4/11/23, 8:53 AM Cloud 101: What is cloud computing?

| SAP Insights

Cloud
SAP Insights 101: What is cloud computing
technology?
What is cloud computing?

Cloud computing has arrived, and everyone is

interested in learning more. Your users and customers
are used to their personal mobile applications, like
Facebook and Google Docs, where they can interact and
work anywhere, anytime. But there is much more
behind cloud computing than just a modern web
interface. Great response time, data storage,
information access, reliability, and security are all vital
to any business looking into a possible “move to the
cloud.” More than likely your peers have told you of
their success with cloud computing and how they have
the most current technology, much more flexibility, or
lower IT costs.

What is cloud technology?

Cloud computing delivers services such as data storage, security, networking, software
applications, and business intelligence via the internet on a subscription basis.

https://www.sap.com/insights/what-is-cloud-computing.html 1/9
4/11/23, 8:53 AM Cloud 101: What is cloud computing? | SAP Insights

As you explore the world of cloud computing, you will want to be familiar with some of the terms,
definitions, and choices you have in cloud computing. Here you will find an assortment of
pertinent information, including explanations of terms such as SaaS, PaaS, IaaS, public cloud,
private cloud, hybrid cloud, and how they differ. The cloud does offer a lot of benefits and we will
briefly review those first.

Benefits of cloud computing

■ Reliable: Secure, safe, and available. Get 24×7 cloud system access from anywhere with
excellent response time.  Run on secure servers with a staff of full-time security experts. Know
that your data is redundant and remotely backed up.

■ Flexible: Get the computing power you need when you need it. Add or reduce servers,
networking, or storage. Get new users on board instantly. Expand to new geographies. All done
fast and easy.
■ Financial: Only pay for what you need. No up-front financial expenses for hardware or facilities.
Reduce IT staff time used to maintain and upgrade the systems. Instead, invest your funds and
people in revenue-generating projects.
■ Up-to-date: Always have the latest version of the platform, database, and software applications.
Plus, take advantage of emerging technologies such as machine learning (ML), artificial
intelligence (AI), Internet of Things (IoT), and more.  Always stay up to date on the latest
innovations.

https://www.sap.com/insights/what-is-cloud-computing.html 2/9
4/11/23, 8:53 AM Cloud 101: What is cloud computing? | SAP Insights

Types of cloud computing services

Cloud computing is divided into three main service categories: SaaS, PaaS, and IaaS. Some
providers combine these services – and others offer them independent of each other.

The three types of cloud computing services.

What is SaaS?
 
With SaaS (software-as-a-service), software is hosted on a remote server and customers can
access it anytime, anywhere, from a Web browser or a standard web integration. The SaaS
provider takes care of backups, maintenance, and updates. SaaS solutions include enterprise
resource planning (ERP), customer relationship management (CRM), project management, and
more.
 
https://www.sap.com/insights/what-is-cloud-computing.html 3/9
4/11/23, 8:53 AM Cloud 101: What is cloud computing? | SAP Insights

What is PaaS?
 
Platform-as-a-service (PaaS) is a cloud-based, application development environment that
provides developers with everything they need to build and deploy apps. With PaaS, developers
can choose the features and cloud services they want on a subscription or pay-per-use basis.
 
What is IaaS?
 
Infrastructure-as-a-service (IaaS) lets companies “rent” computing resources, such as servers,
networks, storage, and operating systems, on a pay-per-use basis. The infrastructure scales – and
customers don’t have to invest in the hardware.

IaaS vs. PaaS vs. SaaS

Compare SaaS, PaaS, and IaaS and find out what you can expect from each “as-a-service” model.
Most companies now use a mix of the three – and the lines between them can sometimes blur.

  Saas

Who Uses It Business users Developers

What You Get Software applications Development

Purpose To complete business tasks To build and d

Provider Controls Apps, data, runtime, middleware, Runtime, midd

O/S, virtualization, servers, virtualization,
storage, networking networking

Customer Controls N/A – everything is managed by Apps, data

the provider

     

Types of cloud deployment

https://www.sap.com/insights/what-is-cloud-computing.html 4/9
4/11/23, 8:53 AM Cloud 101: What is cloud computing? | SAP Insights

There are three different types of cloud deployment: public, private, and hybrid. Many companies
choose more than one approach and set up a multi-cloud environment.

Cloud deployment options

1. Public cloud: With a public cloud, services are delivered to customers over a network that’s
available for usage by the provider’s clients. Public clouds offer efficiency and affordability and
are often multi-tenant – meaning the provider runs your service in a shared environment.

2. Private cloud: With a private cloud, services are maintained on a private network protected by a
firewall. You can build a private cloud within your own data center – or subscribe to one hosted
by a vendor. Private clouds offer the most security and control.
3. Hybrid cloud: A hybrid cloud is a combination of public cloud, private cloud, and on-premise
infrastructure. Hybrid clouds let you keep sensitive information in a traditional data center or
private cloud while taking advantage of public cloud resources.

Public vs. private vs. hybrid cloud

Compare the three different types of cloud deployments to find out which would work best for
your company.

  Public Cloud Priv

Environment Publicly-shared computing Private compu

resources

Auto-Scaling High Can be limited

Security Good – but depends on security of Most secure –

the vendor private data c

Reliability Medium – depends on Internet High – all equ

connectivity and service provider hosted by ded

https://www.sap.com/insights/what-is-cloud-computing.html 5/9
4/11/23, 8:53 AM Cloud 101: What is cloud computing? | SAP Insights

availability provider

Cost Low – pay-for-what-you-need Moderate to h

model and no need for on-premise premise resou
storage and infrastructure center, electri

Who Is It for? Companies that want to take Government a

advantage of the latest SaaS apps providers, ban
and elastic IaaS while keeping that handles a
costs low

     

Cloud security
Is the cloud actually secure? The degree of security in the cloud depends on how it was deployed
and the cloud service provider’s capabilities. But it has been shown that in most cases, the cloud
provides more security than on-premise installations. There are several reasons for this:
 
Location of data: An on-premise deployment will mean your data is in your facility. It is worth
noting that the first step in someone stealing your data is knowing where it is located. The large
cloud providers have many servers in various locations, so it is difficult for anyone to identify
where data is located.
 
Security: With an on-premise solution, your staff maintains all security procedures and software
updates. Just recently, a large, well-known insurance company had a security breach, and it was
found that the IT department had not installed security updates for many months. With a
reputable cloud provider, companies have full-time professional security experts to keep the data
safe.
 
Backup: In a traditional legacy application implementation in your facility, you are responsible for
backing up your valuable information on a regular basis. If your company does this, it is still
necessary to have current copies stored off-site.

Delivering new technologies via the cloud

IT departments are under increasing pressure to transform from cost centers to value creators –
and now must lead the charge when it comes to innovation. Cloud computing and Platform-as-a-
Service (PaaS) can be a catalyst for CIOs who want to successfully maintain a bi-modal IT
environment that encourages rapid innovation while securely supporting the stable, mission-
critical core of the business.

https://www.sap.com/insights/what-is-cloud-computing.html 6/9