What is resource pooling in cloud computing?

Resource pooling is a cloud computing model where computing resources like storage, processing power, and memory are combined into a shared pool and handed out to customers dynamically based on what they need. It is one of the defining traits of cloud computing.

Instead of assigning fixed hardware to each customer, the provider draws from a common pool and allocates on demand. When you need more, you get more. When you do not, those resources go to someone else.

This is what makes the cloud elastic and cost efficient. You pay for what you use, and the provider keeps utilization high across the whole pool.

Related terms: multi tenancy, multi tenant architecture, cloud cost optimization.

How does resource pooling save money?

Sharing a common pool keeps hardware busy and removes the waste of idle, dedicated machines.