9 minutes to read

March 25, 2024

In the 1960s, researchers wanted to find a way for two or more people to use a computer system simultaneously. This was the first concept of cloud computing. In the decades that followed, technology advanced and the internet became commonplace. The cloud was also able to evolve into the form that it takes today. In 2022, 60% of corporate data was stored in the cloud, and that percentage will only increase. Millions of people use the cloud to store photos, videos and other media on file storage websites. It is a universal technology that makes global file sharing and communication easier. However, few people fully understand cloud computing and how it works. Learn more about this concept and how it improves your day-to-day workflow.

Cloud computing definition

Cloud computing means accessing files, programs and software virtually through the internet. It is the opposite of on-premises IT, where a company has to provide servers for its data and software applications to its employees. When companies were first switching to digital resources, they were able to store their data in carefully air-conditioned server rooms. Employees received laptops with various software programs already installed. However, the number of necessary software tools continues to grow and corporate data collection has skyrocketed. Local hard drives struggle to up. The cloud allows companies to scale their data collection and storage without continuously growing their resources. There are still a few myths and misconceptions about cloud computing. People either believe it is expensive to use or a silver-bullet solution for everything. In reality, there are times when the cloud is valuable to companies and times when on-premises IT might be the better storage option.

What is the cloud?

Think of the cloud as a virtual data processing and storage space. It is often used as the noun version of cloud computing. You might store your vacation photos in the cloud instead of saving them on a hard drive or analyze company data through software that uses cloud storage. Cloud computing isn't free from servers and hardware. Instead, the data is stored on remote servers that are managed by third parties which are responsible for keeping your servers running and active. The cloud can be private or public depending on your needs. A company might invest in private cloud technology to protect sensitive client data, while consumers use the public cloud when they log in to various apps.

How does cloud computing work?

With cloud computing, data is sent via the network connection to remote servers. This information can be seen and used by anyone who is authorized to access it. For example, when you save a document on your computer's hard drive, you are the only one who can see it. However, by saving the document in a Google Drive folder in the cloud, multiple people can read and edit the various pages at the same time. This is because the data is saved on remote servers, to which the internet acts as an intermediary. As you research the cloud, you can decide how much you want to know about the underlying processes and structures involved in developing cloud networks. Cloud storage providers build advanced infrastructure with highly reliable servers, so their customers have access to the data they need when they need it.

Characteristics of cloud computing

The primary difference between cloud computing and on-premises IT is that data is stored through the internet with cloud systems. However, there are a few other characteristics to consider:

  • It offers enhanced security, especially with two-factor authentication.
  • The systems can be more resilient when managed through trusted companies.
  • Data is easier to maintain because you don't need an IT team to manage your data.
  • The usage is easier to scale, meaning your company can use more data as needed. Both large and small companies can use cloud computing to improve their operations and make them more modern.

How to use the cloud

You can decide how much involvement you want in establishing cloud systems within your business. Many companies use the cloud by signing up for data storage services and software systems that use cloud computing. If you have a Google Drive, you are already using cloud storage. It's possible to switch to cloud computing for your business with the help of an IT consultant or you can ask the software companies you want to work with for support.

Cloud computing applications

There is a wide range of applications for cloud computing, whether you are using it for professional or personal use. Here are a few examples of cloud storage across different channels.

Personal

You might already use cloud computing in your personal life without realizing it. Here are a few ways the average consumer taps into the cloud:

  • Planning a wedding with your bridal party using online spreadsheets.
  • Streaming your favorite songs through digital music services.
  • Sharing vacation photos via file storage websites.
  • Calling a friend using a video conferencing service. Each of these examples allows multiple users to access the same data from multiple locations.

Business

Businesses can also benefit from using cloud computing. Here are a few ways companies of all sizes embrace this technology.

  • Companies can store important information like employee records on secure servers.
  • They can control who has access to sensitive documents through security services.
  • They can collect data that would otherwise take up hard drive space and store it remotely.
  • Teams can collaborate on projects across departments, offices and countries. Regardless of whether the company is a small dental office or a global advertising agency, there are benefits to using the cloud.

Public

There are also cloud applications for public and government offices. Here are a few places you might encounter cloud computing.

  • Students can work on projects together while their teachers supervise virtually.
  • Libraries can provide access to information and important community resources.
  • Park systems can provide information about local nature and historical sites.
  • Citizens can attend meetings virtually to get involved in their local communities. The cloud allows public departments to modernize their operations. They can provide more tools and resources for residents so they are more informed and engaged in their communities.

