What Is Cloud Computing? How the Cloud Works (2024)

What Is Cloud Computing? How the Cloud Works (1)

What Is Cloud Computing?

Cloud computing refers to any kind of hosted service delivered over the internet. These services often include servers, databases, software, networks, analytics and other computing functions that can be operated through the cloud.

Files and programs stored in the cloud can be accessed anywhere by users on the service, eliminating the need to always be near physical hardware. In the past, for example, user-created documents and spreadsheets had to be saved to a physical hard drive, USB drive or disk. Without some kind of hardware component, the files were completely inaccessible outside the computer they originated on. Thanks to cloud storage, few people worry anymore about fried hard drives or lost or corrupted USB drives. Cloud computing makes the documents available everywhere because the data actually lives on a network of hosted servers that transmit data over the internet.

What Is Cloud Computing?

Cloud computing is a hosted service delivered over the internet that allows users to access files and programs anywhere, eliminating the need to always be near physical hardware.

Cloud Computing Service Types

Cloud computing services are broken down into three major categories: software-as-a-service (SaaS), platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS).

Software-as-a-Service

SaaS is the most common cloud service type. Many of us use it on a daily basis. The SaaS model makes software accessible through an app or web browser. Some SaaS programs are free, but many require a monthly or annual subscription to maintain the service. Requiring no hardware installation or management, SaaS solutions are a big hit in the business world. Notable examples include Salesforce, Dropbox and Google Docs.

Platform-as-a-Service

PaaS is a cloud environment supporting web application development and deployment. PaaS supports the full lifecycle of applications, helping users build, test, deploy, manage and update all in one place. The service also includes development tools, middleware and business intelligence solutions. Notable examples include Windows Azure, AWS Elastic Beanstalk and Google App Engine.

Infrastructure-as-a-Service

IaaS provides users with basic computer infrastructure capabilities like data storage, servers and hardware — all in the cloud. IaaS gives businesses access to large platforms and applications without the need for large onsite physical infrastructures. Notable examples of IaaS include DigitalOcean, Amazon EC2 and Google Compute Engine.

Related Reading25 Top IaaS Providers and Companies to Know

Benefits of Cloud Computing

There’s lots to be gained from cloud computing. In an increasingly remote world, one of the cloud’s big draws is that it allows for business operations to continue regardless of location. A report from Grand View Research highlighted the transition to remote work models as a significant driver of growth in the U.S. cloud computing market, which is projected to see a compound annual growth rate of 15.7 percent from 2022 to 2030.

Cloud storage also comes with a number of other benefits. Business leaders have reported the top benefits of cloud computing to be increased efficiency, faster deployment, collaboration tools, security and remote accessibility, according to Statista.

How Does Cloud Computing Work?

The cloud is basically a decentralized place to share information through satellite networks. Every cloud application has a host, and the hosting company is responsible for maintaining the massive data centers that provide the security, storage capacity and computing power needed to maintain all of the information users send to the cloud.

How Cloud Computing Works

Cloud computing works by having companies host or maintain massive data centers that provide the security, storage capacity and computing power to support cloud infrastructure. Clients pay for the rights to use their clouds along with an ecosystem to communicate between devices and programs.

These hosting companies can sell the rights to use their clouds and store data on their networks, while also offering the end user an ecosystem that can communicate between devices and programs (for example, download a song on your laptop and it’s instantly synced to the music app on your iPhone).

More on Cloud Computing10 Cloud Computing in Healthcare Examples to Know

Types of Cloud Computing Delivery Models

Public Cloud

This is the most common and all of the players in cloud computing (Amazon, Microsoft, Apple and Google) run public clouds accessible anywhere with login credentials and the right web app.

Private Cloud

This model offers the same kind of flexibility as the public cloud, but with the infrastructure needs (hosting, data storage, IT staff, etc.) provided by the companies or users of the service. Additionally, the restricted access and hands-on management of hosting gives the private model an extra layer of security.

Hybrid Cloud

Hybrid cloud computing is a combination of the public and private models. The two cloud types are linked over the internet and can share resources when needed (for example, if the private cloud reaches storage capacity or becomes corrupted, the public cloud can step in and save the day).

