What is cloud computing?

Types, examples and benefits

A cloud can be private, public or a hybrid. A public cloud sells services to
anyone on the internet. A private cloud is a proprietary network or a data
center that supplies hosted services to a limited number of people, with
certain access and permissions settings. A hybrid cloud offers a mixed
computing environment where data and resources can be shared between
both public and private clouds. Regardless of the type, the goal of cloud
computing is to provide easy, scalable access to computing resources and IT
services.

Cloud infrastructure involves the hardware and software components required

for the proper deployment of a cloud computing model. 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.

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.

What are the different types of cloud computing

services?
Cloud services can be classified into three general service delivery categories:
Infrastructure as a service (IaaS)
IaaS providers, such as Amazon Web Services (AWS), supply a virtual
server instance and storage, as well as application programming interfaces
(APIs) that let users migrate workloads to a virtual machine (VM). Users have
an allocated storage capacity and can start, stop, access and configure the
VM and storage as desired. IaaS providers offer small, medium, large, extra-
large and memory- or compute-optimized instances, in addition to enabling
customization of instances for various workload needs. The IaaS cloud model
is closest to a remote data center for business users.

Platform as a service (PaaS)

In the PaaS model, cloud providers host development tools on their
infrastructures. Users access these tools over the internet using APIs, web
portals or gateway software. PaaS is used for general software development
and many PaaS providers host the software after it's developed. Examples of
PaaS products include Salesforce Lightning, AWS Elastic Beanstalk
and Google App Engine.

Software as a service (SaaS)

SaaS is a distribution model that delivers software applications over the
internet; these applications are often called web services. Users can access
SaaS applications and services from any location using a computer or mobile
device that has internet access. In the SaaS model, users gain access to
application software and databases. An example of a SaaS application is
Microsoft 365 for productivity and email services.

Function as a service (FaaS)

FaaS, also known as serverless computing, lets users run code in the cloud
without having to worry about the underlying infrastructure. Users can create
and deploy functions that respond to events or triggers. FaaS abstracts server
and infrastructure management, letting developers concentrate solely on code
creation.

The main
types of cloud computing.
Cloud computing deployment models
Private cloud
A business's data center delivers private cloud services to internal users. With
a private cloud, an organization builds and maintains its own underlying cloud
infrastructure. This model offers the versatility and convenience of the cloud,
while preserving the management, control and security common to local data
centers. Internal users might be billed for services through IT chargeback.
Examples of private cloud technologies and vendors
include VMware and OpenStack.

Public cloud
In the public cloud model, a third-party cloud service provider (CSP) delivers
the cloud service over the internet. Public cloud services are sold on demand,
typically by the minute or hour, though long-term commitments are available
for many services. Customers only pay for the central processing unit cycles,
storage or bandwidth they consume. Examples of public CSPs include AWS,
Google Cloud Platform (GCP), IBM, Microsoft Azure, Oracle and Tencent
Cloud.

Hybrid cloud
A hybrid cloud is a combination of public cloud services and an on-premises
private cloud, with orchestration and automation between the two. Companies
can run mission-critical workloads or sensitive applications on the private
cloud and use the public cloud to handle workload bursts or spikes in demand.
The goal of a hybrid cloud is to create a unified, automated, scalable
environment that takes advantage of all that a public cloud infrastructure can
provide, while still maintaining control over mission-critical data.

Multi-cloud
Organizations are increasingly embracing a multi-cloud model, or the use of
multiple IaaS providers. This lets applications migrate between different cloud
providers or operate concurrently across two or more cloud providers.

Organizations adopt multi-cloud for various reasons, including to help them

minimize the risk of a cloud service outage or take advantage of more
competitive pricing from a particular provider. It also helps organizations
avoid vendor lock-in, letting them switch from one provider to another if
needed.

However, multi-cloud deployment and application development can be a

challenge because of the differences between cloud providers' services and
APIs. Multi-cloud deployments should become easier as cloud providers work
toward standardization and convergence of their services and APIs. Industry
initiatives such as Open Cloud Computing Interface aim to promote
interoperability and simplify multi-cloud deployments.

Community cloud
A community cloud, which several organizations share, supports a particular
community that has the same concerns, mission, policy, security requirements
and compliance considerations. A community cloud is either managed by
these organizations or a third-party vendor and can be on or off premises.

