Cloud computing has gained traction across industries and continents. It offers a host of computing services, such as servers, networking, and storage options, on the cloud. If you are a business operator, a cloud computing solution can streamline and make your business processes smooth and scalable. Cloud computing has many benefits, including productivity, global reach, economic benefits, and security.
As per a report, the cloud computing market is expected to reach a whopping $947.3 billion by 2026. Amazingly, 94% of companies rely on public cloud services, while 84% use private cloud services. Gartner’s report observes that by 2028, cloud computing services will become a necessity for every business type or company. Cloud computing includes IaaS, PaaS, SaaS, and Serverless.

Basics of Cloud Computing. What is Cloud Technology?
Cloud computing is a term for delivering hosted services over the Internet. In simple language, it means storing and accessing files and programs in the cloud while eliminating the need to use physical hardware and direct management by the user. In other words, with cloud computing services, users can access their files and documents everywhere (not just on the computer where the data originated) as the data is on a network of hosted servers that transmit data over the Internet.
The cost of owning and managing IT infrastructure and data services is enormous. Maintaining the infrastructure alone requires a heavy hardware, software, and database investment. And since many companies consider that very expensive, they choose to store their data in the cloud and pay for cloud computing services like storage, networking, software, servers, business intelligence, and analytics on a pay-as-you-go basis. Through this cloud computing process, they avoid the complexity and cost of running and maintaining their own data centers or IT infrastructure.
Why is It Called Cloud Computing? A Historical Flashback
The word “cloud” stands for the Internet. If a company moves to the cloud, its data and IT infrastructure are stored at a centralized data center and maintained by a cloud computing service provider. This also means that the location of the hardware, the operating system it runs on, and the server are not crucial to the user. That was why the concept of the “cloud” was borrowed from old telecoms networks, where the location didn't matter, and the public telephone network was simply represented as a cloud of stuff.
In the past, the concept of cloud computing was unknown; users had to create and save files on a physical hard drive, floppy disks, or USB drives, and without those hardware components, the data was inaccessible.
The historical concept of cloud computing can be traced back to the 1960s, to an American computer scientist named J.C.R. Licklider. Licklider envisioned a world where everybody was connected through computers and could access data and every other program regardless of the location of the access point.
This vision, the “Intergalactic Computer Network,” widely known as the “predecessor of the Internet,” led to the birth of the Advanced Research Projects Agency Network (ARPANET). This was the first network that allowed computers to share digital files even when they were not physically in the same location.
However, Professor Ramnath Chellappa of Emory University's Goizueta Business School coined “cloud computing” in 1997. He was the first to define cloud computing while delivering a talk on “The new computing paradigm”. He described it as a new “computing paradigm, where the boundaries of computing will be determined by economic rationale, rather than technical limits alone.”

Emergence of Cloud Computing
Cloud computing services began to gain popularity in the 1990s when companies gradually started understanding their usefulness and the services that could be rendered with them. The most popular company that successfully adopted cloud computing back then was Salesforce. In 1999, Salesforce pioneered delivering software programs to end-users via the Internet. Any end-user with internet access could then access and download these software programs. Companies could buy only the software they needed cost-effectively without leaving the office.
By the early 2000s, Amazon launched its web-based retail services. In 2006, they also launched Amazon Web Services, Amazon's Infrastructure as a Service (IaaS) arm. With the launch, the company started offering online services to other companies like Elastic Compute Cloud (EC2) and Amazon Mechanical Turk, which provides many cloud-based services like computation, human intelligence, and storage.
That same year, Google launched Google Docs, compatible with Microsoft Word, and Google Spreadsheets, compatible with Microsoft Excel. With Google Docs, users can create, edit, and save documents in the cloud. With Google Spreadsheets, they can create, edit, and update spreadsheets and equally share the data online. In 2012, they launched Google Drive.
Soon enough, other major players like Microsoft (Azure) and Apple (iCloud) started hosting on the cloud and selling end-users the rights to store data on their networks and to use their cloud services. With time, they began creating ecosystems that communicate between programs and devices. A good example is how a song is automatically synced to the iTunes software on an iPhone as soon as it is downloaded.
How Does Cloud Computing Work?
To understand how cloud computing works, you first have to understand the cloud computing infrastructure. The cloud is a decentralized place where satellite networks are used to share information. It is a metaphor for the Internet. Every application in the cloud is hosted by a company, which is responsible for maintaining the massive data centers where users' information is hosted.
The cloud computing solution company provides the hosting, maintenance, data backup, networking, storage, and maintenance of a centralized data center. Many cloud computing services have different modes of operation. However, they all have browser-based dashboards where the resources needed to work with cloud services are provided. Through these cloud computing dashboards, clients can easily access the databases, servers, storage, and other application services they need over the Internet.
To understand how it works, we will be dividing cloud computing into two parts:
Front End Solution
The front end includes computer networks, PCs, smartphones, tablets, applications, and everything else that helps users access the cloud computing system. It is the section of cloud computing where a client can access the data stored in the cloud using cloud computing software or an internet browser.