Related Reading15 Cloud Storage Companies Handling Our Data

What Is Cloud Computing? How the Cloud Works (2024)

FAQs

What Is Cloud Computing? How the Cloud Works? ›

How Cloud Computing Works. Cloud computing works by having companies host or maintain massive data centers that provide the security, storage capacity and computing power to support cloud infrastructure. Clients pay for the rights to use their clouds along with an ecosystem to communicate between devices and programs.

What is cloud computing and how does it works? ›

Simply put, cloud computing is the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the internet (“the cloud”) to offer faster innovation, flexible resources, and economies of scale.

What is the best explanation of cloud computing? ›

Cloud computing is the on-demand access of computing resources—physical servers or virtual servers, data storage, networking capabilities, application development tools, software, AI-powered analytic tools and more—over the internet with pay-per-use pricing.

How do you explain the cloud? ›

The definition for the cloud can seem murky, but essentially, it's a term used to describe a global network of servers, each with a unique function. The cloud is not a physical entity, but instead is a vast network of remote servers around the globe which are hooked together and meant to operate as a single ecosystem.

What makes the cloud work? ›

Cloud computing is possible because of a technology called virtualization. Virtualization allows for the creation of a simulated, digital-only "virtual" computer that behaves as if it were a physical computer with its own hardware. The technical term for such a computer is virtual machine.

What is a good example of cloud computing? ›

Dropbox, Google Drive, and Amazon S3 are the most popular online storage that can keep our files readily accessible anytime, anywhere. They are the cloud computing examples that us take our data with us as long as we have the Internet connection to access them.

What is cloud computing in simple sentence? ›

Cloud computing is a general term for the delivery of hosted computing services and IT resources over the internet with pay-as-you-go pricing.

Why do we need cloud computing? ›

Cloud computing gives your business more flexibility. You can quickly scale resources and storage up to meet business demands without having to invest in physical infrastructure. Companies don't need to pay for or build the infrastructure needed to support their highest load levels.

What are the 4 types of cloud computing? ›

The main three types of cloud computing are public cloud, private cloud, and hybrid cloud. Within these deployment models, there are four main services: infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS), and serverless computing.

Who owns the cloud? ›

Cloud data ownership depends on the terms of service of the individual provider, but generally users own their own data on the cloud. This stuff is broken down very clearly in your provider contract: providers generally agree to store your data securely, but ownership rights remain with the individual or company.

How do I explain cloud computing to my grandma? ›

Cloud computing is like going out to a restaurant instead of cooking dinner at home. When you cook at home, you have to do everything yourself. You need to use your own plates, pots, and pans. You have to know how many people are coming over and buy the right amount of ingredients.

How does the cloud work for beginners? ›

Cloud Computing is a network of remote servers hosted on the internet for storing and retrieving data. The cloud provides a number of IT services such as servers, databases, software, virtual storage, and networking, among others. Companies that offer all the services are called cloud providers.

How do you explain cloud computing to a child? ›

The cloud is a network of servers that are connected to the internet and are used to store, process, and manage data. Instead of storing data on your personal computer or phone, you can access the cloud over the internet and use it to store and access your data from any device.

How does the cloud work step by step? ›

Users upload data to servers via an internet connection, where it is saved on a virtual machine on a physical server. To maintain availability and provide redundancy, cloud providers will often spread data to multiple virtual machines in data centers located across the world.

How is cloud computing used in everyday life? ›

Everyday life activities such as Banking, Email, Media Streaming, and Ecommerce all use the Cloud. On the Business side, Applications, Infrastructure, Storage, and Sales/CRM all have their presence out in the Cloud.

What is the main problem with using the cloud? ›

Some key issues that may be faced when using cloud computing include: Security: Storing sensitive information and software in remote data centers can make it more vulnerable to cyber attacks. Reliability: Internet connectivity and power outages can disrupt access to cloud-stored data and software.

What is cloud computing with real time example? ›

Cloud computing is an infrastructure and software model that enables ubiquitous access to shared pools of storage, networks, servers, and applications. It allows for data processing to be done a privately-owned cloud or a third-party server. This creates maximum speed and reliability.

What is cloud computing step by step? ›

WHAT IS CLOUD COMPUTING? Cloud traditionally depicts the internet, hence, it is also referred to as “the cloud”. In simple terms, it means saving or accessing your data and programs over the internet. Cloud computing means making computer infrastructure and services available as per need using internet.

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