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What Is Cloud Computing? Guide by Wallarm

Finding storage that can hold and handle progressively larger amounts of data has become a top issue. On-premise servers, databases, hardware, software, and other components have downsides like expenses, low availability, high maintenance efforts, and security threats. 

Cloud Computing, the most famous technology of the current era, has solved it for businesses across the globe. It reduces operational costs, improves infrastructure management, and enables you to scale as your business's needs change.

The technology enables quicker innovation, adaptable resources, and growing economies. Most of the time, you only pay for the cloud services that you actually use. 

Without further ado, let's find out what it is and other specifics.

What Is Cloud Computing? Guide by Wallarm

Cloud Computing Definition

As a whole, this technology ensures the smooth delivery of hosted services utilizing the worldwide web, i.e., the internet. Here, software applications, platforms, and infrastructure are its three primary types or categories you can utilize.

Under these umbrellas, businesses and individuals can receive innumerable services globally. The list may comprise servers, storage capacity, analytics services, processors, database capabilities, networking solutions, business-specific features, software tools, and intelligence. 

Cloud framework comprises hardware & software needed for its model's proper operation. So, with cloud-based storage, end-users can store files remotely rather than locally or on a proprietary hard-drive. You can also run programs remotely with it.

The technology’s aim is to offer simple, scalable access to computer resources and IT services to the end-users. Its benefits like cost-effectiveness, enhanced productivity, better speed, improved computing ability, uninterrupted performance, and high-level cyber security have made it an increasingly desirable choice for both consumers and organizations.


a. Public: Obtainable for purchase by anybody with super-fast internet access. 

b. Private: It’s a private network or data hub with specified access and authentication settings offering hosted services to a limited number of users.

How it works?

Also called as utility/on-demand computing, it is a jigsaw made up of three fundamental pieces:

  • Data centers are placed where the companies offering cloud space or computing services store apps and data on actual hardware.
  • They are accessible to users.
  • The internet immediately integrates users and suppliers over vast distances.

Although the parts are straightforward, the technology that assembles them is complicated. 

Prior to the advent of this technology, IT departments of businesses had their own on-site data centers, which necessitated frequent hardware upgrades, astronomical energy costs, and an unreasonable amount of space. 

Now, cloud providers supply all these amenities based on subscriptions. Consumers have access to all the computer resources they require in exchange for a monthly charge. They won't need to purchase software licenses. A central server controls communications between the front and back ends using standard protocols to speed up data exchange. It makes use of both software as well as middleware to connect various network components. 

Is your enterprise using legacy systems that require a lot of maintenance on a regular basis?

You can replace obsolete servers, purchase additional computers when their storage is full, or update their software to stay current with emerging security concerns. 

The supplier will handle everything in the backend for you. All you need is a stable network connection, a browser, and valid credentials to access the desired resources. Once you have it, everything can be taken care of using the frontend.

History of Cloud Computing 

Organizations first used large mainframe computers in the 1950s, but purchasing one for every user was prohibitively expensive. So, in order to utilize the expensive processor time on the central mainframe more effectively, time sharing was settled in the late 1950s and early 1960s.

Users can use multiple administration computing instances at once thanks to time-sharing, which increased processing power and decreased downtime. The principle of contemporary cloud computing was initially applied with this concept.

In 1969, when the concept of distributed computing resources across a global network first appeared, American computer scientist, J.C.R. Licklider contributed to advanced research projects agency network development, sometimes referred to as the predecessor to the internet. In order to let users access software and data from any location, Licklider set out to connect computers worldwide.

With the debut of the first VMs in the 1970s, which allowed users to operate many computer systems inside a single physical setup, it has started taking a more concrete form. These VMs' usefulness gave rise to the notion of hybridization, which significantly impacted cloud technology development.

Apple, Microsoft, and IBM created technology that improved the cloud environment and promoted the use of cloud servers and server hosting in the 1970s and 1980s. Then, in 1999, Salesforce made history by becoming the first business to offer business applications online.

In fact, one of the paramount applications of cloud computing was Salesforce. Businesses had to purchase numerous licenses for traditional software and install physical copies on each employee's computer. Whether they were a tiny startup or a large organization, they could utilize Salesforce to expand their business and access the application whenever they needed it online. It paved its way with its revolutionary new approach to simple, efficient, and economical software.

Amazon introduced AWS in 2006, offering cloud-based storage as well  as computing services. The other major technology companies, like Google & Microsoft also introduced their own set of related solutions/offerings.

