What Is Cloud Computing? Complete Guide[2024] Pros & Cons

What Is Cloud Computing?

Cloud computing is the on-demand delivery of computing services such as servers, storage, databases, networking, software, and analytics. Rather than keeping files on a proprietary hard drive or local storage device, cloud-based storage makes it possible to save remotely. Cloud computing is a popular option for people and businesses, allowing for cost savings, increased productivity, speed and efficiency, performance, and security.

KEY TAKEAWAYS

• Cloud computing is the on-demand delivery of computing services such as servers, storage, databases, networking, software, and analytics.
• Cloud-based storage makes it possible to save files to a remote source.
• Cloud data storage platforms include Google Drive, Dropbox, OneDrive, and Box.

Origins of cloud computing

The origins of cloud computing technology go back to the early 1960s when Dr. Joseph Carl Robnett Licklider (link resides outside ibm.com), an American computer scientist and psychologist known as the “father of cloud computing”, introduced the earliest ideas of global networking in a series of memos discussing an Intergalactic Computer Network. However, it wasn’t until the early 2000s that modern cloud infrastructure for business emerged.

In 2002, Amazon Web Services started cloud-based storage and computing services. In 2006, it introduced Elastic Compute Cloud (EC2), an offering that allowed users to rent virtual computers to run their applications. That same year, Google introduced the Google Apps suite (now called Google Workspace), a collection of SaaS productivity applications. In 2009, Microsoft started its first SaaS application, Microsoft Office 2011. Today, Gartner predicts worldwide end-user spending on the public cloud will total USD 679 billion and is projected to exceed USD 1 trillion in 2027 (link resides outside ibm.com).

Storing Data

Cloud computing means data is stored remotely in the cloud or a virtual space. Companies that provide cloud services enable users to keep files and applications on remote servers and access all data via the Internet. An individual’s or company’s data, work, and applications are available from any device that connects to the Internet.

Cloud computing can be both public and private. Public cloud services provide their services over the Internet for a fee. Private cloud services only provide services to a certain number of people. These services are a system of networks that supply hosted services. There is also a hybrid option, which combines public and private services.

Cloud Services

• Email
• Storage, backup, and data retrieval
• Creating and testing apps
• Data Analytics
• Audio and video streaming
• Delivering software on demand

Platforms

Cloud computing is a system primarily comprised of three services: software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS).

1. Software-as-a-service (SaaS) involves the licensure of a software application to customers. Licenses are typically provided through a pay-as-you-go model or on-demand. This type of system can be found in Microsoft Office 365.
2. Infrastructure-as-a-service (IaaS) delivers everything from operating systems to servers and storage through IP-based connectivity as part of an on-demand service. Clients do not need to purchase software or servers and instead procure these resources in an outsourced, on-demand service. Popular examples of the IaaS system include IBM Cloud and Microsoft Azure.
3. Platform-as-a-service (PaaS) is considered the most complex of the three layers of cloud-based computing. PaaS shares some similarities with SaaS, but instead of delivering software online, it is a platform for creating software delivered via the Internet. This model includes platforms like Salesforce.com and Heroku.

How does cloud computing work?

Cloud computing lets client devices access rented computing resources, such as data, analytics and cloud applications over the internet. It relies on a network of remote data centers, servers and storage systems that are owned and operated by cloud service providers. The providers are responsible for ensuring the storage capacity, security and computing power needed to maintain the data users send to the cloud.

Pros and Cons

Thanks to cloud computing, users can check their email on any computer and store files using services such as Dropbox and Google Drive. Cloud computing lets users back up their music, files, and photos. Companies were once required to purchase, construct, and maintain costly information management technology and infrastructure. Companies can swap costly server centers and IT departments for fast Internet connections, where employees interact with the cloud online to complete their tasks.

The cloud structure saves storage space on desktops or laptops. It also lets users upgrade software via the web rather than through more traditional, tangible methods involving discs or flash drives. However, security is a concern, especially for medical records and financial information.

While regulations force cloud computing services to shore up their security and compliance measures, it remains an ongoing issue. Encryption is commonly used to protect vital information. Servers maintained by cloud computing companies may fall victim to natural disasters, internal bugs, and power outages. As with any technology, with many individuals accessing and manipulating information through a single portal, mistakes can transfer across an entire system.

