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Every cloud service depends on resource pooling. Resource pooling is when the cloud service provider virtualizes physical resources into a group, or pool, and makes these pooled resources available to customers. The underlying physical resources are then dynamically allocated and reallocated as the demand requires. Recall the NIST definition of cloud computing as “a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources …” Resource pooling is a defining feature of the cloud.

Resource pooling hides the physical hardware from the customer and allows many customers to share resources such as storage, compute power, and network bandwidth. This concept is also called multitenancy. We'll look at some examples of these pooled resources in the following sections.