Back End Solution
The back end is the primary component of cloud computing. It includes servers, databases, central servers, data storage systems, programs, and every other component that helps to store data and information securely and executes all requests made by a client. Conversely, the central server uses software known as “middleware” to ensure seamless connectivity between the devices linked through cloud computing. It facilitates operations by following protocols, which are just rules.
Through the back end, cloud computing service providers do their best to prevent data breaches, data losses, and reduce security threats by maintaining multiple copies of the data that users store in the front end.

Cloud computing architecture. This is how a cloud computing model works.
Top 5 Uses of Cloud Computing
As technology advances, cloud computing is now indispensable for communication and collaboration across distributed teams. From Google Cloud to Azure and even Amazon Web Services, many companies are adopting cloud computing to optimize resources, increase flexibility, and, most importantly, reduce cost.

Here are the five uses of cloud computing:
1. Communication
Cloud computing provides video-conferencing application services in the cloud through which you can host meetings, share your screen, and even make presentations smoothly. Applications like Zoom and Skype, plus the entire Google Suite of applications like Google Meet and Calendar, are all cloud-based. These applications help people and businesses collaborate and communicate globally.
In addition, social media applications like WhatsApp, Instagram, Twitter, Facebook, YouTube, and LinkedIn all use cloud computing to connect users and share videos, stories, experiences, and images in real time.
2. Data Analytics
Before the advent of cloud computing, employing big data to study patterns and insights was expensive and complex. Cloud computing changed that by offering many solutions for big data analytics. First, through cloud computing, companies no longer need to use their in-house development resources when they want to compile and analyze data.
Instead, they can collect as much data from all the sources available to them, connect the data to the cloud, analyze it, and get insights in real-time. This can help you make business decisions swiftly. Secondly, cloud platforms offer unlimited storage to users so they can gather insights like sensor data, search and site navigation routes, customer shopping habits, etc.
This means that even if you are not ready to use the data, you can gather it and store it for later use since the storage capacity is unlimited. Furthermore, with the advent of the cloud, companies can now use tools like data lakes, data warehousing, and extract, transform, and load (ETL) to store and process both their structured and unstructured data.
Lastly, cloud computing has many offerings for machine learning (ML) and artificial intelligence (AI) that can help you generate business value from a large quantity of data by finding patterns in it. The insights you get from this data can help with equipment and cost optimization, marketing and customer experience improvement, and, above all, driving business growth.
3. Entertainment & Gaming
Besides its efficiency and flexibility, cloud computing is also very beneficial because of its scalability. Today, a combination of highly improved internet speed and media streaming industry giants like Spotify, Tidal, Hulu, Disney Hotstar, Amazon Prime, and Netflix dominate the entertainment industry by employing cloud computing processes.
Netflix alone has an enormous database of movies available in the cloud for its consumers. After migrating its database to the cloud, the company has been able to onboard more customers, produce more content, reduce storage in real time, and easily handle sharp usage spikes when new episodes are made available.
Cloud computing services function vitally in the online gaming world, too. Many online games like Assassin’s Creed now enjoy a smooth and instant connection experience, which is only possible through cloud computing. With the cloud's high processing power, video games through PlayStation & Xbox can now run on remote servers and stream directly to a player's device. This process, called cloud gaming or gaming-as-a-service, shifts the processing weight from the devices to the cloud and allows players to play without downloading the games to their consoles or devices.
4. Data Backup & Recovery
Cloud computing provides a solution to the problem of data loss and recovery. Many computer owners have experienced the pain and stress of losing valuable files and data stored on physical hard drives. But with cloud computing, you can easily have accessible backup solutions to keep your files safe, whether family photos, term papers, or company files.
Cloud computing also makes disaster recovery cost-effective and very fast. You can prevent a disaster in one of your data centers by switching to a different one. It is so easy that you must pick the backup you wish to restore and click a button. Cloud backups are safe with 256-bit encryption and SAAE-18 compliant.
5. Data Storage & Management
Cloud computing enables you to store your files securely in the cloud as a backup in case there is a fire breakout, equipment malfunction, ransomware attack, or natural disaster. In addition, storing your data in the cloud will make it accessible anywhere, anytime, to whomever you wish. This aspect of cloud computing has proven to be very helpful to most organizations since the pandemic, as many workers now have a remote working culture. These are some of the top cloud computing advantages for businesses.
Advantages & Disadvantages of Cloud Computing
Here is a table of the advantages and disadvantages of cloud computing.
