Cloud computing is a model for ensuring ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources. The essential characteristics of cloud computing are on demand self-service, broad network access, resource pooling, rapid elasticity and measured service. Some of generally more familiar cloud services are the e-mail web services, online offices and online auction websites. In cloud computing there are four deployment models: private, community, public and hybrid clouds. This paper compares private and public clouds. Furthermore, types of virtualisation are introduced along with virtualisation management and the risks of virtualisation. Moreover, the thesis depicts the role and the functioning of a virtual switch and outlines the isolation of virtual machines and their communication. The paper reveals that each cloud has its advantages and disadvantages, an overview of which makes the cloud decision process easier for the user.
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