1. One-line definition

Cloud computing = renting IT services (servers, storage, databases, apps) over the internet from providers like AWS, Azure, GCP.

2. Five key features (memorise these — NIST)

On-demand self-service — get resources instantly.
Broad network access — use from anywhere.
Resource pooling — many users share same physical resources.
Rapid elasticity — scale up / down fast.
Measured service — pay-as-you-go.

Mnemonic: S N R E M → Self-service, Network access, Resource pooling, Elasticity, Metering.

3. Deployment models (short table)

Model	Who owns	Best for	Quick example
Public	Provider	Cost & scale	Gmail, AWS EC2
Private	Single org	Sensitive data, control	Bank on-prem cloud
Hybrid	Mix	Flexibility (sensitive + public)	Core bank on private, web apps on public
Community	Group of orgs	Shared rules / compliance	Govt research cloud
Multi-Cloud	Multiple providers	Avoid lock-in	Use AWS + Azure services

Tip: Public = cheap & scalable; Private = secure & controlled.

4. Service models — who manages what

Model	You manage	Provider manages	Analogy
IaaS	OS, apps, data	Hardware, network	Empty apartment — you furnish
PaaS	Apps, data	OS, middleware, infra	Furnished apartment
SaaS	Data, config	Everything else	Hotel room — ready to use
Serverless / FaaS	Code only	Full infra & scaling	Restaurant — you order, they cook

Remember: IaaS → PaaS → SaaS = you control less as you move right.

5. Top benefits

Lower cost (no large CAPEX).
Rapid scaling for traffic spikes.
Fast deployment of services.
Better DR / backups options.
Global access and collaboration.

6. Top challenges

Data security & privacy.
Regulatory / compliance (data locality).
Vendor lock-in.
Dependence on internet.
Less direct control over infra.
Third-party risk from vendors.

7. Shared Responsibility (banking focus)

Provider secures the cloud (data-centres, physical infra, hypervisor).
Customer (bank) secures in the cloud (data, apps, identity, encryption).

Exam point: Always mention shared responsibility when asked about cloud security.

8. Key technologies — short definitions

Virtualization — many VMs on one server (VMware).
Containers — lightweight app units (Docker).
Kubernetes — orchestration for containers.
Microservices — many small services via APIs.
IaC (Infrastructure as Code) — Terraform, CloudFormation.
Serverless (FaaS) — event-driven code (Lambda).
SDN — programmable network.
CDN — faster delivery via edge servers (CloudFront).

9. Popular cloud storage & services

Object storage: AWS S3, Azure Blob, Google Cloud Storage.
Compute: AWS EC2, GCP Compute Engine, Azure VMs.
Serverless: AWS Lambda, Azure Functions.
Managed DB: RDS (AWS), Cloud SQL (GCP), Azure SQL.

10. Virtualization vs Cloud

Aspect	Virtualization	Deliver services over the internet
Focus	Create virtual machines	Deliver services over internet
Control	You manage infra + VMs	Provider manages infra layers
Scale	Limited by infra	On-demand, virtually unlimited
Examples	VMware, Hyper-V	AWS, Azure, GCP

11. Business continuity & DR

RTO (Recovery Time Objective) = max acceptable downtime.
RPO (Recovery Point Objective) = max acceptable data loss (time).
DR types: Hot (instant), Warm (partly ready), Cold (slow).
Must: Test BCP/DR regularly.

12. Security checklist

IAM — least privilege.
Encrypt data at rest & in transit.
Network controls — VPC, security groups.
Monitoring & logging — store logs for audits.
VAPT / Pen testing — periodic checks.
Backups — automated & tested.

13. Cloud migration — the 6 R’s (one-line each)

Rehost — lift & shift.
Refactor — small changes.
Revise / Re-architect — cloud native design.
Rebuild — rewrite from scratch.
Replace — move to SaaS.
Retire — decommission old systems.

Memorise: Rehost, Refactor, Revise, Rebuild, Replace, Retire.

14. Governance & Compliance

Data residency rules (keep data inside country if required).
SLA & contracts — uptime, data handling, audits.
Audit trails & log retention — follow regulator timelines.
Vendor due diligence — security posture, certifications (ISO, SOC2).

15. Quick exam checklist

Definitions: Cloud, IaaS, PaaS, SaaS, Serverless.
Deployment models: Public, Private, Hybrid, Community, Multi-cloud.
NIST 5 traits: Self-service, Network access, Resource pooling, Elasticity, Metering.
Shared responsibility — provider vs customer.
Security controls: IAM, encryption, VPC, WAF, logging.
DR: RTO / RPO, hot/warm/cold.
6 Rs of migration.

