Understanding the Four Main types of Cloud Networking

What is Cloud Networking?

Cloud networking refers to the practice of using cloud-based infrastructure and services to manage, control, and deliver networking functions such as connectivity, security, traffic management, and data routing. Rather than relying solely on traditional physical hardware like routers, switches, and firewalls housed on-premises, cloud networking shifts these operations to virtualized, scalable environments hosted by cloud providers.

Unlike traditional on-premises networking, which requires heavy investment in physical infrastructure and manual configuration, cloud networking enables businesses to operate with greater flexibility, scalability, and centralized control. It offers the ability to provision and manage network resources on demand, adapt to changing traffic patterns, and integrate security measures more efficiently across diverse environments.

The growing complexity of IT infrastructures—especially with the rise of hybrid and multi-cloud strategies—has fueled rapid adoption of cloud networking solutions. Australian enterprises and global organizations alike are increasingly leveraging cloud networking to simplify management across multiple cloud platforms, improve performance, enhance security, and support digital transformation initiatives more effectively.

The Four Main Types of Cloud Networking

Cloud networking is not a one-size-fits-all solution. Different business needs, industries, and regulatory environments require different cloud networking models. Here’s a breakdown of the four primary types:

Public Cloud Networking

Public cloud networking is the use of network services and resources provided by a third-party cloud provider over the Internet.

Characteristics 

These services and resources can include software applications, virtual machines, storage, databases, and network management tools.

Public cloud providers such as AWS, Google Cloud Platform, or Microsoft Azure own and operate the underlying infrastructure and offer different service models such as SaaS, PaaS, and IaaS. This cloud computing can offer various benefits such as cost savings, scalability, availability, and innovation to organizations of all sizes and sectors.

For instance, a survey by Forbes Insights found that 83 percent of enterprise workloads will be in the cloud by 2023, with 41 percent running on public cloud platforms.

Watch more: How Does Public Cloud Computing Work?

Benefits and challenges

Some of the benefits of public cloud-based networking are:

• Cost savings: Organizations can reduce their capital and operational expenses by paying only for what they use and avoiding the maintenance of physical hardware and software.
• Scalability: Organizations can easily adjust their network capacity and performance according to their changing needs and demands.
• Availability: Organizations can access their network services and resources from anywhere and anytime with an internet connection.
• Innovation: Organizations can leverage the latest technologies and features offered by public cloud providers without having to invest in their own development.

Some of the challenges of public cloud services are:

• Security: Organizations have to share the same infrastructure with other customers and rely on the provider’s security measures to protect their data and applications.
• Compliance: Organizations have to adhere to the regulations and standards of the provider’s jurisdiction and ensure that their data and applications are compatible with them.
• Vendor lock-in: Organizations may face difficulties in migrating their data and applications to another provider or platform due to technical or contractual constraints.

Private Cloud Networking

Private cloud-based networking is the use of network services and resources that are dedicated to a single organization and accessible only by its authorized users. These services and resources can be hosted on-premises in the organization’s own data center or off-premises by a third-party provider.

Characteristics

Private cloud-powered networking can also be based on virtualization technologies that abstract the physical hardware and create logical pools of network resources that can be allocated to different users and applications.

Benefits and challenges

Some of the benefits of private cloud-based networking are:

• Security: Organizations have full control over their network infrastructure and data and can implement their own security policies and measures.
• Compliance: Organizations can comply with their own regulations and standards and customize their network services and resources according to their specific requirements.
• Performance: Organizations can optimize their network performance and reliability by avoiding the latency and congestion of the public internet.

Some of the challenges of private cloud computing service are:

• Cost: Organizations have to bear the capital and operational costs of acquiring, maintaining, and upgrading their own network hardware and software.
• Scalability: Organizations have to anticipate their future network needs and demands and provision enough resources accordingly.
• Expertise: Organizations have to have skilled staff to manage and operate their private cloud network.

Hybrid Cloud Networking

A hybrid cloud network is the integration of public and private cloud networks to create a unified network environment that supports the movement of data and applications across different platforms.

Characteristics

It can also involve the use of on-premises or edge networks that connect to the cloud networks. This cloud computing enables organizations to leverage the best features of both public and private clouds while addressing their limitations.

Benefits and challenges

Some of the benefits of a hybrid cloud network are:

• Flexibility: Organizations can choose the most suitable platform for each data or application based on factors such as cost, performance, security, compliance, availability, etc.
• Efficiency: Organizations can optimize their resource utilization by balancing their workloads between public and private clouds according to their dynamic needs.
• Resilience: Organizations can improve their business continuity by having backup or failover options in case of disruptions or disasters in one platform.

