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Cloud Computing

  • Date: 12-Apr-24
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Finance Management

About Cloud Computing


Cloud computing is the availability of computing resources (such as storage and infrastructure) on demand as services over the Internet. This eliminates the need for individuals and businesses to manage physical resources themselves and only pay for what they use.

How does cloud computing work?

Cloud computing service models are based on the concept of sharing computing resources, software, and information on demand over the Internet. Companies or individuals pay to access a virtual pool of shared resources, including computing, storage, and networking services, that are located on remote servers owned and managed by service providers.

One of the many benefits of cloud computing is that you only pay for what you use. This allows organizations to scale faster and more efficiently without having to purchase and maintain their own physical data centers and servers.

In simpler terms, cloud computing uses a network (most commonly the Internet) to connect users to a cloud platform where they can request and access leased computing services. A central server handles all communication between client devices and servers to facilitate data exchange. Security and privacy features are common components that keep this information safe.

There are no one-size-fits-all solutions when adopting a cloud computing architecture. What works for another company may not work for you and your business needs. This flexibility and versatility is one of the hallmarks of the cloud, allowing businesses to quickly adapt to changing markets or metrics.

The beginnings of cloud computing

The origins of cloud computing technology date back to the early 1960s, when Dr. Joseph Carl Robnett Licklider (link resides outside of, an American computer scientist and psychologist known as the "father of cloud computing," presented the earliest ideas of global networking in a series of notes discussing the intergalactic computer network. However, it was not until the early 2000s that modern cloud infrastructure for business emerged.

In 2002, Amazon Web Services launched cloud storage and computing services. In 2006, it introduced Elastic Compute Cloud (EC2), an offering that allowed users to rent virtual machines to run their applications. That same year, Google introduced Google Apps (now called Google Workspace), a collection of SaaS productivity applications. In 2009, Microsoft launched its first SaaS application, Microsoft Office 2011. Gartner predicts that global end-user public cloud spending will total $679 billion and is expected to exceed $1 trillion by 2027 (link is external to

Types of cloud computing deployment models

  • Public cloud

Public clouds are operated by third-party cloud service providers. They offer computing, storage, and networking resources over the Internet and allow companies to access shared resources on demand based on their unique requirements and business goals.

  • Private cloud

Private clouds are created, managed, and owned by a single organization and privately hosted in their own data centers, commonly known as "on-premises" or "on-prem." They provide better control, security, and management of data while allowing internal users to benefit from a shared pool of compute, storage, and network resources.

  • Hybrid cloud

Hybrid clouds combine public and private cloud models, allowing companies to leverage public cloud services while maintaining the security and compliance capabilities commonly found in private cloud architectures.

What are the benefits of cloud computing?

  • flexible

With cloud computing architecture, businesses and their users can access cloud services from anywhere with an Internet connection and scale services up or down as needed.

  • It is efficient.

Businesses can develop new applications and quickly put them into production without having to worry about the underlying infrastructure.

  • It offers strategic value.

Because cloud providers keep track of the latest innovations and offer them as a service to customers, businesses can gain more competitive advantage—and a higher return on investment—than if they invested in soon-to-be-obsolete technologies.

  • It is safe.

Businesses often ask: What are the security risks of cloud computing? They are considered relatively low. Cloud computing security is generally recognized as stronger than security in corporate data centers due to the depth and breadth of security mechanisms that cloud providers implement. In addition, the security teams of cloud providers are known as the best experts in this field.

  • It is cost-effective

Whichever cloud computing model is used, businesses only pay for the computing resources they use. They don't need to overbuild data center capacity to handle unexpected spikes in demand or business growth and can deploy IT staff to work on more strategic initiatives.

Use of cloud computing

You're probably using cloud computing right now, even if you don't realize it. If you use an online service to send emails, edit documents, watch movies or TV, listen to music, play games, or store pictures and other files, chances are that cloud computing makes it all possible behind the scenes. Various organizations, from small startups to global corporations, government agencies to non-profit organizations, have adopted cloud computing technology for a variety of reasons.

Here are some examples of what is possible with cloud services from a cloud provider:

  • Build native cloud applications.

Quickly build, deploy, and scale applications—web, mobile, and API. Leverage cloud-native technologies and approaches such as containers, Kubernetes, microservice architecture, API-driven communication, and DevOps.

  • Save, backup, and restore data

Protect your data more efficiently—and at a massive scale—by transferring data over the Internet to external cloud storage that's accessible from any location and any device.

  • Stream audio and video

Connect with your audience anywhere, anytime, on any device with high-definition video and audio with global distribution.

  • Deliver software on demand.

Software on demand, also known as software as a service (SaaS), allows you to offer customers the latest software versions and updates whenever and wherever they need them.


Ques. What is the cloud?

Ans. The cloud is a vast network of remote servers around the world. These servers store and manage data, run applications, and deliver content and services such as video streaming, webmail, and office productivity software over the Internet. Storing your files and data in the cloud frees you from relying on local computers and servers. Instead, you can access your data online from any device with an internet connection, whenever and wherever you want.

Ques. What is multi-cloud computing?

Ans. Multicloud computing means using multiple cloud computing services from more than one cloud provider for the same type of IT solution or workload. A multi-cloud strategy—which can include both private and public clouds—helps organizations mitigate risk and offers them increased workload flexibility. Choosing different offerings and options from more than one cloud provider allows organizations to create solutions that best suit their specific IT needs.

Ques. What skills are required for cloud computing?

Ans. In general, cloud computing does not require technical IT experience. Cloud computing simply refers to the provision of computing services over the Internet, including storage, databases, software, and analytics. Whether you have a basic understanding of computing concepts and terminology or are a more technical worker, you can apply the local computing knowledge and skills you currently have to the cloud.

Ques. How much does cloud computing cost?

Ans. Cloud providers typically use a pay-as-you-go pricing model, meaning organizations only pay for the cloud services they use. This helps companies reduce operational costs, run their infrastructure more efficiently, and increase or decrease cloud computing costs according to changing business needs. For example, Azure offers ongoing pricing with no upfront commitment and free services that include popular services free for 12 months and 55+ additional services always free.