16. One-page cheat sheet

Cloud = internet IT services (AWS/Azure/GCP)
5 features: Self-service, Network, Pooling, Elasticity, Metering (S N R E M)
Models: Public | Private | Hybrid | Community | Multi-cloud
Service stack: IaaS → PaaS → SaaS → Serverless (you control less → more managed)
Security: Shared responsibility; IAM; Encrypt; VAPT; Logs
DR: RTO (time to recover), RPO (data loss limit)
Migration: 6 Rs — Rehost, Refactor, Revise, Rebuild, Replace, Retire

MCQs – Cloud Computing

What is cloud computing?
A. Local data storage only
B. Delivery of computing services over the internet
C. A type of weather forecasting system
D. On-premises only hardware leasing
Answer: B
Which of the following is not a key characteristic of cloud computing?
A. On-demand self-service
B. Broad network access
C. Fixed resource capacity (never changes)
D. Resource pooling
Answer: C
The pay-as-you-go model in cloud means:
A. You pay for maximum capacity upfront
B. You pay only for the resources you actually use
C. You pay monthly flat regardless of usage
D. You pay before you use any resources
Answer: B
Which deployment model is owned by a single organization and used for its internal use?
A. Public cloud
B. Private cloud
C. Hybrid cloud
D. Community cloud
Answer: B
Which deployment model combines both public and private cloud elements?
A. Community cloud
B. Public cloud
C. Hybrid cloud
D. Private cloud
Answer: C
Which of the following is not a cloud service model?
A. Infrastructure as a Service (IaaS)
B. Platform as a Service (PaaS)
C. Software as a Service (SaaS)
D. Hardware as a Service (HaaS)
Answer: D
In the IaaS model, the customer is responsible for managing:
A. Hardware and network
B. Operating system, applications and data
C. Everything including physical hardware
D. Nothing — everything managed by the provider
Answer: B
Which service model is analogous to a fully managed software solution, where you just use the application?
A. IaaS
B. PaaS
C. SaaS
D. FaaS
Answer: C
Serverless or Function as a Service (FaaS) means:
A. You manage servers, OS, runtime
B. You write code, provider manages infra and scaling
C. You only configure hardware
D. You install applications on your own servers
Answer: B
Which of the following is a major advantage of cloud computing for banks?
A. Huge upfront capital expenditure always
B. Scalability and flexibility
C. Only available locally
D. You must invest heavily in your own data-centre first
Answer: B
Which one is a major risk/challenge in cloud computing for financial institutions?
A. Unlimited resource availability
B. Data security & regulatory compliance
C. No need for internet
D. Vendor-lock in is impossible
Answer: B
The “shared responsibility” model in cloud means:
A. Customer bears everything
B. Provider bears everything
C. Provider secures the cloud infrastructure; customer secures their data & applications
D. Only the vendor manages vendor contracts
Answer: C
What is RTO (Recovery Time Objective) in context of cloud/DR?
A. Max acceptable data loss
B. Max acceptable downtime of a service
C. Minimum latency in cloud services
D. Time to procure new hardware
Answer: B
What is RPO (Recovery Point Objective)?
A. Maximum acceptable downtime
B. Maximum acceptable data loss measured in time
C. Speed of network connection
D. Number of servers in a DR site
Answer: B
Which of the following is not a type of DR site?
A. Hot site
B. Warm site
C. Cold site
D. Blue site
Answer: D
Which technology allows running multiple virtual machines on one physical server?
A. Containerization
B. Virtualization
C. Serverless
D. Blockchain
Answer: B
Containers (e.g., Docker) are:
A. Heavyweight like full VM
B. Lightweight, portable, share host OS
C. Only for mainframe computing
D. Only used for physical servers
Answer: B
Microservices architecture means:
A. One monolithic application
B. Many small independent services communicating via APIs
C. Only for desktop apps
D. Only for non-cloud systems
Answer: B
Multi-cloud strategy means using:
A. One provider only
B. On-premise only
C. Multiple public cloud providers to avoid vendor lock-in
D. No provider at all
Answer: C
Which of the following is a public cloud example?
A. On-prem data centre only
B. AWS EC2
C. Private bank’s internal cloud
D. None of the above
Answer: B
Which of the following is a community cloud?
A. A cloud built for one organisation only
B. A cloud shared by multiple organisations with common concerns
C. A public user-cloud for open users
D. None of the above
Answer: B
Which feature of cloud computing allows you to increase or decrease resources based on demand?
A. Static allocation
B. Elasticity
C. Single tenancy
D. Physical hardware only
Answer: B
Which of these is not an advantage of cloud computing?
A. Reduced maintenance burden
B. Global accessibility
C. Never any need for compliance or regulation
D. Faster deployment
Answer: C
Which of these is not an accurate challenge of cloud computing?
A. Dependence on internet connectivity
B. Limited control over underlying infrastructure
C. Data location/regulatory issues
D. Zero risk of vendor lock-in
Answer: D
Which cloud service provides runtime environment for developers?
A. IaaS
B. PaaS
C. SaaS
D. Hardware as a Service
Answer: B
Which of the following companies is a well-known cloud service provider?