Cloud Computing | |
---|---|
Advantages | Disadvantages |
Competitive Edge | Internet connection |
With cloud computing, you have a strategic edge over competitors. You can access recent apps without spending money and time on installations. | No matter how good your cloud computing provider's services are, your ability to make the most of the service and access your data is dependent on your internet connectivity. If the internet is experiencing downtime, your cloud business operations will come to a halt. |
High Speed Option | Technical Problems |
With a few clicks, you can quickly deploy the service, allowing you to access the resources you need quickly. | Like any other IT setup, your cloud service provider could experience a power outage or other service maintenance issues, like reboots and upgrade downtime. Despite having high maintenance standards, even the most efficient service provider may face these kinds of technical problems from time to time. These issues could cause downtime and incapacitate your business operations. |
Data Backup & Restore | Security Risks |
As soon as your data is online, you can easily backup and recover it. If you were using an on-premise system, this process would take a lot of time. | One significant disadvantage of using cloud services is the security risks involved. Cloud computing means you are sharing your company's sensitive information with a third-party cloud service provider, which hackers could access. |
Unlimited Storage Option | Limited User Control |
Cloud computing offers large storage space that can be expanded when needed. Depending on your service provider, you only need to pay a small monthly or annual fee to enjoy unlimited storage. | You have little or no control over a cloud infrastructure as a cloud user. The cloud service provider owns, manages, and monitors it directly, and the most you can do is manage the data and applications operated on the cloud. However, you won't be able to access the server shell or perform other key administrative tasks. |
Safe & Secure | Vendor Lock-in |
Though the cloud is susceptible to cyber attacks, there are cloud service providers that use robust cloud solutions. Their cloud data transmission is end-to-end encrypted during information travel. Many cloud providers adhere to rules and regulations safeguarding sensitive data and avoiding data leakage or attack. | Moving from one vendor to another can be cumbersome, a huge disadvantage of cloud computing. Different vendors operate on various platforms, and moving from one cloud to another may be difficult and complex. |
Understanding the Difference b/w Cloud Computing & Traditional Computing
Cloud Computing | Traditional Computing | |
---|---|---|
Architectural Position | Cloud computing works on servers that external hosts facilitate. Cloud computing apps are based on infrastructure development. They utilize theories of user interface and automation. | Traditional computing takes place on physical hard drives and website servers. The concept of automation is not applicable. |
Costing | Unlike conventional computing, the cloud service provider operates and maintains the cloud server. This means that companies can save more by not purchasing costly equipment. | Traditional computing costs more than cloud computing because maintaining physical data centers and a constant technical team is extremely expensive. |
Security Factor | Cloud servers have several security layers, but they are not cyberattack-proof. Hackers can access the server and steal information. | Traditional computing has security concerns just like cloud computing solutions. Hackers can get access to on-premise software through various digital attack methods. |
Availability Factor | Cloud computing offers improved features and customary updates, which enable users to maintain their businesses cost-effectively. Even if problems occur, they can be fixed quickly. | Traditional applications require manual scripting; if something goes wrong, a programmer must review all the lines of code before deploying the software. |
What Are The Components of Cloud Computing Technologies?
A cloud computing system comprises platforms such as the back end, front end, and mode of delivery that the network uses. The main components are SaaS, PaaS, and IaaS, which we will discuss. However, other categories make up the architecture of cloud computing.

1. Information-as-a-Service (IaaS)
It is a cloud computing model where cloud services are offered on demand, such as networking, storage, and backup. This component enables users to access information from anywhere. The information is fetched remotely. It may include online news, credit card validation, internet banking, real-time stock prices, etc.
2. Platform-as-a-Service (PaaS)
This component enables the development of applications. It is where the database is created, implemented, tested, and stored. It also allows the development of enterprise-based applications. For example, Microsoft Azure Application Service.
3. Database-as-a-Service (DaaS)
It works like the physical database, only that this component is live and functions remotely. The main objective of the service is to provide cheaper database services using different hardware and software.
4. Application-as-a-Service (AaaS)
This is an already built application that end-users can utilize when they connect to the Internet. Examples of applications are Google Calendar, Gmail, and Salesforce.
5. Storage-as-a-Service (SaaS)
As the name implies‚ it is the component for storage, also known as “on-demand disk space”. Other components use this service as their base component.
6. Process-as-a-Service (PaaS)
This cloud model combines different resources, such as services and data. It can be hosted remotely or within similar cloud-computing resources. It is mainly used for business processes that require the combination of information and key services to formulate a process. An example of this component is a mobile network, where users need the service provider to send internet settings as an SMS to activate the network.
7. Security-as-a-Service (SaaS)
Many customers need this service because we cannot discuss cloud computing without expressing concerns about data security. Anyone who decides to use a cloud-based service needs security, as all operations and data are handled remotely.
8. Integration-as-a-Service (IaaS)
Here, an already built application is integrated with several other applications. Hence, it serves as a mediator between local machines and remote servers. It fetches stacks from the cloud and communicates with the local machines. An example of this service is the integration of Google Maps in Salesforce.
9. Management-as-a-Service (MaaS)
This component helps manage the entire cloud environment, including downtimes, virtualization, and utilization of resources.
