Cloud computing has revolutionized the way organizations access computing resources and manage infrastructure. According to Flexera‘s 2021 State of the Cloud Report, over 90% of enterprises today leverage cloud services for some part of their operations. This article provides an easy-to-understand introduction to cloud computing for those new to the technology.
What is Cloud Computing?
Cloud computing refers to the delivery of computing services like servers, storage, databases, networking, software, analytics and more over the internet. These services are offered on demand through a cloud provider. Companies can rent these services and scale up or down based on dynamic business requirements without having to invest in and manage physical infrastructure in their own data centers.
Some of the benefits of cloud computing include:
- Cost efficiency – No upfront infrastructure investment, pay-as-you-go pricing
- Scalability – Instantly scale up or down based on demand
- Speed and agility – Rapidly deploy resources within minutes
- Reliability – Leverage cloud provider‘s resiliency and redundancy measures
- Productivity – Focus on innovation rather than infrastructure management
While cloud computing first emerged in the late 90s, it started gaining mainstream enterprise adoption only in the late 2000s with the launch of Amazon Web Services (AWS). Today, the cloud market spans a wide variety of services and deployment models.
Types of Cloud Computing
There are three main types of cloud computing:
Infrastructure-as-a-Service (IaaS)
IaaS providers offer fundamental building blocks of computing like servers, storage, networks and operating systems over the internet. Rather than purchasing hardware, customers can provision these resources on-demand and pay only for what they use.
Examples: Amazon EC2, Microsoft Azure, Google Compute Engine
Platform-as-a-Service (PaaS)
PaaS provides a managed platform with pre-configured toolsets to build, deploy and manage applications without having to setup underlying infrastructure. This enables faster app development and deployment.
Examples: AWS Elastic Beanstalk, Heroku, Force.com
Software-as-a-Service (SaaS)
SaaS delivers software applications over the internet without needing users to install anything locally. It reduces infrastructure costs and streamlines software management/updates for customers.
Examples: Gmail, Slack, Salesforce, Dropbox
Cloud Deployment Models
There are four common ways cloud environments are deployed:
Public Cloud
Resources are provisioned in the provider‘s data center and shared across organizations offering maximum efficiency and flexibility. But there may be heightened data security and privacy risks.
Examples: AWS, Azure, Google Cloud
Private Cloud
Resources are provisioned exclusively for a single organization, either internally or by a third-party host. This offers better security but is typically costlier to set up and manage.
Hybrid Cloud
Combines public and private clouds, allowing organizations to run sensitive applications internally while leveraging public cloud for other needs. This provides optimal cost efficiency alongside organizational control but increases complexity.
Multi-Cloud
Utilizes multiple public clouds rather than being locked into a single provider to avoid vendor dependency and exploit unique services from different providers. But managing across platforms increases costs and complexity.
Cloud Computing Services
Some of the most widely used cloud computing services include:
Cloud Storage Services
These provide scalable object, block or file storage for data backups, archives and disaster recovery.
Examples: Amazon S3, Azure Blob Storage, Google Cloud Storage
Cloud Database Services
Fully managed database engines offered as a cloud service for transactional, analytical and caching workloads. This alleviates the administrative burden of infrastructure provisioning and maintenance.
Examples: Amazon RDS, Azure SQL Database, Google Cloud SQL
Cloud Compute Services
These provide access to resizable compute capacity to support variable workloads. This is easier and cheaper compared to on-premises infrastructure.
Examples: Amazon EC2, Azure Virtual Machines, Google Compute Engine
Additionally, leading cloud platforms offer managed services for networking, analytics, artificial intelligence, machine learning, Internet of Things (IoT), security, monitoring and more.
Cloud Computing Use Cases
Here are some examples of popular cloud computing use cases across industries:
- Startups – Leverage cloud to quickly launch MVPs and scale up based on traction
- SMEs – Improve agility without upfront infrastructure investments
- Enterprises – Modernize legacy systems and focus on innovation rather than maintenance
- Government – Streamline services and enhance productivity across agencies
- Healthcare – Securely store and transmit patient data, deploy telehealth solutions
- Retail – Provide engaging omnichannel customer experiences
- Gaming – Build massive multiplayer online games and scale based on user demand
- IoT – Aggregate, process and analyze real-time data streams from connected devices
Cloud Challenges
While cloud adoption continues to accelerate, there are some key challenges faced by organizations:
- Security risks – Public cloud presents new attack surfaces and threats must be properly addressed
- Compliance – Regulations around data location, encryption etc. must be assessed
- Lock-in – Reliance on proprietary interfaces/tech and contracts could reduce vendor negotiating power
- Availability – Internet outages and cloud service disruptions could impact operations
- Skills gap – Transition from on-prem to cloud requires investments in training and reskilling staff
- Cost optimization – Inadequate usage monitoring and resource allocation could bloat expenses
Getting Started with Cloud Computing: Tips for Beginners
If you‘re just getting started with cloud adoption, here are a few best practices:
- Evaluate needs – Audit existing workloads and processes to come up with cloud goals
- Assess readiness – Check organizational culture, staff skills, security and compliance posture
- Choose suitable models – Align on deployment and service models based on goals and constraints
- Start small – Begin with pilot projects focused on non-critical workloads and scale up
- Compare capabilities – Evaluate unique strengths of top providers like AWS, Azure and Google Cloud
- Mitigate lock-in – Design portable solutions using standards and avoid exotic services when possible
- Automate processes – Script manual processes to increase efficiency and minimize errors
- Control spend – Use recommendations, budgets, reservations etc. to optimize cloud expenses
- Upskill personnel – Invest in relevant cloud certifications and skills training for IT teams
Additionally, for many organizations getting external guidance from cloud experts could help accelerate their cloud adoption journeys.
The Future of Cloud Computing
As digital transformation initiatives gain priority across sectors, cloud adoption is expected to ramp up even further. Emerging technologies like artificial intelligence, edge computing, quantum computing and new 5G applications will involve cloud-centric innovations.
Analyst firm Gartner predicts that worldwide end-user public cloud spending will grow over 20% to reach nearly $500 billion in 2023. This highlights the central role cloud will play in enabling organizational agility, resiliency and delivering smarter digital experiences.