Characteristics of cloud computing

Cloud computing has been around for several decades and today's cloud
computing infrastructure demonstrates an array of characteristics that have
brought meaningful benefits to businesses of all sizes.

Characteristics of cloud computing include the following:

 Self-service provisioning. End users can spin up compute resources for

almost any type of workload on demand. An end user can provision
computing capabilities, such as server time and network storage,
eliminating the traditional need for IT administrators to provision and
manage compute resources.

 Elasticity. Companies can freely scale up as computing needs increase

and scale down as demands decrease. This eliminates the need for
massive investments in local infrastructure, which might not remain active.

 Pay per use. Compute resources are measured at a granular level, letting
users pay only for the resources and workloads they use.

 Workload resilience. CSPs often deploy redundant resources to ensure

resilient storage and to keep users' important workloads running -- often
across multiple global regions.

 Migration flexibility. Organizations can move certain workloads to or from

the cloud or to different cloud platforms automatically.

 Broad network access. A user can access cloud data or upload data to
the cloud from anywhere with an internet connection using any device.
 Multi-tenancy and resource pooling. Multi-tenancy lets several
customers share the same physical infrastructures or the same
applications, yet still retain privacy and security over their own data. With
resource pooling, cloud providers service numerous customers from the
same physical resources. The resource pools of the cloud providers should
be large and flexible enough so they can service the requirements of
multiple customers.

 Security. Security is integral in cloud computing and most providers

prioritize the application and maintenance of security measures to
ensure confidentiality, integrity and availability of data being hosted on their
platforms. Along with strong security features, providers also offer various
compliance certifications to ensure that their services adhere to industry
standards and regulations.
What are the benefits of cloud computing?
Cloud computing provides a variety of benefits for modern business, including
the following:

Cost management
Using cloud infrastructure can reduce capital costs, as organizations don't
have to spend massive amounts of money buying and maintaining equipment,
investing in hardware, facilities or utilities, or building large data centers to
accommodate their growing businesses. In addition, companies don't need
large IT teams to handle cloud data center operations because they can rely
on the expertise of their cloud providers' teams. Cloud computing also cuts
costs related to downtime. Since downtime rarely happens in cloud
computing, companies don't have to spend time and money to fix issues that
might be related to downtime.

Data and workload mobility

Storing information in the cloud means users can access it from anywhere
with any device with just an internet connection. That means users don't have
to carry around USB drives, an external hard drive or multiple CDs to access
their data. They can access corporate data via smartphones and other mobile
devices, letting remote employees stay current with co-workers and
customers. End users can easily process, store, retrieve and recover
resources in the cloud. In addition, cloud vendors provide all the upgrades and
updates automatically, saving time and effort.

Business continuity and disaster recovery

All organizations worry about data loss. Storing data in the cloud guarantees
that users can always access their data even if their devices, such as laptops
or smartphones, are inoperable. With cloud-based services, organizations can
quickly recover their data in the event of natural disasters or power outages.
This benefits BCDR and helps ensure that workloads and data are available
even if the business suffers damage or disruption.

Speed and agility

Cloud computing facilitates rapid deployment of applications and services,
letting developers swiftly provision resources and test new ideas. This
eliminates the need for time-consuming hardware procurement processes,
thereby accelerating time to market.

Environmental sustainability
By maximizing resource utilization, cloud computing can help to promote
environmental sustainability. Cloud providers can save energy costs and
reduce their carbon footprint by consolidating workloads onto shared
infrastructure. These providers often operate large-scale data centers
designed for energy efficiency.

What are the disadvantages of cloud computing?

Despite the clear upsides to relying on cloud services, cloud computing has its
own challenges for IT professionals:
Cloud security
Security is often considered the greatest challenge organizations face with
cloud computing. When relying on the cloud, organizations risk data breaches,
hacking of APIs and interfaces, compromised credentials and authentication
issues. Furthermore, there's a lack of transparency regarding how and where
sensitive information entrusted to the cloud provider is handled. Security
demands careful attention to cloud configurations and business policy and
practice.

Unpredictable costs
Pay-as-you-go subscription plans for cloud use, along with scaling resources
to accommodate fluctuating workload demands, can make it difficult to define
and predict final costs. Cloud costs are also frequently interdependent, with
one cloud service often using one or more other cloud services -- all of which
appear in the recurring monthly bill. This can create additional unplanned
cloud costs.

