With over 90% of companies using at least one type of cloud service – and roughly a third of IT budgets dedicated to cloud – understanding cloud computing and its benefits for your business is an essential modern skill.
That’s why we’ve put together an in-depth guide explaining what the cloud is (including examples of cloud computing), as well as the various types of cloud and their benefits, so you feel equipped to make an informed decision about your digital transformation strategy.
What is the cloud?
Cloud computing is a label that covers on-demand IT solutions, but it more-generally refers to data storage options which aren’t on hardware you manage.
In the old days, all of a company’s data (including systems and software) was stored on servers and hard drives that they operated. As technology progressed, cloud options became available, meaning this data didn’t need to be physically stored by the company any more. Instead, they would have access to a digital copy stored on the cloud!
How does cloud computing work?
A lot of the confusion around cloud computing stems from the use of the word ‘cloud’. It implies the data now lives only in an remote form and can be plucked from the air as needed – and it would be understandable if you were thinking of it like that.
However, the reality of cloud isn’t that the servers don’t exist anymore; they are now simply operated by a third-party.
Systems, files, and applications hosted on the cloud still have a physical presence somewhere in the world, they are just somewhere removed, and require no upkeep from the companies storing information on them.
Essentially: if you store data on a computer that you are physically responsible for, then that is just storing data. But, if you’re storing your data on a third-party’s server, of which you have no physical interaction with, then this is an example of cloud computing.
Real world examples of cloud computing
Common, real-life uses of cloud computing include:
- Email, such as Outlook or Gmail
- Document sharing platforms, such as Google Docs and Dropbox
- Contract sharing platforms, such as Docusign
- CRM platforms, such as Salesforce and Hubspot
In each of the above examples of cloud computing, users access data, files, and information remotely through a third-party platform.
Arguably, social media websites are also an example of cloud computing, since you can upload photos, videos, and calendars, and then keep them stored on the host’s servers instead of your own.
Types of cloud computing
There are three main types of cloud computing deployment models to choose from – private, public, and hybrid – with the best fit for your company depending on a series of factors and the specifications of your computer system.
Private cloud
Private Cloud is perhaps the simplest type of cloud since it’s just a bank of resources (hardware) used exclusively by a single company.
A private cloud can either be hosted on-premises (if a business has the budget to build the infrastructure and hardware and has the in-house expertise to run it) or hosted in a data centre. If you opt for the latter, you enjoy the added benefit of having the power, cooling, and network infrastructure supplied by your data centre partner.
Public cloud
Public cloud is stored on a third-party infrastructure, hosted by a cloud provider such as AWS or Microsoft Azure. While the platform hosts multiple users, each user’s data is secure – only the infrastructure, bandwidth, and services are shared.
One of the great benefits of public cloud is that it means you no longer need to invest in and maintain your own servers, which takes a lot of responsibility away from your IT team.
Hybrid cloud
Hybrid cloud combines several different cloud platforms so that a business can take advantage of their different benefits. It’s a ‘best-of-both-worlds’ solution.
The most straightforward example of hybrid cloud computing is having certain applications run on public cloud so they can be scaled up and down quickly, while secure data is kept on a private cloud so it’s not at risk.
Which type of cloud computing is best?
As a general rule of thumb, when choosing between public vs private cloud, a main consideration should be the size of your company:
- If you’re a smaller company, hosting on a public cloud will probably be the most cost-effective method.
- If your computer system is too large to be hosted on public, private cloud might be the best fit for you.
- Hybrid cloud will be the best fit for you if your private cloud cannot keep up with spikes in demand.
Types of cloud service models
Separate from the labels of public and private cloud (which are deployment models), cloud can also be defined by the type of service they deliver. There are different types of cloud computing service models: IaaS, PaaS, and SaaS.
Infrastructure as a Service
IaaS gives you lots of control since you effectively rent infrastructure from your cloud supplier and are responsible for building the applications yourself. This allows you to only pay for what you need and scale the infrastructure up and down as required.
Platform as a Service
PaaS is a development environment that allows you to build applications using existing software programmes and frameworks. Providing control without making you build programmes from scratch; PaaS lets you get stuck straight into building out applications and code.
Software as a Service
SaaS are ready-to-use software programmes. It’s incredibly convenient being able to lease software pre-coded, but it’s worth noting that you will be limited as to how much you can customise software to your business needs.
Benefits of cloud computing
We’ve looked at the different types and real-world uses, but what are the benefits of cloud computing?
Reliability
Public cloud servers are hosted by cloud experts, so you can be certain that your data is always accessible, and applications will run with streamlined precision. And if you suffer network outages, your SLA will outline how much you’ll be compensated for the inconvenience.
As an added bonus, because hosts such as AWS and Azure pride themselves on quality, they’re always investing in innovation to further-improve the cloud experience too.
Scalability
If your company rapidly grows or shrinks, or has a random spike or dip in activity, your cloud host can change provisions to adapt. A public cloud provider can do this much more quickly, and without any long-term investment from your company, than if you were running your own servers.
Lower costs
Running private servers and investing in a team which manage them can be expensive. Often, the fees attached to cloud computing solutions and an accompanying cloud consultant come to less than that of spending on a full internal IT team.
Accessibility
A significant cloud computing advantage is the fact you can access your data and information from anywhere, so long as you have an internet connection. This allows for unprecedented flexibility, accessibility, and mobility for all users.
Security
Cloud hosts such as Amazon and Azure invest in best-practice cloud security measures to protect their infrastructure. However, that said, with cloud computing, there’s often a shared responsibility, in that you’ll still typically be responsible for ensuring your data is safe from malware, hackers, or unauthorised access (i.e. use strong passwords and add suitable encryption).
Business continuity
A significant benefit of cloud computing is how it allows you to operate even in the event of a disaster. Even if physical hardware is damaged or destroyed, backups of your data and information can be accessed from the remote servers, reducing downtime.
Next steps: deciding on clouds
Just remember that cloud hosting involves outsourcing your data storage to a third party in some capacity. You need to make sure you understand exactly what data and applications you would be outsourcing to them, and what they would be able to provide while you work with them.
A business cloud is an essential tool that can quickly elevate your business and make scaling a breeze – and we have a variety of managed cloud services available to suit your unique needs. Get in touch with our experts today to find out how to choose a cloud consulting company – or if you’re looking to learn more about the cloud, check out more articles below and head on over to our cloud blog.
