When referring to technology and computing, ‘the cloud’ is a term that regularly pops up. But what is cloud computing? Before its existence, companies were required to buy and maintain their own servers. This was not only costly for organisations but also relied on a lot of server space in case of outages and high volumes of traffic. In the modern world, however, cloud service providers enable users to reduce maintenance requirements, expensive IT resources, and the need for onsite hardware. In this guide, we’ll take you through how cloud computing works, the different types of cloud computing, and its advantages as well as the risks of it.

What Is Cloud Computing?

Cloud computing is essentially a range of services that can be conducted over the internet or via ‘the cloud’. It uses remote servers to both store and access data rather than hard drives and local data centres as was the traditional way.

There are 3 primary categories of cloud services: Software as a Service (SaaS), Platform as a Service (Paas), and Infrastructure as a Service (IaaS). These categories contain assets that we often use every day. Microsoft 365 and Sharepoint, for instance, are common examples of Software as a Service by allowing users to organise and store data in one efficient tool. SaaS is also the most common type of cloud service. PaaS supports web application development and deployment, prevalent examples being Microsoft Azure or Google App Engine, and IaaS provides basic computer infrastructure capabilities such as data storage.

Cloud computing has evidently revolutionised the way we save and store data, ultimately allowing users to access files from anywhere in the world with a stable internet connection.

How Does Cloud Computing Work?

A stable internet connection is a key way cloud computing is able to function. Remote servers or hosting companies maintain huge data centres where data is stored, offering the user a unified ecosystem of computing that is able to communicate between various programs and devices. As an example, if you download a song on Apple music on your laptop, it will instantly sync to the same app on your phone – this is cloud computing.

Advantages Of Cloud Computing

In an ever-increasing remote-based world, there are various benefits that can come from cloud computing. Whether you’re looking for scalability in your business, increased collaboration, or a more cost-effective system, cloud computing can be advantageous in many ways.

Quick Turnarounds

Cloud computing makes it easy to test new ideas or design apps without hardware issues and limiting processes. If you’re hoping to get started on a new venture, cloud computing is therefore a great way to turn around developments in quick succession, achieving a faster time to market which can be critical in business.

Flexibility

With a fully digitised operation, cloud computing offers flexibility like none other. Resources are able to be scaled up or down in line with your business needs, and there is no need to invest in expensive infrastructure as all your data is stored remotely. Cloud computing can thus meet all your business requirements in an effective yet speedy way.

Cost-Effective

As a user will only pay for the resources they use, cloud computing is highly cost-effective. Irrespective of the cloud service you choose, you do not have to allocate more budget than necessary to data storage as you might have with earlier data storage solutions. IT teams are also left to focus on other areas of the business, saving you money in the long run with little maintenance required.

Risks Of Cloud Computing

Despite its advantages, there are some risks associated with cloud computing technology that users should be aware of. Firstly, cloud systems often need double the number of devices to keep client information stored securely due to their occasional breakdown. Cloud systems are therefore known to make copies of client information in order to store it on another device, so if you’re dealing with highly classified information, this is something to consider.

A further risk is cloud computing’s reliance on the internet. If you struggle with an unstable internet connection, you may find it hard to access your data in some instances. These technical issues can cause real problems for businesses, particularly time-sensitive projects. Investing in high-speed fibre broadband might be a good idea to try to minimise these setbacks as much as possible if they’re a concern.

Cloud Computing Examples

Some commonly used cloud computing examples that businesses use are Google Drive, Microsoft Azure and Dropbox:

Google Drive 

A popular cloud storage service that lets users store, share, and view files from any internet-connected device.

Dropbox

Dropbox is an incredibly useful cloud tool storage service that offers users a place to store, sync and share many different types of documents online across multiple devices.  It is commonly used for backing up documents and collaborating with others.

Salesforce

This is a cloud-based customer relationship management (CRM) platform that helps businesses manage sales, customer service, marketing and customer data online. It allows teams to access information and collaborate from anywhere using the internet.

Microsoft Azure

Microsoft Azure is a cloud computing platform and service developed by Microsoft. It offers a wide range of cloud services, including compute, analytics, storage, and networking. Businesses use Azure to install and manage applications over a global network of data centres, taking use of technologies such as artificial intelligence, machine learning, and Internet of Things (IoT) integration.

These examples demonstrate the various applications of cloud computing, ranging from simple storage solutions to extensive business management platforms.

Why Is Cloud Hosting Becoming a Cornerstone for Businesses?

Having a robust online presence is non-negotiable for businesses, and cloud hosting is the secret sauce for achieving this. Unlike traditional web hosting, cloud hosting uses multiple servers to balance the load and ensure maximum uptime for your website. This means your website can handle sudden spikes in traffic without crashing—critical for e-commerce sites during sales events. Microsoft Azure leads the pack, offering scalable, reliable, and secure hosting solutions that power millions of websites across the globe.

Who Uses Cloud Computing the Most?

Cloud computing is flexible and can be used by a variety of users. The most typical users are small and medium-sized businesses (SMEs), large businesses, and start-ups. Each of these groups has different needs and benefits from cloud computing.

Small and Medium-Sized Businesses (SMEs)

Cloud computing has the potential to transform small and medium-sized companies. Typically, setting up IT infrastructure is costly and involves a considerable upfront expenses. On the other hand, cloud computing allows SMEs to gain access to enterprise-level technology without paying high costs. They can pay for what they use, grow their resources as needed, and avoid the cost and complexity of running physical servers.

Large Businesses

Large companies usually have complicated IT needs that require significant computing power. Cloud computing allows these businesses to rapidly scale their operations without investing in extra infrastructure. Furthermore, it provides strong security features and compliance with numerous industry regulations, which is critical for big companies that handle large volumes of sensitive information.

Startups

Startups thrive on innovation and adaptability. Cloud computing simplifies this by giving startups the tools they need to quickly develop and launch products. Because cloud services are scalable, startups can start small and grow their resources as they need. This adaptability is essential for companies that have to respond quickly to changes in the market.

Get In Touch With Cloud Specialists

If you’re looking to upgrade your cloud computing technology, feel free to get in touch with one of our cloud specialists at Lucidica where we’ll talk you through your options to find the right solution for you and your business.