Lack of expertise
With cloud-supporting technologies rapidly advancing, organizations are
struggling to keep up with the growing demand for tools and employees with
the proper skills and knowledge needed to architect, deploy and manage
workloads and data in a cloud.

IT governance difficulties
The emphasis on do-it-yourself in cloud computing can make IT governance
difficult, as there's no control over provisioning, deprovisioning and
management of infrastructure operations. This can make it challenging for
organizations to properly manage risks and security, IT compliance and data
quality.

Compliance with industry laws

When transferring data from on-premises local storage into cloud storage, it
can be difficult to manage compliance with industry regulations through a third
party. It's important to know where data and workloads are actually hosted to
maintain regulatory compliance and proper business governance.

Management of multiple clouds

Every cloud is different, so multi-cloud deployments can disjoint efforts to
address more general cloud computing challenges.

Cloud performance
Performance -- such as latency -- is largely beyond the control of the
organization contracting cloud services with a provider. Network and provider
outages can interfere with productivity and disrupt business processes if
organizations aren't prepared with contingency plans.

Cloud migration
The process of moving applications and other data to the cloud often causes
complications. Migration projects frequently take longer than anticipated and
go over budget. The issue of workload and data repatriation -- moving from
the cloud back to a local data center -- is often overlooked until unforeseen
costs or performance problems arise.

Vendor lock-in
Often, switching between cloud providers can cause significant issues. This
includes technical incompatibilities, legal and regulatory limitations and
substantial costs incurred from sizable data migrations.

What are some examples of cloud computing?

 Google Docs, Microsoft 365. Users can access Google Docs and
Microsoft 365 via the internet. Users can be more productive
 because they can access work presentations and spreadsheets
stored in the cloud anytime from anywhere on any device.

 Email, Calendar, Skype, WhatsApp. Emails, calendars, Skype

and WhatsApp take advantage of the cloud's ability to provide users
with access to data remotely so they can examine their data on any
device, whenever and wherever they want.

 Zoom. Zoom is a cloud-based software platform for video and audio

conferencing that records meetings and saves them to the cloud,
letting users access them anywhere and at any time. Another
common communication and collaboration platform is Microsoft
Teams.

 AWS Lambda. Lambda lets developers run code for applications or

back-end services without having to provision or manage servers.
The pay-as-you-go model constantly scales with an organization to
accommodate real-time changes in data usage and data storage.
Other examples of major cloud providers that also
support serverless computing capabilities include Google Cloud
Functions and Microsoft Azure Functions.

 Salesforce. Salesforce is a cloud-centric customer relationship

management platform designed to assist businesses in overseeing
their sales, marketing and customer service operations.
Cloud computing use cases
How is the cloud actually used? The myriad services and capabilities found in
modern public clouds have been applied across countless use cases, such as
the following:

 Testing and development. Ready-made, tailored environments can

expedite timelines and milestones.
 Production workload hosting. Organizations are using the public
cloud to host live production workloads. This requires careful design
and architecture of cloud resources and services needed to create
an adequate operational environment for the workload and its
required level of resilience.

 Big data analytics. Remote data centers through cloud storage are
flexible and scalable and can provide valuable data-driven insights.
Major cloud providers offer services tailored to big data analytics and
projects, such as Amazon EMR and Google Cloud Dataproc.

 IaaS. IaaS lets companies host IT infrastructures and access

compute, storage and network capabilities in a scalable manner.
Pay-as-you-go subscription models are cost-effective, as they can
help companies save on upfront IT costs.

 PaaS. PaaS can help companies develop, run and manage

applications more easily and flexibly, at a lower cost than
maintaining a platform on premises. PaaS services can also
increase the development speed for applications and enable higher-
level programming.

 Hybrid cloud. Organizations have the option to use the appropriate

cloud -- private or public -- for different workloads and applications to
optimize cost and efficiency according to the circumstance.

 Multi-cloud. Using multiple different cloud services from separate

cloud providers can help subscribers find the best cloud service fit
for diverse workloads with specific requirements.

 Storage. Large amounts of data can be stored remotely and

accessed easily. Clients only have to pay for storage that they
actually use.

 Disaster recovery. Cloud offers faster recovery than traditional on-

premises DR. Furthermore, it's offered at lower costs.
  Data backup. Cloud backup options are generally easier to use.
Users don't have to worry about availability and computing capacity,
and the cloud provider manages data security.