Types of cloud computing

Multiple types of cloud computing meet the needs of different people and organizations. Here are three of the most common ones that you are likely to encounter.

  • Software as a Service (SaaS): This is one of the most common ways to access the cloud. Various software companies provide cloud-based tools and platforms for people to use.
  • Platform as a Service (PaaS): This option provides an environment for teams to build and develop apps. For example, a company might create internal apps for its staff or external systems for customers to use.
  • Infrastructure as a Service (IaaS): Users of this option gain access to the servers and storage provided in the cloud. It is the most flexible and open way to use cloud computing. You can see how these types start narrow, like using a cloud-based software app, and then expand to more advanced options for the companies that need them.

Benefits of cloud computing

There are several benefits of investing in cloud computing over on-premises IT. Here are a few reasons to consider this option:

  • Elasticity: The cloud can immediately meet the needs of companies. With cloud elasticity, a company could see a surge in website traffic without missing a beat.
  • Scalability: Companies can grow their employees and customers without worrying about onsite server space.
  • Ease: Internal teams don't have to worry about managing servers and hardware.
  • Security: Third-party systems and security features help protect your data. Cloud computing is also essential in modern business practices. Remote employees need to access data from their homes, whether they live down the street or across the country.

Challenges of cloud computing

Despite the value of these systems, there are also some drawbacks to using the cloud. Here are a few challenges to keep in mind.

  • Not all services are secure: You need to ensure that your vendors are reliable and utilizing security solutions that meet your needs.
  • Teams might use too many apps: App management is essential to remain within budget and to protect the data of your organization.
  • There's less control: Companies have to rely on outside vendors rather than managing data themselves. Additionally, companies need to have plans in place for revoking access after an employee leaves. Otherwise, someone outside of the company will continue to have access to sensitive data.

Cloud computing examples

One of the best ways to understand cloud computing is to see it in action. Here are a few examples that show how valuable this tool can be.

  • A marketing agency needs to develop social media content for a client. A copywriter and graphic designer work together to create engaging posts, even though they live in different states. They share the materials with the client over a video call.
  • A social worker meets with a client in their home. They can pull up the client's profile on their computer and take notes during the meeting to review later.
  • A company hires a remote employee. The HR manager can send them onboarding documents to sign virtually and training materials they work through online. The employee is ready to work even though they never once visited the office. These examples show how data is stored in an online portal that relevant people can access wherever they are.

Cloud services

Cloud services empower people to use the cloud to achieve their goals. Here are a few examples of cloud solutions.

  • Workplace collaboration: People can store documents, photos and other important information in this location.
  • Social Media: Users can upload content to share with friends and followers. There are also plenty of B2B cloud services that allow brands to store employee records, manage customer data and store key insights that they use to drive their companies forward.

Cloud-based technologies

While cloud services provide storage and secure environments for users, cloud-based technologies are made possible with the help of cloud infrastructure. Here are a few examples of this.

  • Video conferencing: Teams can meet over the internet to discuss ideas and share updates.
  • Analytics dashboards: Companies can gain insight into their web performance through metrics that Google stores in the cloud.
  • Workplace collaboration: Employees can schedule meetings, chat throughout the day and send messages through these types of toolss. The cloud makes all of these apps possible, and many more. In 2023, there were more than 30,000 SaaS companies across the world.

What is a cloud environment?

A cloud environment is a pool of servers that work together to store data. It is essentially the ecosystem of cloud computing that you need across your business. The cloud environment is a big-picture view of your storage solutions. Once you start talking about specific elements, like cloud servers or cloud-based storage, your discussions become more detailed.

What is on-demand computing?

On-demand computing (ODC) allows companies to provide access to resources as needed, rather than giving their clients full access at once. For example, a software company might be able to scale its abilities for a client but limit the client's access and resources while it is still small. ODC is made possible by the cloud. It is economical and responsive, which benefits both the vendors and the companies that use it. ODC allows software companies to set tiers of access, which are essential to many of their business models.

The future of cloud computing is bright

With a projected annual growth rate of over 14% through 2030, cloud adoption continues to grow as more companies explore this technology. Consumers also feel more comfortable using the cloud as they embrace apps and software. This means cloud computing has a bright future as more innovators embrace this option for solving professional and personal problems.

This content is provided for information purposes only. All information included herein is subject to change without notice. Verizon is not responsible for any direct or indirect damages, arising from or related to use or reliance of the above content.