What is cloud computing? Everything you need to know

The buzzword of today – cloud computing. Almost every business today is utilizing cloud computing in today’s world. Whether it’s a simple Zoom call or an entire SaaS software, cloud computing has become the driving force behind innovation, scalability, and cost efficiency for businesses of all sizes.

But what is cloud computing? What do businesses need to know about cloud computing as the world becomes more data-driven? How will they drive more value for their client base? These are some questions we’ll answer in today’s read.

Let’s begin by looking at a few applications of this revolutionary technology.

Cloud Technology Applications

The number of enterprises asking the question, “What are cloud solutions?” and then opting for the technology after learning the multifaceted benefits in the answer is skyrocketing. According to a Statista survey, 29% of enterprises worldwide spend more than $12 million yearly on public cloud services (Source: Statista). Rather than investing in and maintaining their own computing infrastructure or data centers, companies can rent access to these resources from cloud service providers. Cloud computing services encompass a vast array of options, from basic resources to advanced services. Some of the most common applications are

  • Storage
  • Networking
  • Processing power
  • Natural language processing
  • Artificial intelligence
  • Standard office applications

Virtually any service that doesn’t require physical proximity to the hardware can be delivered via the cloud, including emerging technologies like quantum computing.

It is the backbone of numerous services, ranging from consumer applications like Gmail and smartphone photo backups to enterprise solutions that host data and run business applications in the cloud. For example, Netflix relies on cloud computing to power its video streaming service and manage its internal systems.

The Significance of Cloud Computing and Cloud Service Providers in 2023

Cloud computing has become the dominant force in IT infrastructure and spending. Gartner predicts that, by 2025, over 50% of spending across various IT sectors like business process services, application software, infrastructure software and system infrastructure will have shifted to the cloud (Source: Gartner).

This shift is driven by businesses’ increasing reliance on cloud technologies offered by cloud service providers, particularly following the acceleration of digital transformation initiatives during the COVID-19 pandemic. Cloud spending continues to rise, with IDC forecasting substantial growth in cloud infrastructure spending and the consolidation of cloud as the default choice for enterprise computing platforms.

Core Elements of Cloud Computing

Cloud computing encompasses several constituent elements, each focusing on different aspects of the technology stack and use cases. Here are some of the key elements:

#1 – Infrastructure as a Service (IaaS)

IaaS includes the fundamental building blocks of computing, such as physical or virtual servers, storage, and networking. This is suitable for companies that want complete control over their infrastructure but require the technical skills to manage it.

#2 – Platform as a Service (PaaS)

For those wondering what is PaaS in cloud computing, it refers to the cloud computing architecture that provides not only infrastructure but also the tools and software needed to develop applications. It includes middleware, database management, operating systems, and development tools.

#3 – Software as a Service (SaaS)

SaaS delivers applications as services accessible via web browsers or apps, often on a per-seat or per-user basis. It covers a vast range of applications, from CRM solutions like Salesforce to office productivity tools like Microsoft Office 365.

#4 – Multi-Cloud Computing

Many businesses are opting for multi-cloud strategies to avoid vendor lock-in and leverage the best mix of technologies. This approach allows companies to connect and integrate services from multiple cloud providers, making management, application deployment, and security more challenging but more flexible.

Advantages and Disadvantages of Cloud Computing

Seeing how industries of today are racing against the competition to get their hands on the latest cloud technology, it’s vital to know how it’s beneficial and how it can be detrimental (yes, there are some cons to this next-gen technological advancement). Cloud computing services offer various benefits, but there are potential downsides as well.


  • Cost Efficiency: Eliminates the need for upfront infrastructure investments, reducing capital expenses.
  • Business Agility: Facilitates rapid deployment of new services and applications, accelerating innovation.
  • Scalability: Allows resources to be scaled up or down as needed, optimizing performance.
  • Managed Services: Cloud providers manage and secure the infrastructure, reducing the burden on in-house IT staff.
  • Global Access: Enables access to applications and data from anywhere with an internet connection.

Disadvantages of Cloud Computing:

  • Migration Costs: Migrating existing data and applications to the cloud can be complex and expensive.
  • Security Concerns: Despite robust security measures, concerns about data protection and privacy persist.
  • Latency: Accessing cloud services depends on internet connectivity, impacting performance.
  • Data Sovereignty: Compliance and data protection regulations may require data to be stored in specific geographic locations.
  • Vendor Lock-In: Adopting specific cloud platforms may limit flexibility and lead to dependency on a single provider.

Types of Cloud Deployments


Cloud computing offered by cloud service providers comes with various deployment models, each with distinct advantages and considerations:

Public Cloud

The public cloud is the classic cloud-computing model, providing users access to a shared pool of computing resources over the internet. It is known for its scalability and on-demand nature, making it suitable for less-sensitive applications with varying resource needs.

Private Cloud

A private cloud allows organizations to enjoy the benefits of the cloud behind their corporate firewall, providing more control over data and security. It is ideal for companies with specific data residency and compliance requirements.

Hybrid Cloud

Hybrid cloud is the most common deployment, involving a mix of public and private clouds, multiple vendors, and various cloud services. It provides flexibility and customization to meet different business needs.

Final Note

Cloud computing has become the foundation of modern business operations, offering unparalleled scalability, innovation, and cost efficiency. As of 2023, cloud technologies continue to evolve, providing new opportunities and challenges for businesses worldwide.

To harness the full potential of cloud computing, organizations must carefully consider their cloud strategies, security measures, and emerging trends to remain competitive in an ever-changing digital landscape. With expert help from experienced cloud service providers like STL Digital, enterprises leverage the best to be the best.

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