10. Infrastructure-as-a-Service (IaaS)
This component comprises the networking‚ services ‚ software‚ and completely virtual hardware. It serves as the basis for purchasing and processing all resources in the cloud. When you buy software online, you can't see the process, but everything is happening at the backend. Infrastructure-as-a-Service is the component that puts all the pieces together.
Why is Cloud Computing Becoming Very Important?
Most people use many cloud services even though they don't realize it. Google Drive, Facebook, Instagram, Gmail, and iCloud are all cloud-based applications in which users send their personal data to cloud-hosted servers, where the information is stored for later use.
Cloud computing is even more important for businesses, as many need to access a huge amount of data over a secure network on a daily basis. Businesses actively rely on cloud computing services, whether for communications or access to a huge amount of data and services.
Top 7 Benefits of Cloud Computing
Cloud computing helps businesses save costs and enhance productivity, among other benefits, so millions of companies are actively using it.

1. Cost-Effective Solution
Owning and maintaining a data center that supports all your business needs is very costly. It will require hiring staff, running upgrades and regular maintenance, and developing in-house solutions.
Transitioning to cloud-based services reduces the costs of maintaining and managing IT systems, as you do not have to buy expensive equipment and systems for your company. You will also reduce upfront expenses on energy, upgrading software and hardware, savings on hiring costs, and less downtime.
With cloud computing's pay-as-you-go option, businesses can efficiently optimize their budget and use only the services they need to grow, develop, and remain competitive without spending a lot. With cloud computing, you pay subscription fees only for your services. If you wish to stop using a particular service, you simply stop paying for it.
2. Better Security Measures
According to RapidScale, 94% of businesses saw an improvement in security after implementing cloud solutions. Also, 57% of companies using cloud solutions said it provided them with better data security. The data stored in these databases and transmitted over the network is encrypted, making it difficult for hackers or any unauthorized person to access the stored data.
This level of security associated with cloud hosting of data files and software programs minimizes the threat of cybercrime. Even if a computer is damaged or compromised by a virus, the company can still access its data with another device without the fear of losing sensitive data, as every document is saved in the cloud.
In addition, cloud computing makes it more difficult for bad elements to steal stored data. Some cloud computing hosting providers even offer firms secure portals that consist of comprehensive encryption and login security systems, making it almost impossible for anyone to steal stored data.
3. Business Continuity & Scalability
From ransomware attacks to natural disasters, if these disasters hit, most businesses could lose their data if it is not backed up in the clouds. Without cloud computing, it would be impossible for employees to access valuable data to ensure the business continues to run and scale. The remote work culture and adoption of digital technologies have allowed cloud computing to provide businesses with speed, productivity, continuity, and scalability in business operations. The cloud computing advantages pull businesses towards it.
4. Better Data Backup & Recovery
One of the most important reasons we need cloud computing today is the option of data backup and recovery. With cloud-based services‚ you can store your business data in the cloud, which has an integrated data backup and recovery process. This process keeps your data secure and protected from all emergency scenarios, ranging from power outages to natural disasters, physical theft, and cyber attacks.
In case of a disaster, you can easily recover your data just by the click of a button and resume operations at a moment's notice. When data is stored in the cloud, the cloud service provider splits it into encrypted fragments and distributes it across different remote data centers. This way, even if a problem is encountered in one of their servers, your data will remain safe on another server. And if a cybercriminal succeeds in stealing your data from one location, it will be useless, as your data is available on other data servers.
5. Anywhere, Anytime Access
According to a Statista report, over 6.3 billion people use smartphones globally. Cloud computing allows users to access corporate data using their smartphones, tablets, and PCs, ensuring that nobody is left out. This benefit allows employees who don't live close to the office to keep up to date with their co-workers and clients. This cloud computing feature allows information to be shared with freelancers, remote employees in different geographic locations, and staff who work from home.
6. Effective Communication
Unlike traditional methods of collaboration, cloud computing enables you to communicate with team members across the globe in real time. You do not need to be in the same location as your employees or contractors, as everyone involved in a particular project can access the same file through the cloud.
7. Automated Updates & Upgrades
Many cloud computing service providers include automatic updates in their fees. When you subscribe to their service, your system will be updated regularly with the latest technology, including upgrades to servers, up-to-date software versions, and computing power. With regular updates and upgrades, everyone can access relevant files remotely and work efficiently without interruptions, as the company is connected to the cloud.
Types of Cloud Computing You Should Know
Cloud computing can be divided into public, private, hybrid, and community cloud computing. Here are these types in detail:
Public Cloud Computing
In this type of cloud computing, the basic computing resources, including memory, storage, central processing unit (CPU), and network, are hosted in one of the data centers managed by the cloud service provider. Public clouds are usually scalable because they have lots of available space.
Public cloud service providers also offer managed services like security systems, applications, and database servers, which you can rent if you don't want to incur the cost of setting up and managing the solution. To access your resources, all you need is a device with a web browser and internet access. Companies like Microsoft Azure, Amazon Web Services (AWS), and Google Cloud Platform (GCP) offer public cloud computing services to users.
