Eucalyptus is open source software that implements cloud computing within a datacenter. It provides an Infrastructure as a Service (IaaS) solution for enterprises and service providers to build their own on-premise private clouds. Eucalyptus architecture consists of 5 components - the Cloud Controller (CLC) for high-level scheduling, Cluster Controllers (CC) to manage virtual machines, Node Controllers (NC) that execute VMs on host machines, Storage Controller (SC) for block storage, and Walrus for persistent object storage. Together these components allow users to deploy and manage virtual computing environments in a cloud-like manner.