What is Cloud Computing & Why is it Important? | (2024)

We've established that most of us are already using cloud technology in some form or another. But where does all this data actually live and who runs it?

Cloud computing can be deployed in different ways depending on what services a business needs. The first thing to consider is the deployment model—public cloud, private cloud, hybrid cloud, and multi-cloud. The next element is the service category—Saas (Software as a Service), Paas (Platform as a Service) and Iaas (Infrastructure as a service). When a company is considering itscloud migration strategy, it must consider both factors. Here's a primer on how they work and what they mean for your business.

Deployment models

Public Cloud
Connecting to a public cloud means using an internet connection to access computing resources hosted on data centers managed by a third-party cloud service provider, rather than owning and maintaining these resources on-premise. A shared public cloud has many organizations (or tenants) sharing the same infrastructure.

The largest cloud service providers with data centers that enable massive scaling are called hyperscalers. The big four hyperscalers, collectively referred to as MAAGs, are:Microsoft (Azure),Amazon (Amazon Web Services or AWS),Alibaba (Alicloud), andGoogle (Google Cloud). Other cloud providers includeIBMandOracle.

Private Cloud
This cloud model is great for organizations concerned about sharing resources on a public cloud. It is implemented on servers owned and maintained by the organization and accessed over the internet or through a private internal network.

A private cloud environment gives you complete control over data and security in order to meet specific regulatory and other compliance requirements (e.g., HIPAA for healthcare, GDPR, GxP for Pharma, etc.).

Hybrid Cloud
Many organizations actually use a combination of several cloud environments. This is referred to as a hybrid cloud approach. Hybrid cloud often includes a combination of public cloud and private cloud, frequently in combination with some on-premise infrastructure. To create a true hybrid cloud architecture, you must set up communication or orchestration between the various deployments.

Hybrid cloud eliminates reliance on any single cloud provider and allows for additional levels of flexibility in terms of capabilities, security compliance, etc.

In the past, choosing a hyperscaler meant pickingpublic over private. This is no longer the case. To support regulatory, performance, and data gravity requirements, the hyperscalers are now offering private cloud carveouts in public environments.VMware on AWS(VMC),Azure VMware Services (AVS), andGoogle’s SAP,OracleandBare Metalsolutions are good examples. Similarly, the hyperscalers have been working on private cloud extensions. This blurring of public and private under a hybrid cloud umbrella is likely to accelerate in the future. Over time, we will no longer see a delineation between "public" and "private" but instead, between "dedicated" and "shared."

Multi-cloud
A multi-cloud approach is a particular case of hybrid cloud in which an organization uses services from multiple public cloud providers.

Service categories

Software as a Service (SaaS)
SaaS is the most commonly used cloud application service and is becoming a dominant way for organizations to access software applications.

With SaaS, an organization accesses a specific software application hosted on a remote server and managed by a third-party provider. On a subscription basis, the application is accessed through a web browser, reducing the need for on-device software downloads or updates. Popular SaaS products includeSalesforce,Workday, orMicrosoft Office 365.

What is Cloud Computing & Why is it Important? | (2024)

FAQs

Why is cloud computing important? ›

Cloud infrastructures support environmental proactivity, powering virtual services rather than physical products and hardware, and cutting down on paper waste, improving energy efficiency, and (given that it allows employees access from anywhere with an internet connection) reducing commuter-related emissions.

What is cloud computing and why do we need IT? ›

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 cloud computing best explanation? ›

Cloud computing is the delivery of different services through the Internet, including data storage, servers, databases, networking, and software. Cloud storage has grown increasingly popular among individuals who need larger storage space and for businesses seeking an efficient off-site data back-up solution.

What are the 3 benefits of cloud computing? ›

Benefits
  • Easy to set up and use immediately.
  • Easy to access remotely (e.g. on any internet-connected device like a computer, laptop or mobile phone, easy access for working-from-home models).
  • Easy to share access with multiple staff members in the work environment and remotely.
6 days ago

What is the 5 advantages of cloud computing? ›

Other Important Benefits of Cloud Computing

Offers Resilient Computing. Fast and effective virtualization. Provide you low-cost software. Offers advanced online security.

