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Published: February 22, 2024
Contributors: Stephanie Susnjara, Ian Smalley

What is cloud architecture?

Cloud architecture refers to the integration of technology components—physical servers, databases, storage devices, virtual resources, networking elements and software—involved in building a cloud computing environment.

Based on business needs, a cloud architecture serves as a design strategy for connecting the cloud-based infrastructure for running and deploying applications. Cloud architecture considers an organization’s workload requirements and operational costs to deliver the flexibility, scalability and cost-savings of cloud computing.

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Cloud computing explained

An essential part of modern business operations, cloud computing is the on-demand access, via the internet, to computing resources—applications, physical servers, virtual servers, data storage, development tools, networking capabilities and more—hosted at a remote data center managed by a cloud services provider (or CSP).

Typically, one of the leading cloud vendors—Amazon Web Services (AWS), Google Cloud Platform, IBM Cloud or Microsoft Azure—or other cloud services providers like VMware makes these resources available on a pay-as-you-go or a monthly subscription basis. Cloud computing allows businesses to use remote servers to store and access data, reducing the costs of building and maintaining traditional on-premises IT infrastructure.

Cloud computing offers myriad business advantages, including improved performance and efficiency, unlimited scalability and enhanced strategic value. According to a report from McKinsey (link resides outside ibm.com), cloud computing could generate approximately USD 3 trillion in EBITDA (earnings before interest, taxes, depreciation and amortization) by 2030. The study also found the value cloud generates from enabling businesses to innovate is worth more than five times what is possible by simply reducing IT costs. Business use cases predicted to drive the value of cloud computing include big data analytics, the Internet of Things (IoT) and automation.

How does cloud architecture work?

Cloud computing architecture integrates four essential components to create an IT environment that abstracts, pools and shares scalable resources across one or more cloud environments.

  1. A front-end
  2. A back-end
  3. A network
  4. A cloud-based delivery platform

Cloud architectures vary based on an organization’s unique business drivers and technology requirements. Still, they all share the same goal of creating a roadmap that considers application workloads, cloud deployment models, service management and design needs.

1. The front-end

Front-end cloud architecture refers to the user- or client-side of the cloud computing system. It consists of graphic user interfaces (GUIs), dashboards and navigation tools that provide on-demand access to cloud services and resources. Key components include software apps and programs installed on devices (e.g., mobile phone, laptop or desktop) to access the cloud platform or service. Accessing a web-based video communications application (e.g., Zoom, Webex) via a laptop computer or ordering food through a mobile delivery platform (e.g., Uber Eats, DoorDash) are both examples of front-end cloud architecture capabilities.

2. The back-end

While the front-end includes all elements related to the client (e.g., a visitor to an e-commerce site), the back-end (or ‘server-side’) refers to the structuring of the site and the programming of its main functionalities. It provides all of the behind-the-scenes technology (cloud servers, cloud databases, application programming interfaces (APIs) to access files) used by the CSP to support the front-end, including all the code that helps a database or web server communicate with a web browser or a mobile operating system. 

Back-end cloud architecture components include the following:

  • Applications: Back-end apps are the software or platforms that deliver the client service requests on the front-end.
  • Cloud computing service: The back-end service provides utility in cloud architecture and manages the accessibility of cloud-based resources (e.g., cloud-based storage services, application development services, web services, security services, etc.).
  • Cloud runtime: Runtime provides the environment (operating system, hardware, memory) for executing or running services. Virtualization plays a crucial role in enabling multiple runtimes on the same server. (Read more about virtualization below.)
  • Cloud storage: Cloud storage in the back-end refers to the flexible and scalable storage service and management of data stored to carry out applications.
  • Infrastructure: Infrastructure consists of all the back-end resources or hardware (e.g., servers, databases, CPU (central processing unit), network devices like routers and switches, graphics processing unit (GPU), etc.) and all the software used to run and manage cloud-based services. In cloud-computing speak, the term infrastructure is sometimes confused with cloud architecture, but there’s a distinct difference. Like a blueprint for constructing a building, cloud architecture serves as the design plan for building cloud infrastructure.
  • Management software: Middleware coordinates communication between the front-end and back-end in a cloud computing system. This component allows for the delivery of services in real-time to ensure smooth front-end user experiences.
  • Security tools: Security tools provide the back-end security (also referred to as service-side security) for potential cyberattacks or system failures. Virtual firewalls protect web applications, prevent data loss and ensure backup and disaster recovery. Back-end components include encryption, access restriction and authentication protocols to protect data from breaches.
3. A network

An internet connection typically connects the front-end with the back-end functions. An intranet—a privately maintained computer network accessed only by authorized persons and limited to one institution—or an intercloud connection may also connect the back-end and front-end. A cloud network should provide high bandwidth and low latency, allowing users to continuously access their data and applications. The network must also provide agility so that access to resources can occur quickly and efficiently between servers and cloud-based environment. 

