What is Cloud Computing in Simple Terms?

With ever-growing technological developments in modern times, it has become essential for organisations to stay competitive. But how exactly can they do that?
The answer is: By embracing cloud computing.
Cloud computing is a model that provides access to the large pool of computing resources, providing scalable infrastructures such as networks, cloud software development services, application, back-end app processes and file storage with minimal hassle, as pointed out by the National Institute for Standards and Technology. It facilitates the mobility of a user’s experiences across platforms as well as devices.
Its importance is such that the CEO of Microsoft, Satya Nadella said that the cloud is the world’s computer and Gartner predicts that more than half of the organisations around the globe using cloud today would entirely adopt an all-cloud strategy by 2022.

Cloud Computing Benefits

Cloud computing benefits the organization in several ways; it is a practical approach to reduce costs, increase scalability and flexibility along with agility. Hence, it proves to be highly efficient and productive.

  • On-demand Self-Service

National Institute for Standards and Technology highlights that by using cloud computing business can have on-demand self-service, for example, network storage and server time, when required, through a single provider.

  • Pooled computing resources

Cloud Computing provides a pooled system to cater to multiple users by using different model services. It offers various physical and virtual resources as per consumers’ need. The subscriber cannot control the resource location like storage, memory, or network bandwidth, but the user can specify its country or data centre to avail cloud services.

  • Rapid, flexible and controlled

Cloud capabilities for different programmers such as laptop, computer and mobile phones can be provided to the subscriber rapidly and with aided flexibility. The resources are controlled and monitored hence providing transparency to both the user and the provider.

  • Cost Reduction

The main aim of the organizations to opt for cloud computing is the idea that it is cost effective.  According to the International Journal on cloud computing, cloud computing reduces the cost by 45.5%. It reduces the cost of companies primarily by their subscription model. The technical maintenance is done by the providers, and so, companies save the cost of IT staff training and equipment.

  • Cloud Services Model

The most dominant of all cloud services model, SaaS consists of applications and system infrastructure software. The provider, for instance the software development company installs the cloud software services on cloud infrastructure, and the user can use the services by subscribing or by paying. The cloud services don’t have their software or hardware, and the users do not need to control the network, servers or storage unlike in traditional software. Some prominent examples of SaaS are Google docs and Microsoft Office 365.

  • Cloud Platform as a Service (PaaS)

As the name suggests, the PaaS provides a platform that includes hardware, software, networks, storage, and other operating systems to the users. Similar to the SaaS, the consumers cannot control the cloud platform but can manage applications. The consumers need not know about the storage, the memory they need for their applications. Some examples of PaaS are Microsoft Azure and Google App Engine.

  • Cloud Infrastructure as a Service (IaaS)

Cloud Infrastructure permits users to use storage, networks and other resources to run different software encompassing applications and operating systems. The fundamental idea of IaaS is virtualization. It is like the basic building blocks of computing that can be rented by users. While the users cannot control the cloud infrastructure but they can manage operating systems. An example of IaaS is Amazon EC2.


As more and more businesses are adopting cloud computing, it is becoming harder to achieve competitive advantage. Plus, over time people are realising that just as renting a property might not be cheaper than buying a property in the long-term, it might not be economical to use cloud computing and pay on-the-go basis.

Having said that, there are a number of benefits of cloud computing as well. It all depends on your individual requirements. So, do your research beforehand so that you can opt for the right solution for your business.

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