History of Cloud Computing 
History of Cloud Computing 

Types of Cloud Computing Services 

  1. IaaS

IaaS, aka infrastructure as a service, allows for flexible computing. It works under the premise that you already have some foundational IT systems in place and enables you to add additional building blocks as required.

Companies with their own operating systems that want tools to sustain those systems in the long run should use this strategy. Companies have the opportunity to design at scale utilizing pre-built components thanks to connectivity to servers, firewalls, hardware, and other infrastructural facilities.

IaaS can act as a platform for executing particular projects with particular IT needs. For instance, a company creating new software might utilize IaaS to set up a testing environment before releasing it. On the other hand, an e-commerce business might host its website using IaaS. Because its infrastructure can swiftly scale in reaction to unexpected traffic surges, such as during a holiday sale, IaaS is the best option in that scenario.

  1. SaaS

In this model, the cloud provider runs the customer's applications on its servers. Customers can use their login credential to utilize them via the internet. SaaS users benefit from subscriptions to the service on a pay-per-use basis rather than purchasing and maintaining their own computing equipment.

SaaS is the best option for many firms because it enables them to quickly use the most cutting-edge technology available. The demand for internal resources is lessened by automatic updating. By adding new services or features as they expand, customers may scale services to support varying demands. 

For every requirement of a business, including:

  • Customer satisfaction
  • Customer relationship management
  • Customer support
  • E-procurement
  • Procurement
  • Financial planning
  • Human capital management
  • Talent management
  • Payroll
  • Management of supply chains
  • Enterprise planning, and more, a modern cloud suite offers comprehensive software.
Cloud models
  1. PaaS

Organizations that use PaaS benefit from having access to the developer tools they require to create and maintain mobile and web applications without purchasing or maintaining the underlying infrastructure. The consumer uses a web browser to access the services, while the supplier hosts the infrastructure and middleware components.

PaaS solutions must include readily available programming components that let programmers add new functionality to their apps, including cutting-edge technologies like chatbots, blockchain, artificial intelligence (AI), and the Internet of Things (IoT). The optimal PaaS solution must also offer the following:

  • Big data analytics
  • Content management
  • Database Administration
  • Systems management
  • Security for analysts, end users, and professional IT administrators.
  1. FaaS

Function-as-a-Service allows programmers to create, compute, operate, and administer a wide range of features or solutions as functions without having to keep up with their own cloud computing architecture.

These functions make use of third-party deployment/services to manage server-side functionality and state in an event-driven execution architecture that operates in empty containers.

FaaS offerings are accessible on popular public clouds and can be deployed on-premise, giving enterprise IT for app development important new features.

The top-notch FaaS examples include:

  • Cloud Functions (A Google’s Product)
  • OpenFaaS (open source)
  • Amazon's AWS Lambda
  • Azure Functions (open-source and Serverless)
  • IBM Cloud Functions
Types of Cloud Computing
Types of Cloud Computing

Main Characteristics of cloud computing

  • Self-service on demand

As the name suggests, this technology has the ability to keep most of the resources readily available for self-service. The server client can continuously monitor the uptime, capabilities, and allotted network storage, which is an important aspect, where a client can also manage the computer power to suit his demands.

  • Calculated and reported service

One of the numerous features of the cloud – among others – that makes it the greatest option for businesses is reporting services. Measuring and reporting services are beneficial for cloud service providers' clients as well. 

It makes it possible for them to keep track of and report on which services have been used, and for what reasons. This supports billing oversight and guarantees efficient resource use. It can also help their client understand and optimize their operations.

  • Resources Pooling

Using this ability, a cloud service provider can distribute resources to various clients, offering each one a unique set of services based on their needs. 

It is a multi-client approach that can be used for services, including data processing, bandwidth provisioning, and storage. There is no conflict between the client experience and the real-time administration process of resource allocation.

  • Automation

In layman's words, it is the practice of maximizing technology while minimizing physical labor. Technically, it refers to the capacity of a cloud service to be installed, configured, and maintained automatically.

Automation is not, however, as simple to achieve in the cloud ecosystem. Virtual machines, servers, and a lot of storage must be installed and deployed. These resources require ongoing maintenance even after the successful deployment.

  • Multi-tenancy

Very similar to what we see in multi-storey buildings in cities with a large population, multi-tenancy is among the most beneficial attributes in this row. A single instance of the software can serve a variety of user groups when a multi-tenancy system design is used. 

It implies that numerous clients are utilizing identical computing/storage resources. However, their data is kept completely separate and safe.