Public Cloud
Advantages | Disadvantages |
---|---|
Security & Data Recovery Public cloud vendors invest tens of billions in robust data centers with disaster recovery and security, ensuring uptime and data protection through redundancy. | Lack of Control The main disadvantage of using the public cloud is that the operating system and IT infrastructure are under the full control of the cloud service provider. If the vendor makes a significant change in their business model or, worse still, goes out of business, you will have no choice but to start making infrastructure changes on short notice. |
Less Capital Expense In the public cloud, cloud service providers own, host, and maintain the hardware. Customers don't have to buy or maintain the hardware that makes up their public cloud IT infrastructure. This type of cloud computing comes with a pay-as-you-go payment structure that allows consumers to pay only for what they consume. Businesses can scale and grow as needed, saving a lot of money. | Security Risk Factors Another disadvantage of using the public cloud is the risk of vulnerability in the cloud architecture that comes from unpatched security. If left unchecked, this vulnerability can expose your company to unnecessary risks and make it prone to hackers. |
Private Cloud Computing
Unlike public clouds, private clouds are owned and utilized by a single organization. These customers get dedicated infrastructure that is not shared with anyone else. In the same way, the organization involved bears the cost alone. The cloud service provider does not provide any cloud management service here; instead, the user maintains the private cloud.
Advantages & Disadvantages of Private Cloud Computing:
Private Cloud
Advantages | Disadvantages |
---|---|
Better Control With the private cloud, you can control the environment. You can design your cloud computing approach to meet your internal processes and preferences. And since you control the cloud and not an outside vendor, there is no risk of your company's infrastructure being disrupted by any sudden change. | Not Versatile Private clouds do not have the versatility associated with public clouds. Scaling operations quickly in a private cloud is difficult. Before any expansion occurs, more hardware and storage capacity must be added to the system, which means more cost. |
Robust Security Measures Private clouds come with tight security regulations. Using a private cloud makes it easy to restrict access to your valuable assets. Moreover, you can easily move your data, programs, and applications wherever you want, whenever you want. | High Maintenance Cost Although using a private cloud has many benefits, it comes at a high cost. The company that owns the private cloud hosts and maintains the software and hardware, and it is not economical at all. |
Hybrid Cloud Computing
A hybrid cloud combines private and public clouds. The two platforms are designed to interact and allow applications and data to move seamlessly between them. If a company needs a bit of public cloud and a bit of private cloud, the hybrid cloud option is its best bet. With a hybrid cloud, an organization can process its data on its premises and still use the almost unlimited storage capacity that the public cloud offers.
This model is usually employed by organizations whose on-site infrastructure needs to scale to meet their fluctuating business demands. This way, they can enjoy the processing power that comes from using the public cloud while enjoying the control that comes from keeping their sensitive data on their private cloud.
Advantages & Disadvantages of Hybrid Cloud Computing:
Hybrid Cloud
Advantages | Disadvantages |
---|---|
The main advantage is that a hybrid cloud solution offers businesses the best of both worlds. This type of cloud computing gives you the control and security of using a private cloud while still providing you with the scalable computing power that public clouds offer. Also, companies can safely store their data behind the encryption protocols and firewalls of the private cloud and still move it to a public cloud environment whenever necessary. | Communicating and sharing data between a public and private server comes with potential security and performance risks. To mitigate these, you must ensure that your cloud service provider is knowledgeable and experienced with the hybrid cloud computing model. |
Community Cloud Computing
A community cloud is a private cloud that functions as a public cloud. Its infrastructure is designed for exclusive use by a specific community of users from organizations that want to share the same applications. Although these users operate within the same industry in different organizations, concerns like compliance, security, and performance are common. Financial service firms, healthcare organizations, government agencies, and other professional bodies mainly use this model.
Advantages & Disadvantages of Community Cloud Computing:
Community Cloud
Advantages | Disadvantages |
---|---|
flexible Even though the community cloud comes with a shared space, the system is still very flexible. Each organization can still set access controls and adjust the system to meet its demands. | Since the cloud is shared across organizations, servers would have to adjust to the different demands of the organizations using the shared storage, which can lead to performance and prioritization issues. |
Industry Compliant Organizations that use this cloud computing model usually have common security needs. Because of this, all users collaborate to monitor industry regulations, and any decisions to effect changes to the system are made in the best interests of all group members. |
What Are The Characteristics of Cloud Computing?

1.Resources Pooling
This simply means that a cloud service provider's computing resources are shared to serve an aggregate of consumers, providing each one with virtual and physical resources allotted and re-allocated dynamically according to each consumer's requirements.
A multi-client pattern is employed for processing, data storage, and overall network bandwidth provision services. The cloud service provider allocates these resources in real time without conflicting with the client's experience.
