Cloud Computing Explained

In today’s digital world, almost every business, whether small or an enterprise, depends on technology to run daily operations. Traditionally, organizations managed their own physical data centers, filled with servers, switches, storage devices, and network equipment. While this on‑premises setup works, it comes with a major limitation: you must buy and maintain all the hardware yourself, even if you only need it once in a while.

Imagine your company hosts a large annual event that requires extra computing power. You would need to purchase new servers and storage just to handle this temporary workload. After the event, the equipment remains underused, but your business has already spent the money.

This traditional model is known as on‑premises computing, and it often leads to unnecessary cost, maintenance overhead, and limited flexibility.

This brings us to a more modern, efficient approach…

What Is Cloud Computing? 

Cloud Computing is the delivery of IT resources, such as servers, storage, databases, networking, email, analytics, security, and applications, over the internet on a pay‑as‑you‑go basis.

Instead of buying physical hardware upfront, organizations can rent computing resources from a cloud provider and pay only for what they use. This makes scaling up or down extremely easy and cost‑effective.

In simpler terms:

Cloud computing allows you to access computing power from a remote data center through the internet, without having to manage the physical infrastructure yourself.

These data centers (the “cloud”) are massive buildings filled with servers, maintained 24/7 by cloud providers like:

• Microsoft Azure
• Amazon Web Services (AWS)
• Google Cloud Platform (GCP)
• IBM Cloud
• VMware Cloud
• Salesforce

If we connect this to our earlier example, cloud computing means that instead of buying new servers for your annual event, you can simply scale up your cloud resources for the event and scale down afterward, paying only for what you use.

Types of Cloud Computing

Cloud computing is categorized in two ways:

1. Cloud Deployment Models: How the cloud environment is hosted
2. Cloud Service Models: What type of service the cloud provides

Let’s break them down clearly.

1. Cloud Deployment Models (Types of Cloud)

To make this easier to understand, let’s use a real‑life scenario.

Imagine you need to get to work daily, and you have three options:

Option 1: Drive your own car

Maximum comfort and control, but you handle all fuel and maintenance.
➡ This represents a Private Cloud.

Option 2: Use a ride‑hailing service

Some privacy, no maintenance responsibility, and moderate cost.
➡ This represents a Hybrid Cloud.

Option 3: Take public transport

Cheaper, shared with others, widely accessible.
➡ This represents a Public Cloud.

Now let’s explain each cloud type fully.

Private Cloud

A private cloud is used exclusively by a single organization.
It can be hosted:

• On‑premises, in your own data center, or
• Off‑premises, managed by a third‑party provider

Businesses that require high security, strict compliance, or complete control often choose private clouds.

Public Cloud

A public cloud is owned and operated by cloud providers (e.g., Azure, AWS).
Resources such as servers and storage are shared across multiple customers but securely isolated.

It’s cost‑effective, scalable, and perfect for organizations that want flexibility without managing hardware.

Hybrid Cloud

A hybrid cloud combines both private and public cloud environments.

An organization can choose:

• Which systems remain on-premises
• Which systems run in the public cloud

This offers the best of both worlds, security + flexibility.

Community Cloud

A community cloud is shared by a group of organizations with similar requirements (e.g., government agencies, healthcare institutions).
It can be managed internally or by a third‑party provider.

2. Cloud Service Models (Types of Cloud Services)

These describe what you’re using the cloud for.

Infrastructure as a Service (IaaS)

IaaS provides on‑demand access to fundamental IT resources such as:

• Virtual machines
• Storage
• Networking

You manage:

• Operating system
• Applications
• Data
• Middleware

The provider manages the physical infrastructure.
Example: Azure Virtual Machines, AWS EC2

Platform as a Service (PaaS)

PaaS provides a platform for building, testing, and deploying applications without worrying about:

• Servers
• Operating systems
• Storage
• Network layers

Developers only focus on writing code.
Example: Azure App Service, Google App Engine

Software as a Service (SaaS)

SaaS delivers software applications over the internet via a web browser.
Users do not manage:

• Infrastructure
• Operating systems
• Application updates

Everything is handled by the provider.
Example: Microsoft 365, Salesforce, Gmail

Benefits of Cloud Computing

Cloud adoption comes with major business advantages:

1. Cost Savings

You only pay for what you use; there’s no need to buy expensive hardware or worry about maintenance.

2. Security

Cloud providers use advanced security tools, access controls, and compliance frameworks to protect data.

3. Scalability

Scale your IT resources up or down instantly based on business demand, without physical limitations.

4. High Availability

Cloud providers offer built-in redundancy and disaster recovery across multiple regions.

5. Flexibility and Remote Access

Teams can access data and applications from anywhere in the world.