A Beginner’s Guide To Cloud Computing in 2024
By the end of 2024, end users will have spent an astounding $678.8 billion on cloud computing. And with the average enterprise using some 1,295 cloud services, it is hardly surprising that Vice President Analyst at Garner describes the Cloud as “essentially indispensable.”
But what exactly is cloud computing and why is it so popular? Cloud services refer to software and programs that run in “the Cloud” (essentially over the internet). They can be accessed from anywhere and have low operating costs due to their pay-for-what-you-need model.
Read on to learn all you need to know about cloud computing, how it works, the different types and how to make best use of the Cloud.
What is cloud computing?
The rise of remote working has led to significant, widespread use of on-demand IT services delivered via the Cloud. Cloud apps, like Google Drive and Microsoft 365, allow you to access files or programs remotely over the internet simply by logging in from a device or computer. They are also updated in real-time making the Cloud particularly useful for workplace collaboration.
Common cloud computing services include:
- Storage
- Servers
- Databases
- Software & apps
- Intelligence
Cloud-based services offer flexible, pay-as-you-go payment options, with the choice to expand your storage space if you need to.
Why is it called the Cloud?
Cloud computing services gained their namesake due to their secure virtual locations. As the precise location is unimportant to consumers, virtual storage was once referred to as “belonging in a cloud somewhere”. It has now become a widely accepted term.
How does cloud computing work?
Cloud computing utilises a technology known as virtualisation. This allows IT services traditionally bound to hardware to be provided virtually. The Cloud is made possible using a collection of simulated virtual machines that operate the same way as a physical computer.
A company’s data and information is stored on these virtual servers and looked after by a cloud infrastructure provider such as Amazon Web Services (AWS) or Microsoft Azure. Users can access this information on any device with a secure internet connection.
Looking for support with setting up your services in the Cloud? Trusted IT provider Arc Systems, is a Microsoft Gold cloud solution partner. Arc offers multiple cloud services, including hosting your systems in a private cloud, offering a hybrid cloud solution with Office 365, or even the Microsoft Azure public cloud.
What industries use cloud computing?
Businesses across all industries use cloud computing to save time, scale operations, and store data.
Industries leveraging cloud computing include:
- Banking and finance: Increasing numbers of financial institutions are switching out their legacy software for SaaS alternatives, although security remains a concern with new EU law DORA coming in for 2025
- Advertising & Marketing: Cloud computing is particularly helpful for marketing automations and tracking and analysis.
- Healthcare: Healthcare providers are leveraging cloud tools to store and sort patient data, analyse information, and even make diagnoses.
- Automotive: From engineering simulations to analytics, the automotive industry is making significant use of cloud services.
- Music & Entertainment: Cloud-based streaming services like Netflix and Spotify have changed the way we view entertainment.
Cloud-computing is also widely used across agriculture, education, energy, retail, travel and more.
What are the benefits of cloud computing?
Cloud computing has become essential for businesses that need to rapidly deploy tools and services. Cloud services are highly cost-effective as they eliminate the need for on-site hardware and reduce staffing needs. In fact, they save businesses up to 30% on IT costs.
Cloud services allow for real-time updates, allowing for easy collaboration and immediate file access for staff and clients. With seamless remote management, businesses can operate applications, store data, and manage communications effortlessly.
Cloud services also provide improved security options, including built-in protocols and compliance support. Cloud disaster recovery capabilities can also safeguard critical data and systems.
Types of cloud computing
Three main types of Cloud service include public, private, and hybrid.
Private Cloud Services
If your business wishes to use a cloud resource exclusively, the private cloud (also known as an internal or corporate cloud) is the best solution. Private cloud services create a private internal network for approved users within the business that is highly secure. It uses firewalls to help keep sensitive data confidential and protected.
A private cloud offers greater control over resource management and access, increased security through obscurity, and high performance due to exclusive access. However, it has higher maintenance costs and limited scalability, as it relies on the business’s internal resources.