2. On-Demand Service
This is one of the most essential characteristics of Cloud Computing services. This feature enables consumers to constantly monitor computing potentialities like server uptime and allotted network storage, and control computing abilities based on their needs without interacting with each cloud service provider.
3. Economical Solution
Cloud computing helps organizations reduce their IT infrastructure costs. All they pay for is the administration space they use. Most cloud services are on a pay-as-you-go basis, so organizations don't need to spend a lot of their budget on IT infrastructure, as the cloud service provider maintains it for them.
4. Safe & Secure
Cloud services create multiple copies of stored data to prevent data loss. If one of the servers is damaged and loses the stored data, the copied versions will be restored to the other servers where they were saved. This way, even if a file suddenly gets corrupted, the data is still secure as the copied version will be restored.
5. Compatible Maintainable Solution
Cloud services can be accessed remotely. This means that users can access and utilize cloud resources anywhere they are with no geographic limitation or restriction. All they need is a device like a laptop, smartphone, tablet, or internet connection. Cloud computing resources are regularly updated so their potential can be fully optimized. Once updated, the devices will start performing faster.
6. Measurable & Reportable Services
Cloud computing systems allow both consumers and providers to measure and report the services being used and their purpose. This feature facilitates efficient monitoring and billing for resources like storage, bandwidth, memory, and processing, and ensures that these resources are used optimally.
3 Types of Cloud Computing Services
There are three types of cloud computing services you should know. Here are those:
1. Software-as-a-Service (SaaS)
SaaS in cloud computing means a fully developed software solution ready to be bought and used on a subscription basis over the Internet to meet various business needs, such as market automation, customer relationship management (CRM), or business analytics. It is the most common form of cloud computing service. Most people use it daily, even though they don't understand it.
Although some SaaS programs are free, many require an annual or monthly subscription before you can use them. Once you subscribe to a SaaS service, the service provider manages the operating systems, middleware, infrastructure, and data needed to deliver the program. Most SaaS applications do not require downloads, installations, or management, as they run directly on web browsers. This allows organizations to streamline their operations with multi-cloud and hybrid deployments.
Examples of SaaS are Salesforce, Google Docs, Dropbox, Cisco WebEx, and Microsoft 365.
2. Platform-as-a-Service (PaaS)
Platform as a Service (PaaS) refers to the supply of the tools needed to develop, test, deliver, and manage software applications. It provides computing and storage infrastructure plus a development platform layer that contains database management systems, web servers, and software development kits (SDKs).
Companies that develop web-based applications, mobile apps, and software find it very helpful because setting up the underlying infrastructure of servers and purchasing the storage network and databases can be costly. However, by using Platform as a Service, these companies can access the development tools they need without buying them.
Examples of PaaS are Google App Engine, AWS, and Microsoft Azure.
3. Infrastructure-as-a-Service (IaaS)
Infrastructure as a Service (IaaS) allows users to purchase, install, configure, and manage operating systems, business analytics applications, middleware, development tools, and any other software they need to use. Through it, users gain access to basic computing resources like data storage capacity, processing power, servers, and hardware in the cloud without the need for large physical infrastructure on the ground.
An IaaS provider manages the physical end of these infrastructures (like the data storage space and servers) in a data center. The provider also has the responsibility of continuously updating their system with the latest patches, making it easier for a company to run new applications and programs. It is the most flexible and comprehensive type of cloud computing service available and the fundamental platform for building new technologies.
Examples of IaaS are Digital Ocean & Amazon EC2.
Examples of Cloud Computing in Various Sectors
Example | Overview | |
---|---|---|
Healthcare |
| Cloud computing in healthcare can be applied to public and personal healthcare, bioinformatics, telemedicine, and e-health services. Doctors, nurses, and other medical professionals use cloud computing to host information, share and analyze it, and remotely perform diagnostics. This allows hospitals to give patients the best possible care with little or no delay, making healthcare more efficient and deliverable. Although many hospitals have yet to adopt cloud computing in their delivery systems, future forecasts predict that the health care sector will massively adopt cloud solutions. |
Government |
| Many governments are starting to adopt cloud computing in their operations. A good example is the United States government, which instituted the U.S. Federal Cloud Computing Strategy to accelerate the adoption of cloud services across all departments. This allows citizens to enjoy e-governance services and reduce congestion bottlenecks. The government, on the other hand, enjoys the use of standardized software, enhanced security, improved collaboration, and a reduced need for computing hardware. |
Businesses |
| Today's businesses need cloud services to access a secure environment and obtain real-time information about their prospects and customers. This information has become essential as effective marketing demands personalization. Customers want communication to be more human, and that can only be made possible through cloud computing. Through it, marketers can manage an extensive database, access client information precisely and quickly, and personalize their strategy. |
Educational Sector |
| Education has evolved dramatically in the past few decades. There are almost as many online classes as there are offline classes today. There is a multi-million audience interested in getting knowledge online. Such a broad audience will need significant technical resources from servers, and lots of hardware and software to provide them with video lectures and other educational materials.