What are the 4 types of cloud computing? ›

There are four main types of cloud computing: private clouds, public clouds, hybrid clouds, and multiclouds. There are also three main types of cloud computing services: Infrastructure-as-a-Service (IaaS), Platforms-as-a-Service (PaaS), and Software-as-a-Service (SaaS).

What is an example of cloud computing? ›

Examples would include: Dropbox, a file storage and sharing system. Microsoft Azure, which offers backup and disaster recovery services, hosting, and more. Rackspace, which offers data, security, and infrastructure services.

What is cloud in simple terms? ›

In the simplest terms, cloud computing means storing and accessing data and programs over the internet instead of your computer's hard drive. (The PCMag Encyclopedia defines it succinctly as "hardware and software services from a provider on the internet.") Ultimately, the "cloud" is just a metaphor for the internet.

What are the three types of cloud computing? ›

Types of Cloud Computing
  • Infrastructure as a Service (IaaS) ...
  • Platform as a Service (PaaS) ...
  • Software as a Service (SaaS)

What are 5 key terms that describe cloud computing? ›

Cloud Computing Key Terms, Explained
  • XaaS (Anything-as-a-Service) This is a generic term which refers to any service which is available as cloud enabled service through internet. ...
  • Software-as-a-Service (SaaS) ...
  • Platform-as-a-Service (PaaS) ...
  • Infrastructure-as-a-Service (IaaS) ...
  • Public Cloud. ...
  • Private Cloud. ...
  • Hybrid Cloud.
9 Jun 2016

Why is it called cloud computing? ›

Cloud computing can also be thought of as utility computing or on-demand computing. The name cloud computing was inspired by the cloud symbol that's often used to represent the internet in flowcharts and diagrams.

Who benefits the most from cloud computing? ›

10 Industries That Can Benefit from the Cloud
  • Automotive. The automotive industry relies heavily on constant availability of data. ...
  • Education. The cloud is proving to be an invaluable solution for schools. ...
  • Financial. ...
  • Healthcare. ...
  • Insurance. ...
  • Hospitality. ...
  • Production. ...
  • Real Estate.

What are the risks in cloud computing? ›

8 Common Risks of Cloud Computing
  • The impact on a business return on investment (ROI) ...
  • Compatibility. ...
  • Trust. ...
  • Confidentiality. ...
  • Compliance. ...
  • Security. ...
  • Lack of control over performance. ...
  • Lack of control over quality.

What are 3 disadvantages of cloud computing? ›

The cloud, like any other IT set-up, can experience technical problems such as reboots, network outages and downtime. These events can incapacitate business operations and processes, and can be damaging to business. You should plan for cloud downtime and business continuity.

Why cloud computing is the future? ›

Cloud technology allows businesses to scale and adapt quickly, accelerating innovation, driving business agility, streamlining operations and lowering costs. This will not only help companies get through the current crisis, but it could also contribute to improved, long-term growth.

What are two positives of cloud computing? ›

12 Benefits of Cloud Computing
  • Cost Savings.
  • Security.
  • Flexibility.
  • Mobility.
  • Insight.
  • Increased Collaboration.
  • Quality Control.
  • Disaster Recovery.

Who is the father of cloud computing? ›

Who is the father of cloud computing technology? The answer to this trivia night question is American computer scientist J.C.R. Licklider. In the late 1960s, he envisioned a world where everyone would be connected with the ability to access specific programs and data regardless of where the access point was located.

What are the two main areas of a cloud computing system? ›

For example, online files or photos sharing via iCloud or Google Drive is one of the many forms of Cloud services. Cloud Computing can be divided into two parts: The Cloud and the Computing. “The Cloud” is the deployment model of the Cloud strategy. While “the Computing” is the service model of the Cloud strategy.

What is the most common type of cloud computing? ›

Type 1: Software as a Service (SaaS)

With Software as a Service, or SaaS (pronounced s-ah-s) you're running a traditional application in the public cloud and accessing it over the public internet. This is the most common type because everyone uses it.

Is WhatsApp a cloud? ›

Emails, calendars, Skype, and WhatsApp are cloud computing examples that we use every single day. They make use of the cloud feature of remote accessibility of data to support our data in the cloud infrastructure, helping us access them thru the Internet anytime, anywhere.

Is Netflix an example of cloud computing? ›

Netflix is one example of an organization using the cloud. By running on AWS, it provided billions hours of service to customers around the globe.

