A Type 2 hypervisor differs from a Type 1 hypervisor in that it runs on top of another operating system rather than directly tied into the underlying hardware of the virtual host servers. With this type of implementation, additional security and architecture concerns come into play because the interaction between the operating system and the hypervisor becomes a critical link. The hypervisor no longer has direct interaction and control over the underlying hardware, which means that some performance will be lost due to the operating system in the middle needing its own resources, patching requirements, and operational oversight.

Cloud environments, regardless of the specific deployment model used, have extensive and robust security controls in place, especially in regard to physical and infrastructure security. A small company can leverage the extensive security controls and monitoring provided by a cloud provider, which they would unlikely ever be able to afford on their own. Moving to a cloud would not result in any gains for development and testing because these areas require the same rigor regardless of where deployment and hosting occur. Regulatory compliance in a cloud would not be a gain for an organization because it would likely result in additional oversight and auditing as well as require the organization to adapt to a new environment.

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Explanation:
Platform as a Service would allow software developers to quickly and easily deploy their applications among different hosting providers for testing and validation in order to determine the best option. Although IaaS would also be appropriate for hosting applications, it would require too much configuration of application servers and libraries in order to test code. Conversely, PaaS would provide a ready-to-use environment from the onset. DaaS would not be appropriate in any way for software developers to use to deploy applications. IaaS would not be appropriate in this scenario because it would require the developers to also deploy and maintain the operating system images or to contract with another firm to do so. SaaS, being a fully functional software platform, would not be appropriate for deploying applications into.

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While the provider might share any of the other options listed, the provider will not share administration of security controls with the customer. Security controls are the sole province of the provider.

A hybrid cloud model involves the use of more than one type of cloud hosting models, typically the mix of private and public cloud hosting models.