 Artificial intelligence as a service. Cloud computing lets

individuals without formal knowledge or expertise in data sciences
reap the benefits of AIaaS. For example, a web developer might
create a facial recognition app with their web development skills. AI
is available as a service in the cloud and accessible via the API. This
lets users automate routine tasks, saving time and personnel costs.
Businesses can also enhance decision-making by using AI to predict
outcomes based on historical datasets.

 Internet of things. Cloud computing simplifies the processing and

management of data from IoT devices. Cloud platforms offer the
scalability and processing capacity required to handle the enormous
amounts of data produced by IoT devices, facilitating real-time
analytics and decision-making. For example, an IoT device system
such as Google Nest or Amazon Alexa can collect data on how
much energy is used inside a smart home. The device can then use
cloud computing to analyze the gathered data and make
recommendations to the homeowner on how to reduce energy
consumption.
Cloud computing vs. traditional web hosting
Given the many different services and capabilities of the public cloud, there
has been some confusion between cloud computing and major uses, such
as web hosting. While the public cloud is often used for web hosting, the two
are quite different. Significant innovations in virtualization and distributed
computing, as well as improved access to high-speed internet, have
accelerated interest in cloud computing.
The distinct characteristics of cloud computing that differentiate it from
traditional web hosting include the following:

1. With cloud computing, users can access large amounts of

computing power on demand. It's typically sold by the minute
or the hour. With traditional hosting, users typically pay for a
set amount of storage and processing power. Since resources
are limited, businesses can look into virtual private servers or
dedicated hosting as their business and demands grow.

2. Cloud computing is elastic, meaning users can have as much

or as little of a service as they want at any given time.
However, with traditional hosting, scalability is often
constrained, particularly in shared hosting. Shared hosting
involves multiple websites sharing resources on a single
server, potentially causing performance issues and slower
website speeds if one site encounters a sudden surge in
traffic.

3. Service is fully managed by the provider on cloud computing

platforms; the consumer needs nothing but a PC and internet
access. While shared traditional hosting is also fully managed
by the provider, typically users are required to control their
website from a user-friendly interface such as cPanel.

4. In comparison to traditional hosting, cloud hosting is more

reliable. Cloud providers maintain redundant infrastructure and
operate across numerous data centers, reducing downtime
and increasing availability. Traditional hosting, on the other
hand, is based on a single server, making it more prone to
hardware failures and higher downtime threats.

5. Both cloud hosting and traditional hosting entail security

considerations. Cloud hosting providers invest significantly in
 security measures to safeguard data and infrastructure.
However, certain organizations might find traditional hosting
more suitable, as it provides greater control over security
measures and can accommodate specific security
requirements.

Though cloud services typically rely on a pay-per-use model, different

providers often have variations in their pricing plans to consider. Furthermore,
if the cloud provider will be storing sensitive data, an organization should also
consider the physical location of the provider's servers.

Naturally, reliability and security should be top priorities. A provider's service-

level agreement should specify a level of service uptime that's satisfactory to
client business needs. When considering different cloud vendors,
organizations should pay close attention to what technologies and
configuration settings are used to secure sensitive information.

Cloud computing security

Security remains a primary concern for businesses contemplating cloud
adoption -- especially public cloud adoption. Public CSPs share their
underlying hardware infrastructure between numerous customers, as the
public cloud is a multi-tenant environment. This environment demands
significant isolation between logical compute resources. At the same time,
access to public cloud storage and compute resources is guarded by account
login credentials.

Many organizations bound by complex regulatory obligations and governance

standards are still hesitant to place data or workloads in the public cloud for
fear of outages, loss or theft. However, this resistance is fading, as logical
isolation has proven reliable and the addition of data encryption and
various identity and access management tools have improved security within
the public cloud.
Ultimately, the responsibility for establishing and maintaining a secure cloud
environment falls to the individual business user who is responsible for
building the workload's architecture -- the combination of cloud resources and
services in which the workload runs -- and using the security features that the
cloud provider offers.

What is the history of cloud computing?

The history and evolution of cloud computing date back to the 1950s and
1960s.

