Understanding Cloud Computing and Its Impact on Businesses

Across the globe, countless businesses are embracing cloud computing and related services to drive their growth. This trend is expected to persist throughout 2022 and beyond, as cloud computing offers numerous advantages for both businesses and individuals, including enhanced flexibility, reduced operating costs, quicker time to market, and more.

But is cloud computing the right strategy for your business? Will the benefits outweigh the investments in time, money, and resources?

This guide explores the advantages that businesses can reap by adopting cloud computing. Additionally, we’ll cover essential topics you need to know about cloud computing, such as:

• What is cloud computing?
• A brief history of the cloud
• Different types of cloud computing
• Various cloud services available
• The security of cloud computing
• And more

Let’s start by briefly explaining what cloud computing is.

What is Cloud Computing?

Cloud computing refers to the delivery of computing services—both software and hardware—over a network, typically the internet. This allows end-users to access these services remotely without needing direct physical access to the hardware or software.

Thanks to technological advancements, a wide range of computing services can now be delivered via the cloud, including servers, storage solutions (like Dropbox), databases, software, analytics tools, and intelligence platforms.

Before the advent of the cloud, applications or programs were traditionally run on physical devices, requiring software to be downloaded, installed, and executed on the hardware’s operating system. With cloud computing, however, the main processing occurs on a remote machine, reducing or eliminating the need for high-powered devices and large storage spaces on the user’s end.

A Brief History of Cloud Technology

While the terms “cloud” and “cloud computing” have recently gained popularity, the concept has been around for over half a century. In 1963, DARPA funded MIT to develop technology that enabled virtual computers to be used simultaneously by multiple people.

In 1969, the ARPANET—the precursor to the internet—was established, laying the foundation for cloud access. By the 1970s, the concept of Virtual Machines (VMs) emerged, allowing computers to run fully functional operating systems over the internet. By the 1990s, virtual desktops became popular, leading to the development of modern cloud infrastructures.

The modern idea of cloud computing was introduced in 1997 by Professor Ramnath Chellapa, who described it as a new computing paradigm, predicting that economic value rather than technical limits would shape computing boundaries—a prediction that has proven accurate.

By the early 2000s, major enterprises like Amazon, Microsoft, Google, Facebook, Apple, and Netflix began offering cloud-based services, bringing cloud computing into the mainstream.

Different Types of Cloud Computing

Cloud computing can be categorized into four main types based on deployment models:

1. Public Cloud: In a public cloud, infrastructure and resources are hosted and managed by a third-party provider. Businesses rent these services rather than investing in on-premises infrastructure, making it a cost-effective option for smaller companies.
2. Private Cloud: A private cloud is an on-demand infrastructure owned by the business. It offers greater control over resources and data but also requires the business to manage security and performance.
3. Hybrid Cloud: A hybrid cloud combines public and private cloud services, allowing businesses to leverage both for improved flexibility and scalability.
4. Multi-Cloud: Multi-cloud refers to using multiple cloud providers simultaneously. For example, a business might use AWS for hosting VMs and Google Cloud for productivity tools, combining the strengths of different platforms.

Different Types of Cloud Services

There are four basic types of cloud services, each designed to meet different needs:

1. Software as a Service (SaaS): SaaS offers software applications that users can access over the cloud without needing to install them on their devices. Google Docs is a prime example of a SaaS product.
2. Infrastructure as a Service (IaaS): IaaS allows businesses to rent servers and other infrastructure from cloud providers for computing and storage, requiring in-house IT expertise to manage the systems.
3. Platform as a Service (PaaS): PaaS provides hardware and software tools over the cloud for developing and deploying applications, offering flexibility in building software without investing in infrastructure.
4. Function as a Service (FaaS): FaaS, also known as serverless computing, enables businesses to execute code on the cloud without managing the underlying servers, making it a cost-effective option for implementing microservices.