Cloud Computing.

What Is Cloud Computing? How the Cloud Works

U P D AT E D BY
Rose Velazquez | Sep. 12, 2022

Cloud Computing 101

Simply put, cloud computing is when computing services are stored and
accessed over the internet instead of through physical hard drives. Our guide
will walk you through what cloud computing it is, how it works and how it’s
being used today.

CLOUD COMPUTING OVERVIEW

CLOUD COMPUTING REFERS TO ANY KIND OF HOSTED SERVICE THAT IS DELIVERED OVER THE INTERNET. | IMAGE:
SHUTTERSTOCK

What Is Cloud Computing?

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

Files and programs stored in the cloud can be accessed

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

Cloud Computing Service Types

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

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

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

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

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Benefits of Cloud Computing

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

Cloud storage also comes with a number of other benefits.

Business leaders have reported the top benefits of cloud
computing to be increased efficiency, faster deployment,
collaboration tools, security and remote accessibility, according
to Statista.

How Does Cloud Computing Work?

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

HOW CLOUD COMPUTING WORKS

Cloud computing works by having companies host or maintain
massive data centers that provide the security, storage capacity
and computing power to support cloud infrastructure. Clients pay
for the rights to use their clouds along with an ecosystem to
communicate between devices and programs.
These hosting companies can sell the rights to use their clouds
and store data on their networks, while also offering the end
user an ecosystem that can communicate between devices and
programs (for example, download a song on your laptop and it’s
instantly synced to the music app on your iPhone).

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Types of Cloud Computing Delivery Models

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

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

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

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USES OF CLOUD COMPUTING

Companies and individuals use cloud computing in a variety of

unique and exciting ways. The Cloud Infrastructure Report 2021
from cloud management company CloudCheckr revealed close to
60 percent of the 304 IT and business stakeholders surveyed said
they had more than half their infrastructure already in the cloud.

The most prominent companies hosting the cloud are major

players like Amazon (Amazon Web Services), Microsoft (Azure),
Apple (iCloud) and Google (Google Drive), but there’s also a
bunch of other players, large and small.

WHAT ARE CLOUD COMPANIES?

Cloud companies, sometimes called Cloud Service Providers
 (CSPs), offer services or applications on the cloud. They host tools
and data centers that allow customers to retrieve and utilize
information in a flexible, manageable and cost-effective manner.
Customers can easily access their cloud-based data via any
network connection.

Among the most common applications of cloud computing

people might encounter both at work and in their everyday lives
are cloud-based collaboration tools like Microsoft OneDrive and
Dropbox, movie and music streaming and backup storage for
iPhones and other mobile devices.

In addition to some of the examples already covered, here is a

quick look at some other important application areas.

CLOUD COMPUTING APPLICATIONS

• Communication and collaboration
• Media streaming
• Big data analytics and insights
• Streamlining business processes
• Storage backups and data recovery

Communication and Collaboration

The entire Google suite of applications is cloud-based, from
calendar to Google Chat. Additionally, so are popular apps like
Zoom and WhatsApp, and all empower people to communicate
and collaborate on a global scale.
 Entertainment
Jobs Companies Articles Remote More
A combination of cloud computing and vastly improved internet
speed has given rise to media streaming giants like Netflix and
Hulu, which host enormous databases of movies and TV shows
available via the cloud. Cloud storage allows these companies
and others like Spotify and Tidal, to exist.

Big Data Analytics

Before the cloud, using big data to glean patterns and insights
was a cumbersome and expensive process. The cloud has
changed all that, eliminating the need for in-house development
resources when compiling and analyzing data. Nowadays
companies can collect data from a variety of sources, connect
them to the cloud and dig for insights in real time.

Business Processes
Without the cloud, innovative tools like Salesforce, Slack and
myriad others designed to enhance and streamline the daily
operations of companies would not exist.

Storage Backups
Cloud computing is an important answer to the issue of data-
loss and recovery on physical hard drives. Most individuals
who’ve owned a computer have experienced the stress of losing
irreplaceable files. Whether it’s a term paper, family photos or
the company payroll, cloud storage offers an easily accessible
 backup solution to keep data safe.

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