At Arc Systems, we can host your company’s systems in our secure private cloud. We will maintain the infrastructure on your behalf and keep everything running smoothly.
Public Cloud Services
Public clouds provide a shared platform used by multiple businesses across the globe via the internet. They are often a cheaper solution as your company will share the Cloud with others. However, this does not affect speed or performance.
All of your employees can use the same application and services simultaneously, provided they have an internet connection. They operate on a pay-per-use basis. Public clouds are owned, maintained, and run by businesses, government agencies, or both.
Public clouds offer several advantages, including:
- Lower costs due to shared resources
- Independence from specific locations with no need for on-site servers
- Quick and simple setup with online deployment
- Unlimited scalability at affordable rates
However, they come with disadvantages such as lower security due to shared resources, and less customisation options since they are designed for multiple users.
Hybrid Cloud Services
This solution usually combines the public and private cloud environments. This involves the connection of at least one public cloud and one private cloud to manage computing workloads. It allows businesses to reap the benefits of multiple cloud computing vendors to create a cost-effective solution.
A hybrid cloud offers the agility of public clouds with the customisation of private clouds. It enables faster data transfers and optimisation for specific business needs. It provides flexibility by allowing sensitive data to be stored privately and standard information publicly, and ensures reliability by using private infrastructure if public servers fail.
On the flip side, it can suffer from a lack of user control over changes and potential performance issues due to public cloud compatibility.
What are the 3 main cloud models?
The most common types of cloud models include the following.
Infrastructure as a Service (IaaS)
This is the most basic cloud service. This is when a business rents its required storage from a cloud provider. They can then start building new applications using this online space and can update it at any time, anywhere. We provide the space; you bring the tools.
Companies benefit from IaaS in multiple ways:
- Reduce company IT expenditure: Escape the set up and maintenance fees that come with managing a physical data centre. Pay in monthly instalments and gradually increase your storage space as your business grows.
- Create and release apps faster: By using the Cloud, the required underlying infrastructure can be set up in hours, ready for you to get started.
- Expand scale and enhance IT performance: IaaS will support your ability to grow into a global business. You will be able to keep up with increased demand and ensure your IT platform runs at optimum speed for every user around the world.
Platform as a Service (PaaS)
This service provides everything a company needs to develop their own unique applications. Renting these tools instead of owning them, can save valuable time and money. This online platform can be accessed on most devices using the internet.
The benefits of PaaS include:
- Avoid software licensing fees: Gain access to sophisticated tools at affordable prices. You remain in control of your applications and the Cloud provider will look after your infrastructure and development tools.
- Reduce coding time: Achieve specialised effects with built-in, pre-coded components without hiring more staff.
- Handle the entire application lifecycle: Receive support across every stage of web application creation in one bespoke platform.
Software as a Service (SaaS)
This service involves connecting users to cloud-based apps via the internet, like Microsoft Office 365. Your business will rent an app for customer/employee use. Users just need to log in on a web browser to use your application, for example, Slack or MailChimp. Both hardware and software will be managed by your service provider.
SaaS services offer multiple advantages:
- Mobilise your workforce: Your team will be able to use the app in any location as long as they have internet access. Your cloud provider will ensure your app is optimised for every type of device from desktops to tablets and mobile.
- Analyse app data, anytime, anywhere: All data relating to your application will be stored in the cloud. Information can be accessed, edited and restored if a device breaks.
- Automatic scaling: SaaS services will automatically increase or decrease storage space according to the needs of your business application. You can rely on your cloud provider to keep your application performance high, no matter the demand.
How can businesses use cloud computing?
Businesses and individuals leverage cloud computing for multiple purposes.
For large-scale storage
Services like Dropbox, Google Drive, and OneDrive provide scalable cloud storage solutions. A small business can store all its documents, images, and other digital assets in the cloud, allowing employees to access files from anywhere.
To build & test innovative applications
Businesses may use high-tech, cloud-native tools to develop, deploy and update applications for web and mobile. Developers might use platforms like Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure to build, test, and deploy apps.