Courseiva
AZ-900Chapter 4 of 138Objective 1.3

Public, Private, and Hybrid Cloud

This chapter covers the three cloud deployment models — public, private, and hybrid — and how they differ in terms of control, ownership, and use case. AZ-900 tests this under objective 1.3.

10 min read
Beginner
Updated Aug 20, 2026
Reviewed by Johnson Ajibi· Senior Network & Security Engineer · MSc IT Security

A simple way to picture Public, Private, and Hybrid Cloud

A Private Garden, a Public Park, and a Shared Community Plot

A private garden behind your house is entirely yours — you control who enters and how it's used, but you're also solely responsible for maintaining it. A public park is open and shared by everyone in the city, maintained by the city itself, and you have no exclusive control over it. A community garden plot sits in between: part of a larger shared space, but with a section reserved and managed specifically for you, connected to the public area around it. These map to the three cloud deployment models: a private cloud is like the private garden (dedicated, exclusive), a public cloud is like the public park (shared infrastructure, open to many), and a hybrid cloud is like the community plot — a private section connected to and working alongside a larger shared space.

How It Actually Works

Public cloud

In a public cloud, infrastructure is owned and operated by a cloud provider (like Microsoft, for Azure) and shared across many customers, though each customer's resources and data remain logically isolated from others. This is the most common model for organizations that want to avoid owning physical infrastructure entirely.

Private cloud

A private cloud is dedicated to a single organization — the infrastructure may be hosted on-premises or by a third party, but it isn't shared with other customers. This gives more control and can help meet specific regulatory or security requirements, at the cost of the organization taking on more responsibility for managing that infrastructure.

Hybrid cloud

A hybrid cloud combines public and private cloud environments, allowing data and applications to be shared between them. This lets an organization keep certain sensitive workloads in a private environment while still taking advantage of the scalability and services of the public cloud for other workloads.

Choosing between them

The right deployment model depends on factors like regulatory requirements, existing infrastructure investments, and how much control an organization needs versus how much operational burden it wants to avoid. There's no universally "best" model — it depends on the specific organization's needs and constraints.

Walk-Through

1

Assess regulatory and control requirements

Some industries or regions have requirements that push organizations toward private or hybrid models for certain data, while others are comfortable fully adopting public cloud.

2

Evaluate existing infrastructure investments

An organization with significant existing on-premises infrastructure might choose hybrid cloud to gradually extend into the public cloud rather than migrating everything at once.

3

Consider scalability needs

Public cloud generally offers the most flexible scalability, since it draws on a provider's large shared infrastructure pool rather than a fixed private capacity.

4

Decide per-workload, not just organization-wide

Many organizations don't pick a single deployment model for everything — they choose the right model for each specific workload based on its individual requirements.

What This Looks Like on the Job

A healthcare organization with strict data-residency and regulatory requirements keeps patient records in a private cloud environment, while using public cloud services for less sensitive workloads like its public website and customer-facing applications — a hybrid approach.

A startup with no existing infrastructure and no special regulatory constraints goes fully public cloud from the start, since there's no legacy investment to account for and public cloud offers the fastest path to scalable infrastructure. Organizations sometimes assume they must pick one deployment model company-wide, when in practice most large organizations mix models across different workloads based on each one's specific needs.

How AZ-900 Actually Tests This

Objective 1.3 expects candidates to distinguish between public, private, and hybrid cloud, and to recognize which model fits a described scenario.

A common wrong answer is assuming private cloud always means "on-premises" — a private cloud can be hosted on-premises or by a third party, as long as the infrastructure is dedicated to a single organization rather than shared. Another common trap is assuming hybrid cloud is simply "using two different providers" — hybrid specifically refers to combining public and private environments, not multiple public cloud providers (that's a related but different concept: multi-cloud).

Stable terms: public cloud, private cloud, hybrid cloud. Knowing what distinguishes each — shared vs. dedicated infrastructure, and whether public and private environments are combined — is the core exam-relevant distinction.

Memory trick: public = shared infrastructure, provider-owned. Private = dedicated infrastructure, single organization. Hybrid = both, connected together.

Key Takeaways

Public cloud infrastructure is shared across many customers and owned by the provider.

Private cloud infrastructure is dedicated to a single organization, whether hosted on-premises or by a third party.

Hybrid cloud combines public and private environments, letting data and applications move between them.

Deployment model choice is often made per-workload, not as a single organization-wide decision.

Easy to Mix Up

These come up on the exam all the time. Here's how to tell them apart.

Public Cloud

Infrastructure shared across many customers

Owned and operated by the provider

Generally the most scalable and cost-flexible

Less direct control over underlying infrastructure

Private Cloud

Infrastructure dedicated to a single organization

Can be hosted on-premises or by a third party

More control, often used for specific compliance needs

Organization takes on more management responsibility

Watch Out for These

Mistake

Private cloud always means the infrastructure is physically on-premises.

Correct

Private cloud means the infrastructure is dedicated to a single organization — it can be hosted on-premises or by a third party, as long as it isn't shared with other customers.

Mistake

Hybrid cloud means using two different cloud providers.

Correct

Hybrid cloud specifically means combining public and private cloud environments. Using multiple public cloud providers together is a related but different concept, usually called multi-cloud.

Mistake

Organizations must choose one deployment model for everything.

Correct

Many organizations use different deployment models for different workloads, based on each workload's specific requirements, rather than committing to a single model company-wide.

Frequently Asked Questions

What's the difference between private cloud and on-premises infrastructure?

They're related but not identical — private cloud specifically means infrastructure dedicated to a single organization, which can be hosted on-premises or by a third-party provider. Traditional on-premises infrastructure, without any cloud-style self-service or elasticity, isn't automatically the same as a private cloud.

Is hybrid cloud the same as multi-cloud?

No. Hybrid cloud refers to combining public and private cloud environments together. Multi-cloud refers to using multiple public cloud providers. They're related concepts but describe different things.

Which deployment model should an organization choose?

It depends on factors like regulatory requirements, existing infrastructure, and scalability needs — there's no universally best option. Many organizations use different deployment models for different workloads rather than picking just one.

Terms Worth Knowing

Ready to put this to the test?

You've just covered Public, Private, and Hybrid Cloud — now see how well it sticks with free AZ-900 practice questions. Full explanations included, no account needed.

Done with this chapter?