 1950s. Companies started using large mainframe computers,

but due to the expense, not every organization could afford to
purchase one. So, during the late 1950s and early 1960s, a
process called time sharing was developed to make more
efficient use of expensive processor time on the central
mainframe. Time sharing lets users access numerous
instances of computing mainframes simultaneously,
maximizing processing power and minimizing downtime. This
idea represents the first use of shared computing resources,
the foundation of modern cloud computing.

 1960s. The origins of delivering computing resources using a

global network are, for the most part, rooted in 1969 when
American computer scientist J.C.R. Licklider helped create the
Advanced Research Projects Agency Network, the so-called
precursor to the internet. Licklider's goal was to connect
computers across the globe in a way that would let users
access programs and information from any location.

 1970s. Cloud computing began to take a more tangible shape

with the introduction of the first VMs, letting users run more
than one computing system within a single physical setup. The
functionality of these VMs led to the concept of virtualization,
 which had a major influence on the progress of cloud
computing.

 1980s. In the 1970s and 1980s, Microsoft, Apple and IBM

developed technologies that enhanced the cloud environment
and advanced the use of cloud server and server hosting.

 1990s. In 1999, Salesforce became the first company to

deliver business applications from a website.

 2000s. In 2006, Amazon launched AWS, providing services

like computing and storage in the cloud. Following suit, the
other major tech players, including Microsoft and Google,
launched their own cloud offerings to compete with AWS.

 2010s. Microsoft launched Azure in 2010 and Office 365 in

2011. Also, the Docker container technology was first released
in this decade. Microservices and serverless platforms were
also introduced in this timeframe when the Google App Engine
was launched in 2008, followed by AWS Lambda in 2015.

 2020 and beyond. The growth of serverless computing is

anticipated to continue and edge computing will become more
and more significant in the upcoming years. Edge computing
devices are expected to improve and become more
interconnected as AI and machine learning technologies
advance.
 Key
points in the evolution and emergence of modern cloud computing.
Future of cloud computing and emerging technologies
Cloud computing is expected to see substantial breakthroughs and the
adoption of new technologies. Back in its "2020 Data Attack Surface Report,"
Arcserve predicted that there will be 200 zettabytes of data stored in the
cloud by 2025.

Some major trends and key points that are shaping the future of cloud
computing include the following:

 Organizations are increasingly migrating mission-critical

workloads to public clouds. One reason for this shift is that
business executives who want to ensure that their companies
can compete in the new world of digital transformation are
demanding the public cloud.

 Business leaders are also looking to the public cloud to take

advantage of its elasticity, modernize internal computer
systems, and empower critical business units and their
DevOps teams. Cloud providers, such as IBM and VMware,
are concentrating on meeting the needs of enterprise IT, in
 part by removing the barriers to public cloud adoption that
caused IT decision-makers to shy away from fully embracing
the public cloud previously.

 Generally, when contemplating cloud adoption, many

enterprises have mainly focused on new cloud-native
applications -- that is, designing and building applications
specifically intended to use cloud services. They haven't been
willing to move their most mission-critical apps into the public
cloud. However, these organizations are beginning to realize
that the cloud is ready for the enterprise if they select the right
cloud platforms.

 Cloud providers are locked in ongoing competition for

cloud market share, so the public cloud continues to evolve,
expand and diversify its range of services. This has resulted in
public IaaS providers offering more than common compute
and storage instances. For example, serverless, or event-
driven, computing is a cloud service that executes specific
functions, such as image processing and database updates.
Traditional cloud deployments require users to establish a
compute instance and load code into that instance. Then, the
user decides how long to run -- and pay for -- that instance.
With serverless computing, developers simply create code
and the cloud provider loads and executes that code in
response to real-world events so users don't have to worry
about the server or instance aspect of the cloud deployment.
Users only pay for the number of transactions that the function
executes. AWS Lambda, Google Cloud Functions and Azure
Functions are examples of serverless computing services.

 Public cloud computing also lends itself well to big data

processing, which demands enormous compute resources for
relatively short durations. Cloud providers have responded
 with big data services, including Google BigQuery for large-
scale data warehousing and Microsoft Azure Data Lake
Analytics for processing huge data sets.

 Another crop of emerging cloud technologies and services

relates to AI and machine learning. These technologies
provide a range of cloud-based, ready-to-use AI and machine
learning services for client needs. Examples of these services
include Amazon Machine Learning, Amazon Lex, Amazon
Polly, Google Cloud Machine Learning Engine and Google
Cloud Speech API.