|
Data Storage |
| Cloud storage service is vital for businesses because they need to store files and back up their data efficiently. There are many cloud storage providers today, and the number keeps increasing. Cloud storage providers like Dropbox offer users as much as one terabyte of free file storage space. Google Drive, on the other hand, offers up to 15 gigabytes of free storage space, while OneDrive offers 5 gigabytes. Facebook and Instagram are also examples of cloud computing in data storage. |
Companies That Are Using Cloud Computing Solutions
Apple Inc | EBay | PayPal |
NetFlix | Capital One | |
Coco-Cola | GameLoft | Fitbit |
Challenges of Cloud Computing: Points to Watch Out For

Security Risks
This is usually a top concern for investors in cloud services because your data is stored by an external vendor that you can't see. Whenever you get information about compromised credentials, broken authentication, data breaches, or account hacking in an organization, you get worked up.
Thankfully, cloud providers are now making efforts to improve their security. But you still need to be careful by verifying whether the service provider is implementing safe identity management system privacy protocols and database security. The more people access a cloud account, the more vulnerable it becomes. If someone hacks your account or gets hold of your password, they can access your information. However, organizations can use two-factor verification and other security measures to protect their passwords.
Cost Management Factors
With cloud computing, users can quickly access apps on the Internet without having to purchase, maintain, and manage costly software or hardware. The option is cost-effective, but tuning an organization's needs on a third-party site is challenging and more expensive. Also, moving data to a public cloud could be expensive, especially for small businesses or projects.
Lack of Skilled Professionals
As more people move their activities to the cloud, the need to improve cloud tools and manage the entire process arises. This explains why the labor market consistently demands people with IT skills. Some firms train their in-house staff to handle this challenge.
Internet Connection Availability
Cloud services require a high internet speed, which may not be readily available to most small businesses. Hence‚ small companies need to invest in good internet connections to prevent downtimes that might lead to business losses.
What Are The Threats to Cloud Computing?

1. Hijacking of Accounts
Many people have weak passwords, and as they use and reuse those weak passwords on different platforms, it becomes easy to access their data because one stolen password is a gateway to accessing different accounts.
Hijacking an account is a severe security threat as more people rely on cloud infrastructures. If a hacker has an employee's credentials, they can access sensitive data. Also, accessing a customer's credentials can give hackers access to a company's online account. The more troubling part is that most organizations have yet to learn how to identify threats and respond to them effectively.
2. Unauthorized Access
Cloud deployments are not within the company's immediate environment and can be accessed from the public Internet. Although staff members and customers can easily access them, an attacker can also. Issues like compromised credentials or improper security configuration enable hackers to have unauthorized access without the organization's knowledge.
3. Data Sharing (External)
Cloud computing makes it easy for people to share data. For example, you can invite team members to collaborate on a project by emailing or sharing a link. This idea facilitates remote work but is a significant threat to cloud computing. Using a link to share data is easier than inviting individual collaborators. However, anyone can access your data without your knowledge. Also, you cannot make your link accessible to only one recipient. That recipient can forward your link to other people.
What Are The Cloud Management Activities of Cloud Computing?

1. Auditing Backups
Backups should be audited at intervals to ensure that users' files are randomly restored. The service provider or the organization can carry out this task.
2. Lock-In Vendor
Managers are supposed to move their organizations' data from one server to another in case they decide to switch providers.
3. Knowledge of Security Procedures
Managers should know the service provider's security plans, especially encryption, employee screening policies, e-commerce processing, and multitenant use.
Monitoring, Scaling‚ Capacity‚ and Planning Abilities
Managers should know whether the service provider will meet their organization's demand soon and whether it can scale.
Audit Log Monitoring
Managers need to audit logs regularly to identify any errors in the system.
Testing and Validating Solutions
Testing cloud services is necessary to ensure they are functioning as planned. Verifying the test results leads to the creation of error-free solutions.
How Can Cloud Computing Help Financial Institutions?

Continuity Risk and Reduced Data
Cloud computing offers a valid alternative to outdated systems vulnerable to phishing. It has the potential to identify potential breaches with its embedded security that safeguards banking data. Cloud computing also provides backup for improving disaster recovery.
Greater Agility
Credit unions and banks that want to achieve more agility in business can utilize cloud technology to respond to dynamic market conditions instantly. They can also leverage applied analytics and real-time data to gain the benefits of operational productivity and customer experience. From allowing technology scalability to competitive dynamics, there are boundless opportunities.
Better Innovation
Cloud computing can shorten product development cycles. This will allow financial institutions to test products and react quickly to customers' responses.
Additionally, cloud computing facilitates the possibilities of open banking‚ thereby expanding the set of solutions available to customers across non-traditional and traditional financial services.
Improved Efficiency
Most financial institutions struggle to automate, streamline, and connect their back office to improve customer experiences. However, cloud technology could help aggregate operational systems and multiple data sources that impede efficiency. Therefore, the time spent searching for insights can be channeled to more impactful and productive analysis and decision-making.