Some of the challenges of hybrid cloud-powered networking are:

• Complexity: Organizations have to manage multiple network architectures, technologies, providers, policies, etc. across different platforms.
• Compatibility: Organizations have to ensure that their data and applications are interoperable across different platforms.
• Security: Organizations have to protect their data and applications from potential threats as they move across different platforms.

Multi Cloud Networking

Multicloud networking is the use of network services and resources from more than one public cloud provider.

Characteristics

This is a subset of hybrid cloud computing that focuses on the connectivity between different public clouds. It allows organizations to diversify their network portfolio and take advantage of the best offerings from each provider.

Benefits and challenges

Some of the benefits of this cloud network are:

• Choice: Organizations can select the most suitable provider for each service or resource based on factors such as functionality, quality, price, location, etc.
• Redundancy: Organizations can increase their availability and reliability by having multiple providers for backup or failover purposes.
• Innovation: Organizations can access the latest technologies and features from different providers without being limited by one provider’s roadmap.

Some of the challenges of multi-cloud computing are:

• Integration: Organizations have to integrate their network services and resources across different providers and ensure their consistency and compatibility.
• Management: Organizations have to monitor and control their network performance, security, cost, etc. across different providers and platforms.
• Governance: Organizations have to comply with the regulations and standards of each provider and ensure their data and applications are aligned with them.

Watch more: Cloud computing security: Overview and Definition

How to Choose the Right Cloud Networking Model for Your Business

Selecting the right cloud networking model is a strategic decision that depends on your organization’s size, goals, and operational complexity. With options ranging from public and private cloud to hybrid and multi-cloud setups, it’s important to align your choice with both current requirements and long-term growth plans. Here are the key factors to consider:

• Industry Compliance Needs: If your business operates in highly regulated sectors like finance, healthcare, or government, strict compliance with data sovereignty, privacy laws, and security standards (e.g. PCI DSS, ISO 27001, Australian Privacy Act) may necessitate private or hybrid cloud solutions.
• Scalability and Flexibility Requirements: Businesses expecting rapid growth or fluctuating workloads may benefit from public or multi-cloud networking due to their elasticity and resource availability. Hybrid models offer more flexibility for businesses transitioning from legacy systems.
• Budget Constraints: Public cloud networking typically offers the lowest upfront costs and pay-as-you-go pricing, making it suitable for startups or SMEs. Private cloud models, while more secure and customizable, often involve higher capital and operational expenditures.
• Security and Governance Needs: Organizations that prioritize data control, risk mitigation, and policy enforcement may find that private or hybrid cloud environments offer greater visibility and governance over cloud assets.
• Importance of Future-Proofing Cloud Strategies: The ideal cloud networking model should not only meet today’s demands but also adapt to evolving technologies and business models. Multi-cloud setups, for example, provide flexibility to avoid vendor lock-in and adopt best-in-class services as needed.

By evaluating these factors, Australian businesses can choose a cloud networking approach that balances performance, cost, compliance, and innovation—laying a solid foundation for long-term digital success.

Why SmartOSC Is a Trusted Cloud Networking Partner

SmartOSC is a trusted technology partner with deep expertise in designing and implementing secure, scalable, and compliant cloud networking solutions for enterprises across diverse industries. With nearly two decades of experience in digital transformation, SmartOSC helps businesses modernize their IT infrastructure and streamline cloud operations through intelligent network design.

The company’s capabilities span across AWS, Microsoft Azure, Google Cloud Platform (GCP), as well as private cloud, hybrid, and multi-cloud architectures. Whether managing cloud-to-cloud connectivity, integrating legacy systems, or building API-first environments, SmartOSC ensures that networks are optimized for performance, security, and long-term growth.

What distinguishes SmartOSC is its ability to deliver end-to-end cloud networking services—from strategic planning and system integration to governance, monitoring, and cost optimization. With a strong focus on compliance and enterprise-grade reliability, SmartOSC empowers organizations to build cloud infrastructures that are not only robust and secure but also flexible enough to evolve with changing business demands.

Conclusion

Cloud networking is a powerful and versatile way to build and deliver network services and resources to organizations of all sizes and sectors. By understanding the different types of cloud-based networking, organizations can choose the best option for their specific needs and goals. Whether it is public, private, hybrid, or multi-cloud networking, each type has its own benefits and challenges that require careful planning and implementation. If you are interested in learning more about cloud computing and how it can help your organization achieve its digital transformation objectives, contact us today. We are a leading provider of cloud computing services and solutions that can help you design, deploy, and manage your cloud network infrastructure. SmartOSC has the expertise and experience to help you navigate the complex and dynamic cloud landscape and optimize your network performance, security, cost, and innovation.