A. AWS (Amazon Web Services)
B. A local small shop
C. None of the above
D. Only hardware vendor without cloud services
Answer: A
Which storage service is example of object storage in the cloud?
A. AWS S3
B. ASIC chip
C. Local desktop C-drive
D. None of the above
Answer: A
What is the purpose of “autoscaling” in cloud services?
A. Manual resource addition only
B. Automatically adjust resources up/down based on demand
C. Fixed resource at peak capacity all the time
D. Eliminate monitoring
Answer: B
Which networking concept is a core part of cloud infrastructure allowing software defined management of networks?
A. SDN (Software-Defined Networking)
B. Fixed wiring only
C. Token ring network
D. None of the above
Answer: A
What is the analogy of SaaS in your personal life (often used for memory)?
A. Empty apartment
B. Furnished apartment
C. Hotel room (you arrive, everything is ready)
D. Building construction
Answer: C
Which statement is correct about the “hybrid cloud”?
A. Uses only public cloud
B. Uses only private cloud
C. Combines private & public cloud to meet different needs
D. Is always slower than private cloud
Answer: C
What does “vendor lock-in” refer to in cloud context?
A. Easily moving between providers
B. Being dependent on a single provider, making switching difficult
C. Having multiple providers by default
D. No cost migration
Answer: B
Which one is part of cloud governance/compliance requirement for banks?
A. Data residency inside country
B. No log retention required
C. No vendor assessment needed
D. Ignore SLAs
Answer: A
In cloud, what is “pay-as-you-go” also called?
A. Subscription flat regardless of usage
B. Metered billing (you pay for what you use)
C. Capital expenditure (CAPEX) only
D. Free services always
Answer: B
Which of the following is a security control in cloud?
A. IAM (Identity & Access Management)
B. Encryption of data
C. Network security groups/firewalls
D. All of the above
Answer: D
Which of the following is not directly managed by the customer in SaaS model?
A. Application configuration
B. Data
C. Operating system
D. User settings
Answer: C
The concept of “resource pooling” in cloud computing means:
A. Resources dedicated one-to-one always
B. Computing resources serve multiple consumers using virtualization
C. No sharing of resources
D. Only one user uses the resource at a time
Answer: B
Which of the following is an example of PaaS?
A. AWS EC2
B. Google App Engine
C. Dropbox
D. On-prem server
Answer: B
Which of these is a benefit of containerization (Docker/Kubernetes) in cloud?
A. Heavy virtualization overhead
B. Lightweight, fast startup, portability
C. Only for legacy apps
D. No benefit in cloud
Answer: B
Which of the following describes “elasticity” (one of the cloud traits)?
A. Resource capacity is fixed once allocated
B. Resources can be rapidly provisioned and released to meet demand
C. Resources are always manually managed only
D. Resources cannot shrink after usage drops
Answer: B
Which of the following is not a correct statement about private cloud?
A. It is used by a single organisation
B. It offers highest control and security
C. It is always cheaper than public cloud for all scenarios
D. It may be hosted on-premises or by a third-party
Answer: C
Data backup and disaster recovery in cloud help banks because:
A. Only offline tapes are used
B. DR sites can be located remotely, quick failover possible
C. Backup is slower always
D. No need of testing DR
Answer: B
Which of these would be a sign of “vendor lock-in”?
A. Easy migration between cloud providers
B. Service only works with one vendor’s proprietary APIs and moving away is very difficult
C. Multiple vendor options
D. Open standards are used
Answer: B
Which of the following statements is correct?
A. Cloud services always offer zero downtime guarantee
B. Cloud allows “on-demand” self-service provisioning
C. Cloud resources must be purchased years in advance
D. Cloud always requires physical hardware management by user
Answer: B
Which model would be most appropriate for a bank’s sensitive core banking system needing high control?
A. Public cloud only
B. Private cloud or hybrid cloud
C. Community cloud only
D. Multi-cloud with no private component
Answer: B
For cost optimization in cloud, which pricing strategy is often used?
A. Fixed flat fee regardless of use
B. Pay-as-you-go and reserved instances
C. Pay maximum capacity always
D. Only yearly CAPEX model
Answer: B
Cloud bursting means:
A. Permanently moving everything off-premises to cloud
B. Using on-premises infrastructure until overflow then burst into cloud for extra capacity
C. Never using cloud
D. Removing cloud usage
Answer: B
In cloud disaster recovery terms, a “warm” DR site is:
A. Fully operational duplicate site ready instantly
B. Partially equipped, requires some setup time
C. No infrastructure until needed
D. Not used for DR
Answer: B
Which of the following technology is central to cloud provider’s offering of virtual machines?
A. Blockchain ledger
B. Hypervisor technology (VMs)
C. Analog computing
D. Manual desk processes
Answer: B
Which of the following best summarises the relationship “IaaS → PaaS → SaaS”?
A. The customer manages more as you move right
B. The provider manages less as you move right
C. The customer manages less as you move right
D. There is no pattern
Answer: C