Types of Cloud Computing

Cloud computing can either be classified based on the deployment model or the type of service. Based on the specific deployment model, we can classify cloud as public, private, and hybrid cloud. At the same time, it can be classified as infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) based on the service the cloud model offers.

Private cloud

In a private cloud, the computing services are offered over a private IT network for the dedicated use of a single organization. Also termed internal, enterprise, or corporate cloud, a private cloud is usually managed via internal resources and is not accessible to anyone outside the organization. Private cloud computing provides all the benefits of a public cloud, such as self-service, scalability, and elasticity, along with additional control, security, and customization.

Private clouds provide a higher level of security through company firewalls and internal hosting to ensure that an organization’s sensitive data is not accessible to third-party providers. The drawback of private cloud, however, is that the organization becomes responsible for all the management and maintenance of the data centers, which can prove to be quite resource-intensive.

Public cloud

Public cloud refers to computing services offered by third-party providers over the internet. Unlike private cloud, the services on public cloud are available to anyone who wants to use or purchase them. These services could be free or sold on-demand, where users only have to pay per usage for the CPU cycles, storage, or bandwidth they consume.

Public clouds can help businesses save on purchasing, managing, and maintaining on-premises infrastructure since the cloud service provider is responsible for managing the system. They also offer scalable RAM and flexible bandwidth, making it easier for businesses to scale their storage needs.

Hybrid cloud

Hybrid cloud uses a combination of public and private cloud features. The “best of both worlds” cloud model allows a shift of workloads between private and public clouds as the computing and cost requirements change. When the demand for computing and processing fluctuates, hybrid cloudOpens a new window  allows businesses to scale their on-premises infrastructure up to the public cloud to handle the overflow while ensuring that no third-party data centers have access to their data.

In a hybrid cloud model, companies only pay for the resources they use temporarily instead of purchasing and maintaining resources that may not be used for an extended period. In short, a hybrid cloud offers the benefits of a public cloud without its security risks.

Infrastructure as a service (IaaS)

Infrastructure as a service or IaaS is a type of cloud computing in which a service provider is responsible for providing servers, storage, and networking over a virtual interface. In this service, the user doesn’t need to manage the cloud infrastructure but has control over the storage, operating systems, and deployed applications.

Instead of the user, a third-party vendor hosts the hardware, software, servers, storage, and other infrastructure components. The vendor also hosts the user’s applications and maintains a backup. 

Platform as a service (PaaS)

Platform as a service or PaaS is a type of cloud computing that provides a development and deployment environment in cloud that allows users to develop and run applications without the complexity of building or maintaining the infrastructure. It provides users with resources to develop cloud-based applications. In this type of service, a user purchases the resources from a vendor on a pay-as-you-go basis and can access them over a secure connection.

PaaS doesn’t require users to manage the underlying infrastructure, i.e., the network, servers, operating systems, or storage, but gives them control over the deployed applications. This allows organizations to focus on the deployment and management of their applications by freeing them of the responsibility of software maintenance, planning, and resource procurement. 

Software as a service (SaaS)

SaaS or software as a service allows users to access a vendor’s software on cloud on a subscription basis. In this type of cloud computing, users don’t need to install or download applications on their local devices. Instead, the applications are located on a remote cloud network that can be directly accessed through the web or an API.

In the SaaS model, the service provider manages all the hardware, middleware, application software, and security. Also referred to as ‘hosted software’ or ‘on-demand software’, SaaS makes it easy for enterprises to streamline their maintenance and support. 

Service Providers

• Google Cloud
• Amazon Web Services (AWS)
• Microsoft Azure
• IBM Cloud
• Alibaba Cloud
• Dell Cloud
• Oracle Cloud

Amazon Web Services is 100% public and includes a pay-as-you-go, outsourced model. Once on the platform users can sign up for apps and additional services. Microsoft Azure allows clients to keep some data at their sites. Meanwhile, Alibaba Cloud is a subsidiary of the Alibaba Group.