Other significant cloud architecture networking gear includes load balancers, content delivery networks (CDNs) and software-defined networking (SDN) to ensure data flows smoothly and securely between front-end users and back-end resources.

4. Cloud-based delivery models

There are three main types of cloud delivery models (also known as cloud service models): IaaS, PaaS and SaaS. These models are not mutually exclusive. Most large enterprises use all three as part of their cloud delivery stack:

  • IaaS, or Infrastructure-as-a-Service, is the on-demand access to cloud-hosted physical and virtual servers, storage and networking—the back-end IT infrastructure for running applications and workloads in the cloud. IaaS allows organizations to scale and shrink infrastructure resources as needed. This cloud-based service helps them avoid the high costs associated with building and managing an on-premises data center, providing the capacity to accommodate highly variable or ‘spiky’ workloads. 
  • PaaS, or Platform-as-a-Service, is the on-demand access to a complete, ready-to-use cloud computing platform for developing, running and managing applications. PaaS can simplify the migration of existing applications to the cloud through re-platforming (moving an application to the cloud with modifications that take better advantage of cloud scalability, load balancing and other capabilities) or refactoring (re-architecting some or all of an application using microservicescontainers and other cloud-native technologies).
  • SaaS, or Software-as-a-Service, is the on-demand access to ready-to-use, cloud-hosted application software (e.g., Salesforce, Mailchimp). SaaS offloads all software development and infrastructure management to the cloud service provider. Because the software (application) is already installed and configured, users can provision the cloud-based server instantly and have the application ready for use in hours. This capability reduces the time spent on installation and configuration and speeds up software deployment.

According to a Gartner report (link resides outside ibm.com), almost two-thirds (65.9%) of enterprise IT spending will go toward Software-as-a-Service in 2025, up from 57.7% in 2022.

Other popular service platforms include the following:

  • Serverless computing (or serverless): Serverless is a cloud application development and execution model that allows developers to build and run code without provisioning or managing servers or back-end infrastructure.
  • Business-Process-as-a-Service (BPaaS): BPaaS is a business process outsourcing platform that combines IaaS, PaaS and SaaS services.
  • Function-as-a-Service (FaaS): FaaS is a subset of SaaS in which application code runs only in response to specific events or requests. FaaS makes it easier for DevOps and other teams to run and manage microservices applications.
Key cloud architecture technologies

The following are a few of the most critical technologies for developing cloud architecture.

Virtualization

Crucial to cloud architecture, virtualization acts as an abstraction layer that enables the hardware resources of a single computer—processors, memory, storage and more—to be divided into multiple virtual computers known as virtual machines (VMs). Virtualization connects physical servers maintained by a cloud service provider (CSP) at numerous locations, then divides and abstracts resources to make them accessible to end users wherever there is an internet connection. Besides virtualizing servers, cloud technology uses many other forms of virtualization, including network virtualization and storage virtualization.

Automation

Cloud automation involves implementing tools and processes that reduce or eliminate the manual work associated with provisioning, configuring and managing cloud environments. Cloud automation tools run on top of virtualized environments and play an essential role in enabling organizations to take more significant advantage of the benefits of cloud computing, like the ability to leverage cloud resources on demand and scale them up and down on an as-needed basis. Automation plays a vital role in DevOps workflows, speeding up tasks related to building, testing, deploying and monitoring applications, resulting in cost savings and faster time to market.

Cloud deployment models

There are four main cloud delivery models, each offering unique features for running workloads and optimizing business value.

Public cloud

public cloud is a computing model where a cloud service provider makes computing resources (e.g., software applications, development platforms, VMs, bare metal servers, etc.) available to users over the public internet. CSPs sell these resources according to subscription-based or pay-per-usage pricing models.

Public cloud environments are multi-tenant, where users share a pool of virtual resources automatically provisioned for and allocated to individual tenants through a self-service interface. This feature allows providers to maximize utilization of their data center hardware and infrastructure, thus offering cloud customers services for the lowest possible costs with access from anywhere.

Private cloud

private cloud is a single-tenant cloud environment where all resources are isolated and operated exclusively for one organization. Private cloud combines many benefits of cloud computing with the security and control of on-premises IT infrastructure. For instance, companies that must meet strict regulatory compliance requirements, such as healthcare or financial institutions, may choose private clouds for their sensitive data using customized security measures like firewalls, virtual private networks (VPNs), data encryption and API keys.

Hybrid cloud

hybrid cloud combines public cloud, private cloud and on-premises (‘on-prem’) infrastructure to create a single IT infrastructure so companies can get the best out of all computing environments to meet their business needs. Organizations favor a hybrid cloud model for its agility in moving applications and workloads across cloud environments based on technological or business goals.

For instance, an enterprise with concerns surrounding sensitive data (e.g., intellectual property, personally identifiable information (PII), medical records, etc.) can store them in a private cloud. For other workloads, such as web hosting or content hosting, businesses may choose a public cloud setting for its cost savings and ability to scale resources up and down based on user traffic (e.g., scale up during a social media campaign promoting a new product).

