A CSP (Cloud Service Provider) is a company that delivers computing resources such as servers, storage, databases, networking, and software to customers over the internet, on demand and priced by usage.
A Cloud Service Provider (CSP) hosts and manages the infrastructure behind cloud computing so businesses can run workloads without owning hardware. The three largest CSPs are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Customers rent compute, storage, and services on demand and pay only for what they use.
Note on the acronym: In cloud computing, CSP means Cloud Service Provider. In Microsoft cryptography (the CryptoAPI), CSP means Cryptographic Service Provider, a software library that performs cryptographic operations. This article covers the cloud meaning.
Key Takeaways
- A CSP delivers computing infrastructure, platforms, and software as on-demand services over the internet, billed by consumption.
- The three dominant cloud service providers are AWS, Microsoft Azure, and Google Cloud Platform, which together hold roughly two-thirds of the global cloud infrastructure market (Synergy Research Group, Q1 2026).
- NIST SP 800-145 defines three service models (IaaS, PaaS, SaaS) and four deployment models (public, private, community, hybrid).
- Cloud security runs on a shared responsibility model: the CSP secures the infrastructure, and the customer always secures its own data, access, and configuration.
- Businesses adopt CSPs to cut cost, scale on demand, speed up deployment, support disaster recovery, and meet regulations and standards such as HIPAA, FIPS, and PCI DSS.
What Is a CSP?
A CSP is a company that owns and operates the data centers, hardware, and software platforms that deliver cloud computing to customers over the internet.
Cloud service providers let developers and businesses rent computing capacity instead of buying and maintaining their own servers. A CSP handles the physical infrastructure; stores, processes, and analyzes data; protects data at rest and in transit; and offers developer tools to build applications in the cloud. Resources can be consumed on demand, reserved for set periods, or run on dedicated hosts for constant workloads.
CSPs price these services across a wide range so organizations of any size can use them. The top providers differ in their infrastructures and APIs, so the right choice depends on the specific workload, data handling needs, and regional availability you require.
Cloud Service Models: IaaS, PaaS, and SaaS
NIST SP 800-145 defines three cloud service models, distinguished by how much of the stack the provider manages versus the customer. (NIST SP 800-145)
| Model | What the CSP manages | What you manage | Example |
| IaaS (Infrastructure as a Service) | Physical data centers, hardware, virtualization, networking | OS, middleware, runtime, applications, data | Amazon EC2, Azure VMs, Google Compute Engine |
| PaaS (Platform as a Service) | Everything up to the runtime and development tools | Your application code and data | Azure App Service, Google App Engine |
| SaaS (Software as a Service) | The entire application delivered over the internet | Your data, users, and access settings | Microsoft 365, Salesforce, Google Workspace |
The higher up the stack the CSP manages, the less you control and the less you must secure yourself. IaaS gives the most control and the largest configuration surface; SaaS gives the least.
Cloud Deployment Models
A cloud deployment model describes who can access a cloud and how it is provisioned. NIST SP 800-145 defines four.
- Public cloud: Open to many organizations and accessed over the internet. AWS, Azure, and GCP are public clouds.
- Private cloud: Provisioned for a single organization, whether hosted on-premises or by a third party.
- Community cloud. Shared by several organizations with common requirements, such as a shared compliance mandate.
- Hybrid cloud: Combines two or more distinct cloud infrastructures (public, private, or community), letting data and applications move between them.
Multi-cloud, the use of several public clouds together, is a common variation. It is a deployment strategy rather than one of the four formal NIST models.
Who Secures the Cloud? The Shared Responsibility Model
Cloud security is split between the provider and the customer under a shared responsibility model: the CSP secures the cloud itself, and the customer secures what it puts in the cloud.
The CSP is responsible for the security of the underlying infrastructure, meaning the physical data centers, hardware, hypervisor, and core network. The customer is responsible for its data, identities, access controls, and configurations. The exact line shifts with the service model, but one rule holds across IaaS, PaaS, and SaaS: the customer always owns its data and identities and remains responsible for protecting them. Misreading this boundary is one of the most common causes of cloud data exposure.
The provider secures the cloud. You secure what you put in it. Your data is always yours to protect.
Why Use a Cloud Service Provider?
Businesses use a CSP to reduce cost, deploy faster, and scale on demand without buying and running their own hardware.
Moving infrastructure to a CSP cuts the capital and staffing cost of building and maintaining data centers. Providers handle rapid deployment of applications and services, so teams spend less time on provisioning. The cloud also supports disaster recovery: a backup of on-premises systems can be kept in the cloud and brought online if a local data center fails.
Compliance is another driver. Because so many regulated industries run on the major CSPs, those providers maintain services and attestations aligned with regulations and standards such as HIPAA and FIPS. This makes it easier for customers to meet their own regulatory obligations, though the customer still owns compliance for its data and configuration.
How Encryption Consulting Helps
Cloud Data Protection Services from Encryption Consulting help your organization protect data across AWS, Azure, and Google Cloud without slowing migration. Encryption Consulting assesses your cloud key management and encryption strategy, helps you keep control of your keys with Bring Your Own Key (BYOK) and HSM-backed key storage, and maps your controls to the regulations you must meet. Backed by ISO/IEC 27001:2022 and SOC 2 certified practices.
Frequently Asked Questions
What does CSP stand for?
CSP stands for Cloud Service Provider: a company that delivers computing resources such as servers, storage, databases, networking, and software over the internet on demand. The three largest cloud service providers are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Note that in Microsoft cryptography, CSP can also mean Cryptographic Service Provider, which is a different concept.
What is the difference between IaaS, PaaS, and SaaS?
IaaS gives you raw compute, storage, and networking that you manage yourself, such as virtual machines. PaaS adds a managed runtime and development tools so you deploy code without managing servers. SaaS delivers finished applications you use through a browser. NIST SP 800-145 defines all three as the standard cloud service models.
Who is responsible for security in the cloud?
Security in the cloud follows a shared responsibility model. The cloud service provider secures the underlying infrastructure, meaning the physical data centers, hardware, and network. The customer secures what it puts in the cloud, including data, access, and configurations. The customer is always responsible for its own data, regardless of whether it uses IaaS, PaaS, or SaaS.
What are the four cloud deployment models?
NIST SP 800-145 defines four cloud deployment models. A public cloud is open to many organizations over the internet. A private cloud is used by a single organization. A community cloud is shared by organizations with common concerns. A hybrid cloud combines two or more of these. Multi-cloud, using several public clouds together, is a common variation.
Why do businesses use a cloud service provider?
Businesses use a cloud service provider to cut infrastructure cost, deploy applications faster, and scale on demand without buying and maintaining hardware. A CSP also supports disaster recovery by hosting backups offsite, and helps meet regulations and standards such as HIPAA and FIPS through compliance-ready services. The customer pays only for the resources it consumes.
How do I choose the right cloud service provider?
Choose a cloud service provider by matching its services, pricing, and compliance certifications to your workload. Compare the APIs, data manipulation options, and regional availability of AWS, Azure, and GCP, since each differs. Confirm the provider meets the standards you must satisfy, such as FIPS, PCI DSS, or HIPAA, and check how encryption and key management are handled for data at rest and in transit.
Protect Your Data in the Cloud
Ready to secure your data across every cloud you run? Explore Cloud Data Protection Services, or talk to an Encryption Consulting advisor.