Server virtualization allows organizations to concentrate their data center resources across a smaller number of physical hosts with a lower percentage of potential resources left idle and consuming power when unused.

Scalability is a key cloud characteristic. This refers to the ability of the cloud to easily grow your service presence as user demand increases.

Software as a Service is in use here. The application’s cloud availability is a perfect example of SaaS. NaaS is the infrequently used term Network as a Service.

Note that in the possible answers – public, hybrid, and community clouds are also described.

In order to progress to a private cloud in stages – a company could first virtualize and then move the infrastructure of the network to cloud technologies. They could then use PaaS, followed by SaaS. SaaS tends to have greater complexity and requirements than IaaS.