According to the IBM Transformation Index: State of Cloud, over 77% of business and IT professionals have adopted a hybrid cloud approach.

Hybrid multicloud

Today, most enterprise businesses merge a hybrid cloud with a multicloud environment. A multicloud is a cloud computing model that incorporates multiple cloud services from more than one provider within the same IT infrastructure. Together, hybrid and multicloud models create a hybrid multicloud architecture that offers businesses the flexibility to create the best of both cloud computing worlds for migrating, building and optimizing applications across multiple clouds.

In addition to offering the control and flexibility to choose the most cost-effective cloud service, hybrid multicloud provides the most control over where organizations can deploy and scale workloads (e.g., deploy closer to edge environments), further improving performance. Each cloud provider offers its unique services. Businesses can customize a mix of network, storage and cloud solutions from different cloud providers to find the best-in-class solutions. For instance, a company may use IBM Cloud for its advanced data and artificial intelligence (AI) capabilities, Microsoft Azure for its compliance and security features and Google Cloud for its global networking reach.

What is a cloud architect?

A cloud computing environment is complex, and evaluating all the solutions associated with a cloud architecture can be daunting. Organizations looking to move their applications to the cloud and deploy cloud-based services frequently hire a cloud architect—an IT specialist who oversees and orchestrates a plan for developing, executing, managing and monitoring their cloud architecture. This technology professional collaborates with leadership stakeholders and other IT team members to review cloud-based solutions to create the best strategy that aligns with their overall business objectives.

Ideally, a cloud architect helps map out a cost-effective, customized, business-ready plan that integrates infrastructure and platform strategy, increased security and cyber resilience, and management models. Typically, a cloud architect has obtained one or more certifications displaying their skills and expertise in specific cloud platforms. All of the major CSPs—IBM Cloud, Microsoft Azure, AWS, Google Cloud and more—offer certifications in cloud architecture.

Cloud architecture best practices

A well-defined cloud architecture framework should include best practices and guidelines to help architects create cloud solutions that are resilient, performant, and secure. Best practices should include the following:

  • Automate operations to reduce costs and support the solution’s reliability, availability and security.
  • Respect data gravity—the concept that data has its own mass and force. The larger the mass of data, the greater the effort required to move it, which usually translates into more time, cost and processing power. Implement solutions that shift computing to the data where it resides to reduce operating costs and complexity.
  • Choose the best platform for each workload to take advantage of platform capabilities to optimize service levels and workload operating characteristics.
The benefits of cloud architecture

With a customized cloud architecture in place, you can develop a high-performance, cost-saving strategy with wide-ranging benefits.

Customize cloud migration

Develop the best cloud migration strategy to meet your workload needs (e.g., migrate specific databases or servers to the cloud to capitalize on lower costs, more reliable performance and improved efficiency).

Accelerate modernization

Gain the flexibility, scalability and cost control needed to support cloud-native technologies like self-service orchestration and automation tools (e.g., Kubernetes).

Speed time to market

Expand Agile and DevOps methodologies so development teams can develop applications once and deploy to all clouds, increasing time to market.

Innovate faster

Stay ahead of today’s on-demand trends and gain a competitive advantage with evolving cloud capabilities that support artificial intelligence (AI), machine learning (ML), generative AI, quantum computing, blockchain and IoT.

Boost resiliency and minimize risk

Reduce downtime and enable a faster disaster recovery plan by spreading workloads and data across multiple resilient cloud environments.

Enhance compliance and security

Access the latest cloud security and regulatory compliance technologies and consistently implement security and compliance across all environments.

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Resources What is cloud computing?

Cloud computing is the on-demand access of computing resources—servers, storage, software, AI-powered tools and more—over the internet with pay-per-use pricing.

What is hybrid cloud architecture?

Hybrid cloud architecture refers to an environment that combines on-premises, private cloud, public cloud and edge settings to create a single, flexible managed IT infrastructure.

What is multicloud?

Multicloud is the use of cloud services from more than one cloud vendor. It can be as simple as using SaaS from different cloud vendors (e.g., Salesforce and Workday). But in the enterprise, multicloud typically refers to running managed services and enterprise applications on PaaS or Saas from multiple cloud service providers.

IBM Well-Architected Framework

The IBM Well-Architected Framework is a structured collection of materials, recommendations and best practices to help architects create hybrid cloud solutions that are resilient, performant and secure. The framework comprises six pillars, key dimensions or qualities that a hybrid cloud solution should contain.

How to design a cloud architecture

Understanding various design patterns and other vital factors helps distill the complexity of designing a hybrid cloud architecture.

Hybrid cloud architecture: Intro

A three-part lightboarding video series that will delve into hybrid cloud architecture. In this intro video, Sai Vennam lays out the three major hybrid cloud architecture issues we will cover: Connectivity, Modernization and Security.

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