TL;DR
Cloud computing lets users access servers, storage, and software entirely over the internet — no special hardware or physical proximity required. Businesses can choose from four architectural models (private, public, hybrid, multicloud) and four service types (Function as a Service (FaaS), Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS)) to match their needs. While the cloud offers real advantages in accessibility and flexibility, organizations must also weigh risks around reliability, security, and compliance.
What is the cloud?
An internet cloud is made up of servers that users access via the internet. A cloud-based resource requires no special software installed on a computer. It also needs no physical proximity to servers or resources. Anyone with the right permissions can hop online and get started.
Think of the cloud as a method rather than an object. Cloud computing involves removing location and/or software demands from users. Instead, a reliable internet connection and proper authentication allow for full access.
A Google executive referred to his company's services by saying they were "in a cloud somewhere" in 2006. His point involved location. Users didn't need to sit in a building with Google's servers down the hall. Instead, those users could be anywhere in the world, and the services would follow them.
It was a new concept back then, but it's not new now.
You've probably used the cloud before. Almost half of the world's email market share belongs to Gmail. This cloud-based program allows you to get your mail from your computer, tablet, or phone. Log in anywhere, even across the world, and your data will be waiting for you.
Companies use the cloud for:
- Backup. Some organizations set up their resources so sensitive information sits on the company's onsite server. But another version sits in the cloud, just in case something goes wrong on the ground.
- Sharing. A user uploads something (like a photo) to the cloud. Another user far away (like a family member) can see it and download it.
- Storage. A user uploads all vacation photos from 2019 to the cloud for social media posts years later.
In most cases, users access the cloud via a web browser or an app. When they log in, they're connected to many servers, all humming with information. Those servers can accept new users easily with few overhead costs. They also come with built-in redundancy, so nothing is lost.
How do cloud products work?
It's not easy to answer the question, "What is the cloud?" Every vendor has a unique product, and clients demand flexibility that explodes definitions. But digging into how cloud products work and how clouds are organized may help.
What are the four types of cloud architecture?
Four types of cloud architectures exist:
- Private: The server holds information that's specific to you or your company. You don't share server space with anyone else.
- Public: The server holds information from many sources.
- Hybrid: The cloud company develops a custom solution that includes both private and public clouds. For enterprise companies, this can be an intriguing option, as they have very specific needs.
- Multicloud: Several servers in different locations hold information your users can access.
What are the main cloud service models?
Companies use these architectures to build products. Four main types of products are available:
- Function as a service (FaaS): A company runs an application on the cloud. Charges accrue only when specific actions are completed. The term "serverless computing" also describes this model.
- Infrastructure as a service (IaaS): A company builds an application on the cloud by buying or renting both servers and storage space.
- Platform as a service (PaaS): A company builds an application on the cloud, and they purchase everything from the cloud vendor. They don't need to buy infrastructure, operating systems, or other tools.
- Software as a Service (SaaS): Applications are hosted on the cloud, and users access them via the internet or an app.
Companies you know and use every day, such as Slack, Salesforce, Canva, Mailchimp, OpenStack, and Instagram, all use these models to serve their customers.
What are the advantages and disadvantages of cloud computing?
The cloud model is popular, and plenty of large companies are eagerly embracing the technology. Should you do the same?
What are the benefits of cloud computing?
| Advantages | Disadvantages |
|---|---|
| Accessibility. Data is stored within the cloud, not on a server within an office building. You can start a document at work and make edits from your home computer that evening. | Reliability. About 19 million Americans don't have high-speed internet access. They may experience hitches and lags when using cloud services. If their service goes down, they can't work at all. |
| Flexibility. Companies don't need to add servers when business is booming. They also don't need to remove hardware when the market dips. Vendors handle the ebb and flow. | Security. Companies don't have full control over cloud data. A hacker who gains entry could see (and steal) anything. |
| Being platform agnostic. In 2020, more than 40 percent of American workers logged in from home, not the office. Without cloud computing, those people needed a VPN or plenty of software. With the cloud, they needed only to authenticate, and then they could see the appropriate resources. | Compliance. Companies in heavily legislated markets (like health care) must ensure their partners will protect their data. |
Want a deeper dive? Learn more about the benefits of moving to the cloud and how Okta can help.
Frequently asked questions
What exactly is cloud computing, and how is it different from traditional computing?
Cloud computing removes the need for users to be physically near servers or install special software. Instead, a reliable internet connection and proper authentication grant access to data and applications hosted on remote servers — unlike traditional computing, which ties resources to a specific machine or location.
What are the four types of cloud architecture?
The four main cloud architectures are private (dedicated to one organization), public (shared across many users), hybrid (a custom mix of private and public), and multicloud (data spread across multiple servers in different locations).
What is the difference between IaaS, PaaS, SaaS, and FaaS?
These are four cloud service models: Infrastructure as a Service (IaaS) involves renting servers and storage; Platform as a Service (PaaS) provides a full development environment from the vendor; Software as a Service (SaaS) delivers applications over the internet; and Function as a Service (FaaS), also called serverless computing, charges only when specific actions are triggered.
What are the biggest security risks of using the cloud?
Because companies do not have full control over cloud-hosted data, a security breach could expose sensitive information. Organizations in regulated industries — such as healthcare — must also verify that their cloud partners meet compliance requirements for data protection.
Is cloud computing reliable for all users?
Not universally. Approximately 19 million Americans lack high-speed internet access, which can cause performance issues or complete outages when using cloud services. Reliability is directly tied to the quality of a user's internet connection.
What are the main business benefits of moving to the cloud?
Key benefits include accessibility (work from any device or location), flexibility (vendors scale capacity up or down as business needs change), and being platform agnostic (employees only need to authenticate, not install software or use a VPN, to access company resources).
References
Where Did 'Cloud' Come From? (May 2012). Computerworld.
50 Gmail Statistics to Show How Big It Is in 2020. (March 2021). Tech Jury.
Have Private Clouds Finally Found Their Place in the Enterprise? (February 2019). Forbes.
Stanford Research Provides a Snapshot of a New Working-From-Home Economy. (June 2020). Stanford.
Eighth Broadband Progress Report. Federal Communications Commission.
