Eucalyptus stands for Elastic Utility Computing Architecture for Linking Your Programs to Useful Systems and provides an open source software infrastructure to implement clusters in cloud computing platform. It is used to build private, public and hybrid clouds. It can also produce your own datacenter into a private cloud and allow you to extend the functionality to many other organizations. Eucalyptus provides APIs to be used with the web services to cope up with the demand of resources used in the private clouds.

Cloud Computing Architecture consists of many layers which help it to be more organized and can be managed from one place. The layers are as follows:
1. Cloud Controller or CLC is the top most level in the hirerachy which is used to manage the virtualized resources like servers, network and storage with the user APIs.
2. Walrus is used for the storage and act as a storage controller to manage the demands of the users. It maintains a scalable approach to control the virtual machine images and user data.
3. Cluster Controller or CC is used to control all the virtual machines for executions the virtual machines are stored on the nodes and manages the virtual networking between Virtual machines and external users.
4. Storage Controller or SC provides a storage area in block form that are dynamically attached by Virtual machines.
5. Node Controller or NC is at the lowest level and provides the functionality of a hypervisor that controls the VMs activities, which includes execution, management and termination of many instances.

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