The following is an example of a network diagram of a typical cloud service provider who provides IaaS to their clients. The entire client network is virtualized within the service provider's virtual environment:
On the client side, they only have simple desktop computers and mobile devices to access their virtual cloud resources, such as desktop, storage, and processing power. Clients access these resources through virtual means, such as Virtual Network Computing (VNC), SPICE, or Remote Desktop Protocol (RDP).
Virtual networks are isolated with separate subnets. VLANs are set up (not shown in the diagram) to ...