  • Top-notch Payment Structure 

The payment system is crucial because it assists with cost-cutting. Due to the increased capability, choices for cloud plans are offered in a range of price points. Users will find the payment option easy to use and time-saving when processing payments.

Deployment Models 

In case you are musing which model will suit your business’s needs, See these top 4 deployment-related cloud computing examples:

  1. Public Cloud 

As explained above, it is a global service - available for all and shared between various types of users on a free or paid subscription basis. These are run and owned by independent businesses.

In this scenario, the infrastructure – alongside the software as well as the hardware – are all controlled and taken care of by separate companies. Customers use accounts that are available to almost anyone to purchase services. 

  1. Private Cloud 

Only a small number of clients, usually just one enterprise, individual or organization, have access to private clouds. This service can be hosted in the business's own or leased data center. Numerous customized services are available for such implementations.

  1. Hybrid Cloud 

They integrate both the above-listed types to let you enjoy their benefits combinely. Organizations generally utilize private clouds for sensitive data/workloads and public clouds to address varying computing demand. Between them, data and applications frequently flow automatically. Organizations now have more flexibility without giving up their current security, compliance, or infrastructure.

  1. Multicloud

If you can recall, Salesforce just introduced Hyperforce, the upcoming infrastructure design that lets global companies to grow safely like never before, in collaboration with all of the major public clouds. It’s an example of multicloud.

When businesses use numerous clouds from various providers, it is called a multicloud. This has a lot of potential advantages. For instance, you can mix and match features and functionality by working with several distinct providers. An extremely sensitive project can be kept with a super-secure service provider while a general-purpose project can be kept in a cost-effective service. 

A multinational corporation or similar business will find it very useful. Depending on who gives the finest service in their area or who is most experienced with compliance with regulations in their nation, teams in Asia and North America can use various service-providers.

Benefits of Cloud Computing

  • Scalability

Demand forecasting is a full-time job in a legacy system, but with the public cloud, a business can speedily create an autonomous surveillance system to handle the task on your behalf. Based on the data you have, you can appropriately escalate or scale down the amount of labor you do.

  • Enhanced security

A top priority of every business is to store information in a secure, long-lasting location. Customers' data is stored in the cloud extremely safely while being accessible whenever and wherever it is needed. Additionally, all data kept in the cloud is protected and encoded to secure communications. 

  • Cost

It has always been difficult to arrange and purchase the appropriate hardware in a legacy system. It's possible that you will have to live with gear that you buy that doesn't meet your demands indefinitely. Since there is no need to purchase any hardware, the cloud solves this problem. 

Instead, you pay to use the hardware provided by the host, and when it no longer meets your needs, you can release it and install a better configuration. Because you only pay for the time you really use, you can save a substantial amount of money this way.

Disadvantages of Cloud Computing 

  • Incapability and lack of knowledge

Organizations are having trouble keeping up with the ever-increasing necessity for tools and personnel with the adequate skill sets and expertise to plan, implement, and handle workflows and data in a cloud while cloud-supporting technologies progress quickly.

  • Cloud downtime

Including any other IT system, the cloud is susceptible to technical issues like reboots, network disruptions, and downtime. These occurrences have the potential to cripple business operations and procedures and cause financial harm.

You should make plans for business resilience and cloud outages. Moreover, you should also try to aim for reducing the severity and frequency of outages while maintaining the highest degree of service availability for your clients and employees.

  • Cloud migration

Complications frequently arise when transferring programs and other data to a cloud environment. Migration initiatives usually go over budget and take longer than expected. Resettling workloads and data is a topic that is moving from a local data center to the cloud that is frequently disregarded until unanticipated costs or slowdowns appear.

Cloud Computing Use Cases and Examples

Even though thousands of individuals use countless desktop and smartphone programs that use this strategy on a frequent basis, this technology is usually challenging for beginners and non-techies to understand.

Nevertheless, cloud computing is simple to understand if you ignore the technological complexities. In the forthcoming years, it will also get more inexpensive and available to everybody due to its rapid proliferation.

Before getting into some widespread use scenarios, it's crucial to understand that most cloud computing providers fall under SaaS, the best model for application distribution where customers only pay for data and services they genuinely use. So, these are the top use cases shown below:

  • Hosting services for files

The cloud concept is the cornerstone for the bulk of storage systems created to store data and preserve backup copies. Users can now upload and download data, access file systems remotely, and synchronize information in real time across numerous devices. Additionally, customers who frequently travel need to maintain their documents and business data up to date and provide the highest value to synchronize data.