Increasing Customer Insights
Businesses derive insights from their customers' data. These can only be obtained with high-level analytics, and the results provide a foundation for proactive engagement and personalization that is impossible when using legacy infrastructure.
With the availability of these insights in real time, banks can better understand how individual customers behave and what triggers actions that build loyalty, drive conversion, and increase engagement.
How to Choose the Right Cloud Computing Service Provider?
Choosing the right cloud computing provider can become a cumbersome task. Here are the points to consider:

1. Understand The Agreement, Terms & Conditions
One thing to look out for is when a company urges you to sign a contract you may not fully understand. That is a huge warning sign. A good company should take the time to help you understand the guidelines and what the contract covers. You should also know what the agreement does not cover, so that if anything breaks, you will know who should fix it.
Additionally, the company won't force you to sign a contract, especially when you are unsure of the details. Therefore, you must carefully read through and understand a document before agreeing to do business with a company.
2. Know the Security Measures
Security is a significant concern in the cloud. Hence, you need to find out how the company protects its clients' data. You can ask detailed questions about your use case, regulatory requirements, and industry.
Additionally, you should find out what area the company is responsible for, including your role in providing security for your information. Some security features are free, while others aren't. So, the company should tell you the extra paid services they provide and where a third-party app is necessary.
3. Understand System Management
Before selecting a cloud computing service provider for your business, you must consider the types of cloud platforms and what it takes to manage them. Each platform supports different tools, architecture, and integration with other services. If there are specific services that your business cannot do without, you need to be sure that the provider you use can integrate them easily. Otherwise, you should be ready to port to another service that supports them. You should also take time to find out how long your IT team will take to manage different aspects of the infrastructure before arriving at a decision.
4. Know the Costs Involved
Of course, this is not the most important point to consider, but we know that it plays a significant role in determining the service provider for your business. Different companies have different pricing structures, so you need to look at the associated costs alongside the sticker price. For instance, AWS utilizes a pay-as-you-go method, Google Cloud charges per second, and Azure bills on demand. Therefore, choose a provider according to your usage pattern.
Future of Cloud Computing: An Insight

Today, virtually everything can be connected to the cloud, opening a new world for platforms, services, applications, and jobs. The future of cloud computing is a combination of on-premise and cloud-based products, which gives rise to hybrid solutions. This modification is flexible and scalable, providing control and security for the data center.
1. Increase in the Creation of Safe Data Centers
The amount of data we generate these days is overwhelming. It is even becoming more difficult to store data safely. However, because many companies are subscribing to cloud computing, it is predicted that many data centers will be created. The competition will become even tougher as these centers will offer very low prices to attract more customers.
2. Modular Software Service
Individual programs and their complexity are increasing regularly. As a result, cloud technology may soon require advanced thinking. In the future, people may need to store data in other places apart from the cloud. Hence, modules would be required to store applications on the servers of different cloud services.
3. Better Internet Speed & Quality
IoT is helping to improve the quality of internet connectivity. When combined with cloud computing, data can be stored in the cloud to enhance analysis and performance. Hence, users should expect fast-loading applications and services. The network will be faster, and data transfer will be quicker.
4. Better Security Measures
Currently, data on the cloud is not completely secure because the companies providing the services may not offer proper security. Hence, cloud computing service providers should start exploring better security measures in the future.
Concluding Thoughts
Cloud computing is the future of businesses worldwide. Cloud services are necessary for any company to cut costs, safeguard data transmission, and streamline business workflows. However, despite its benefits and drawbacks, cloud computing remains the fastest-growing aspect of network-based computing. Traditional computing is already obsolete because with cloud computing you can access new applications quickly and enjoy frequent updates without buying and installing software. Cloud computing has a promising future, and it has come to stay. By now, you must not have been stuck on the question of cloud technology and its benefits. We have briefly explained every aspect of cloud computing services, advantages and challenges.
Frequently Asked Questions
What exactly is cloud computing?
Cloud computing is a software model in which users can access servers, networks, and storage over the Internet.
What are the 4 types of cloud computing?
The four types of cloud computing are Public cloud, private cloud, hybrid cloud, and community cloud computing.
What are the 3 basics of cloud computing?
The three basics of cloud computing are Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS).
What is cloud technology?
Cloud technology, also known as cloud computing, provides cloud services such as storage, networking, servers, databases, and software. You can use the services from anywhere, anytime with an active internet connection.
What are examples of cloud technologies?
Some of the examples of cloud technologies are Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, and Apple iCloud Services.
What is the cloud, and do I need it?
Cloud is a system where software and applications are hosted on the web using data centers and servers. If you want to scale your business, cloud computing services are essential for business workflow and cost-saving parameters.
What technology is used in the cloud?
Cloud computing technologies mainly work on automation, virtualization, and networking fundamentals. They rely on cloud services like SaaS, IaaS, and PaaS.