Key Benefits and Challenges for Enterprises

The most important reason why cloud computing is growing rapidly is the various benefits it offers. It saves businesses the time and resources required to set up full-fledged physical IT infrastructure. Let’s look at all the benefits cloud offers:

• Reduced costs: Maintaining IT systems requires big outlays of capital, something that cloud helps reduce. By using the resources provided by the cloud provider, businesses avoid the need to purchase expensive infrastructure, substantially reducing their expenditure. Cloud providers work on the pay-as-you-go model, which means businesses only pay for the services they use, further reducing costs.
• Scalability: Cloud allows organizations to grow their users from merely a few to thousands in a very short time. Depending on the need, a business can scale their storage needs up or down, allowing organizations to be flexible.
• Flexibility and collaboration: Since the data on cloud can be accessed directly via the internet, it gives employees the ability to work from anywhere, anytime. Cloud gives you the freedom to set up your virtual office anywhere you are. It also allows teams to work on a project across locations by giving them access to the same files as third-party vendors.
• Business continuity: Cloud safely stores and protects your data in the event of an outage or crisis. This makes it easier to resume work once the systems are up and running again.
• Competitive edge: Cloud takes care of various business aspects, such as maintaining the IT infrastructure, licensing software, or training personnel to manage your data. It, therefore, gives you an edge over your competitors since the time and resources you invest are minimal. 

Talking about the benefits of cloud computing, Cloud Expert, Lucy Thorpe from InCloud SolutionsOpens a new window , says, “Cloud technology is ideal for growing companies because it allows you to scale up your computing capacity as you grow — adding in extra users and opening up new functionality. So, for example, if a company buys a software in a box solution from a cloud service provider, they can start out by using the financials element to speed up basic accounting processes and then move on to other parts of the system such as HR, CRM, and Project Management.”

Also Read: What Is Cloud Encryption? Definition, Importance, Methods and Best 

Now let’s move on to discuss some challenges of cloud computing.

The biggest challenge of cloud computing is the security concerns associated with the technology. Although cloud service providers assure you of implementing the best security standards and industry certifications, there’s always a risk while storing your data on cloud.

• Downtime: Almost every cloud user will tell you that outages tops their list of cloud computing challengesOpens a new window . At times, cloud service providers may get overwhelmed due to the huge number of clients they provide services to each day. This may lead to technical outages, due to which your applications may temporarily experience some downtime.
• Internet connection dependency: A user may not be able to access the data on cloud without a good internet connection and a compatible device. Moreover, using public Wi-Fi to access your files could pose a threat if the right security measures are not taken.
• Financial commitment: Cloud providers use a pay-as-you-go pricing model. However, businesses need to give a monthly or annual financial commitment for most subscription plans. This needs to be factored into their operating costs.
• Security risks: Even if your cloud service provider promises you that they have the most reliable security certifications, there’s always a chance of losing your data. With hackers increasingly targeting cloud storage to gain access to sensitive business data, this might be an even greater concern, for which the appropriate measures need to be taken.
• Limited access: A user may have minimal control since the cloud service provider owns and manages the infrastructure. The user would only be able to manage applications and not the backend infrastructure. Crucial tasks, such as firmware management, may not be passed to the user at all. You always have to trust a third-party vendor to ensure security and take care of your data.

Also Read: Top 10 Cloud Security Challenges 2021 Needs to Address

What Is an Example of Cloud Computing?

Several cloud computing applications are used by businesses and individuals, such as streaming platforms for audio or video, where the actual media files are stored remotely. Another would be data storage platforms like Google Drive, Dropbox, OneDrive, or Box.

Is Cloud Computing Safe?

Cloud security refers to efforts to protect digital assets and data stored on cloud-based services. Measures to protect this data include two-factor authorization (2FA), the use of VPNs, security tokens, data encryption, and firewall services, among others.

What Is Cloud Hacking?

Cloud hacking is when a cyber attack targets cloud-based service platforms, such as computing services, storage services, or hosted applications.

The Bottom Line

Individuals and businesses avoid keeping files on proprietary hard drives or local storage devices using cloud-based storage. Cloud computing is comprised of three services: (SaaS), (IaaS), and (PaaS). Providers allow users to store email, backups, data, audio, and video.

Disclaimer ||

The Information provided on this website article does not constitute investment advice ,financial advice,trading advice,or any other sort of advice and you should not treat any of the website’s content as such.

Always do your own research! DYOR NFA

Coin Data Cap does not recommend that any cryptocurrency should be bought, sold or held by you, Do Conduct your own due diligence and consult your financial adviser before making any investment decisions!