  • Chatbots

It's a practical tool that lets businesses automate and streamline the management of online banking services and sales funnels. Interacting directly with one of the eminent virtual operators enables a chatbot to foresee prospective customers' questions. 

Additionally, it might point visitors to the appropriate resource, which might be a particular business proposition, a FAQ page, or the Contact us page, from where they can make an association with the sales department.

  • Platforms for video streaming

We use on-demand streaming services, amongst many other things, to watch sports, television, movies, and even live events. All of them are concentrated on the cloud computing technology’s solutions, whether owned or leased. Regardless of the fact that service providers employ pricey hardware/software in their operations, end consumers benefit from affordable services. 

Fragmenting the service makes it possible for everybody to afford it. Here, we're taking a closer look at a number of servers that work together to support streaming services. Additionally, they offer technologies for recovery that can fix transmission faults, maintain a steady video stream (and keep it synchronized in real-time), and other things.

  • Secure storage of personal data

Here, we have programs that can synchronize data with cloud servers while also memorizing and storing passwords. Based on the service you are availing, providers have a wide range of options to ensure security. They frequently use end-to-end strong cryptography, which makes sure that only the owner has access to the credentials.

  • Workplace Cloud Computing

You used to keep data on your hard drive at work, but you frequently lost them due to power outages and system problems. These days, you probably save them in the cloud, which automatically saves updates so you may view them from any location.

  • Home cloud computing

You probably utilize this in your daily life without even being aware of it. You may now digitally access movies and music through cloud-based streaming services like Netflix and Spotify rather than keeping physical copies on shelves or cabinets. 

  • Social Media Data

What about the pictures and remarks you publish on social media? Twitter and Facebook are two leading cloud computing examples of SM platforms that keep user media/content in the cloud/online.

Cloud Computing Security

Businesses considering cloud adoption, mainly public cloud’s adoption, continue having security as a chief issue. The public cloud is a multi-tenant environment, so public CSPs share their underlying hardware framework with various clients. Significant isolation between logical computing belongings is required in this context. In addition, account login credentials are used to safeguard access to open cloud storage and compute services. 

For fear of interruptions, loss, or theft, many enterprises constrained by intricate regulations and governance standards continue to be resistant to storing data or workloads on the public cloud. 

This reluctance is waning, thanks to the reliability of logical isolation, the addition of data encryption, and a variety of identity and access control systems that have enhanced security in the public cloud platform. 

In the end, it is the individual business user's obligation to create the architecture of the workload, assemble the cloud resources and services in which it runs, and put into practise the security controls offered by the cloud provider in order to nurture and maintain a secure cloud ecosystem.

Cloud Computing Vs. Traditional Web Hosting

  • Software Installation

Any software for cloud computing can be installed whenever you need it. You can utilize any application when using it without being required to buy a drive. You will be done for the day after you select the service and connect to it.

Instead, saving hours, effort, and cash is the most effective approach. You can also make adjustments in accordance with your company's needs because it is not kept anywhere on the disc.

Due to its reliance on the prerequisites of an operating system, this strategy is useless when used with conventional computing. OS is only one component; there are other others, such as memory, hardware, etc.

  • Alternative Arrangements

In computing in the cloud, every detail is planned. The backup configuration is the same as well! It has a DRaaS application, which enables backup access in the event it is unexpectedly wiped. Data upkeep is a piece of cake because everything is computerized.

On the other hand, traditional web hosting does not rely on digitalization or have standards for crisis management. This results in traditional hosting still having issues, which is problematic for businesses.

The Future of Cloud Computing 

It is only in its early stages, despite having made significant progress already. Quantum and artificial intelligence-driven exponential growth in processing power, as well as other emerging technologies to boost cloud use, are likely to be part of its future.

Following are a few changes that could soon be seen in a cloud-native ecosystem near you:

  • Businesses will adopt multicloud methods more frequently to integrate services from several suppliers.
  • The IoT and wearable technology will continue to grow rapidly. Upcoming sensors in clothing, houses, and communities will develop from fitness trackers, thermostats, and security systems that were initially cloud-connected.
  • Businesses will use 3D printing and the cloud to deliver personalized merchandise.
  • Both large and small organizations will develop more hybrid clouds.
  • Platforms with little or no programming will keep decentralizing technology. They will bring developers the tools they need to make their own applications that address issues without the aid of coders and app developers.



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February 26, 2024
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