Cloud computing is a big hit with every software development company today. It describes the approach that involves abstracted IT infrastructures (e.g, computing power, data storage, network capacity, or even finished software) being dynamically adapted to be provided for different needs over a network. From a user's perspective, the abstract provided IT infrastructure seems remote and obscure, hidden in a "cloud".

Simply, in its approach, the following has to be described: A portion of the IT environment (in this context, the hardware, data center, data storage and software) is 'more self-operated or not provided locally to the users, but, are provided through one or more service providers who are hired. The applications and data are no longer on the local machine or in the corporate data center, but in the (metaphorical) cloud. The design element of an abstract cloud outline is often used in network diagrams to represent an unspecified portion of the Internet.

Access to the remote systems is done via a network such as that of the Internet. But there are also companies in the context of so-called "private clouds", where provision of an internal company intranet is needed. Most providers of cloud solutions leverage the pooling effect from the sharing of resources for its business model.

There are different types of cloud computing. The most commonly used ones are:

1. Infrastructure

2. Platform

3. Application

Below, the functioning methods of the different types of cloud computing has been mentioned:

1. Infrastructure (IAAS): This model is called Infrastructure-as-a-Service. The user this to access existing services within the system, manages its computing instances, however, largely self-service within the IaaS concept are typically distributed persistence (like Amazon's Simple Storage Service) and a news service (Message Oriented Middleware). If the cloud services themselves have designed high-scaling, the same can not necessarily be on the programs that run on the user-introduced computing instances.

2. Platform (PaaS): This model is used as a platform-as-a-Service. Here the application is in the foreground. The developer creates the application and loads it into the cloud. This takes care of itself to the allocation to the actual processing units. Unlike IaaS, here the user has no direct access to the computing instances. He also runs any virtual server. In PaaS scenario, he brings only his logic into the cloud, which occurs compared to a programming. The infrastructure of the cloud itself takes care of this and the instantiation of the processing units and the distribution of data to be processed are required.

3. Application (SaaS): This model is also called software-as-a-Service (SaaS). The application point of view is the most abstract view of cloud services. This does not bring the user's application in the cloud, nor does he take care of scalability and data storage. He uses this to access an existing application, which offers him the cloud from the outside. This use case includes the two earlier mentioned cloud computing methods, because, the cloud's features, such as highly scalable, distributed memory, fail-safe infrastructure, a highly scalable Queuing system are needed. Indeed the basis of the use of an application is that the user of the SaaS service does not come in contact. Cloud computing is being used heavily in providing software development services these days.