Where is cloud data stored? ›

Data Centre Storage

They are not floating around in cyberspace. Cloud space exists on individual servers found at data centres and server farms around the world. Data centre and collocation providers offer server space for cloud computing. It is easy to illustrate how we handle this by creating a fictional scenario.

What are the pros and cons of cloud computing? ›

A list of advantages and disadvantages of cloud computing:
Advantages of CloudDisadvantages of Cloud
No administrative or management stressLimited control of infrastructure
Easy accessibilityRestricted or limited flexibility
Pay-per-useOngoing costs
ReliabilitySecurity
7 more rows
8 Jul 2016

What are the basic knowledge of cloud computing? ›

As a cloud computing professional, you'll need to have proper programming skills because you'll be working with several programming languages. Cloud computing professionals use multiple programming languages including Java, PHP, Python, and . NET.

What are the 4 essential characteristics of cloud computing? ›

This cloud model is composed of five essential characteristics:
  • On-demand self-service.
  • Broad network access.
  • Resource pooling.
  • Rapid elasticity.
  • Measured Service.

What are the features of cloud computing? ›

Top 10 features of Cloud Computers:
  • Self-service On-Demand.
  • Resources Pooling.
  • Easy Maintenance.
  • Economical.
  • Rapid Elasticity and Scalability.
  • Efficient Reporting services.
  • Automation.
  • Security.
18 Sept 2022

What is a cloud made of? ›

Clouds appear when there is too much water vapour for the air to hold. The water vapour (gas) then condenses to form tiny water droplets (liquid), and it is the water that makes the cloud visible. These droplets are so small that they stay suspended in the air.

Which company has the best cloud? ›

Top CC Companies
  • 1) Amazon Web Services. Among the top cloud computing companies is AWS, which is growing and innovating its products without any sign of complacency. ...
  • 2) Microsoft Azure. ...
  • 3) Google Cloud Platform. ...
  • 4) IBM Cloud. ...
  • 5) Oracle. ...
  • 6) VMware. ...
  • 7) Salesforce. ...
  • 8) Alibaba.
27 Sept 2022

What are the 4 benefits of cloud computing? ›

Cloud computing offers modern businesses flexibility, efficiency, scalability, security, increased collaboration and reduced costs. While the COVID-19 pandemic has accelerated cloud adoption, the reliance on cloud technologies is set to continue in 2022, especially with hybrid work taking center stage.

Who should use cloud computing? ›

1. Cloud computing is flexible. Cloud-based services are ideal for businesses with growing or fluctuating bandwidth demands. If your needs increase, it's easy to scale up your cloud capacity, drawing on the service's remote servers.

What is the main disadvantage of cloud computing? ›

Downtime. Downtime is considered as one of the biggest potential downsides of using Cloud Computing. The cloud providers may sometimes face technical outages that can happen due to various reasons, such as loss of power, low Internet connectivity, data centers going out of service for maintenance, etc.

What is the main disadvantage to cloud services? ›

Downtime is often cited as one of the biggest cloud computing disadvantages. Since cloud computing systems are internet-based, service outages are always an unfortunate possibility and can occur for any reason. Can your business afford the impacts of an outage or slowdown?

Why is cloud computing important for the future? ›

With cloud computing, resources are available in minutes, which means companies can respond to new market developments much more rapidly. Dovetailed with the inherent agility of cloud resources is DevOps, which realigns software development and deployment to create continuous integration and continuous delivery.

What are the examples of cloud computing? ›

5 Real-World Examples of Cloud Computing
  • Ex: Dropbox, Gmail, Facebook.
  • Ex: Maropost for Marketing, Hubspot, Adobe Marketing Cloud.
  • Ex: SlideRocket, Ratatype, Amazon Web Services.
  • Ex: ClearDATA, Dell's Secure Healthcare Cloud, IBM Cloud.
  • Uses: IT consolidation, shared services, citizen services.

What are types of cloud computing? ›

Types of Cloud Computing
  • Infrastructure as a Service (IaaS) ...
  • Platform as a Service (PaaS) ...
  • Software as a Service (SaaS)

What is most important for cloud computing? ›

The ability to pool resources is one of the essential characteristics of cloud computing. Resource pooling in cloud computing refers to the power of a cloud service provider to share resources across several customers. Each receives a unique set of services tailored to their specific needs.

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