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Cloud Computing Services - How it Works and Its Benefits

March 04 2021
Author: v2softadmin
How Cloud Computing Works and It's Benefits

To understand how cloud computing works, before that let’s go to know some facts and figures about cloud computing.

“Cloud is about how you do your computing, not where you do computing.”-Paul Maritz, CEO of VM Ware.

The cloud computing market was USD 321 billion in 2019 and it is expected to be USD 1000 billion by 2026. The cloud computing market is expected to grow at 18% compound growth rate.

There is so much of talk about the cloud, with many organizations already adopting cloud and many waiting to join the bandwagon.


What is Cloud Computing with Example?

Cloud computing entails outsourcing software, data storage, and data processing to a third party or to a cloud host. Users can access the Apps and files through using any device through the internet. Data and programs that are hosted by the third party are available on a secure data center of a global data network.

Cloud computing facilitates sharing and collaboration of data, allowing secure mobile access of data through any device at anytime from anywhere.

Cloud computing is not just limited to desktops and PCs, mobile clouds have also emerged lately. The mobile cloud can be understood as internet-based data, apps, and related services accessed through smartphones, laptops, and other portable devices.


How does Cloud Computing Work?

To get a clear picture of the cloud system, you can visualize it as comprising of two parts:

Front End: This is where the user/client interacts with the cloud. The front end usually consists of the user’s computer and the App necessary for accessing the cloud computing system.

Back End: This is the “Cloud” section. It consists of computers, servers, and data storage systems. The back end has dedicated servers for performing specific programs.

The front end and back end interact with each other via the internet.


How Cloud Servers and Cloud Storage Facilitate Cloud Computing:

Cloud Servers

Cloud computing is facilitated by cloud servers which are virtual servers in a cloud computing environment. These servers are built and hosted in a cloud computing platform and are capable of running and functioning as independent units.

The concept of cloud hosting entails spreading the resources required for maintaining your website across multiple servers so that they can be accessed according to the needs of the user.

Since each server carries out a separate function, in case of a malfunction by one server, other servers provide a back-up. This reduces the chances of downtimes. Besides, it helps you manage peak loads without being concerned about bandwidth issues.

Cloud Storage

Cloud Storage is when a cloud service provider maintains, manages, and backs up data remotely. This data can be accessed by users through the internet.


Types of Cloud Storage:

Private Cloud:

It is meant for internal use by a single organization.

Public Cloud:

In this case, cloud services are delivered across the internet.

Hybrid Cloud:

This is when an organization uses both public and private cloud.

The average business runs 38% of workloads in public and 41% in private clouds. (Source: Right Scale)

Cloud storage providers provide coverage to meet unique recovery and budget requirements while allowing data to be accessed anytime, anywhere. The cloud storage is equipped to enable disaster recovery.

Irrespective of the cloud host, the organization using cloud services needs to have effective cloud management so as to control over these cloud computing environments. This will enable users to access the public or private cloud, review cloud computing instances or create new ones. Besides, it will also enable adjustment of resource allocation.

Cloud management also empowers workflow automation and ongoing analysis of cloud computing workloads and user experience.

A study by International Data Group reveals that 69% of businesses are already using Cloud solutions and 18% are planning to implement cloud technology in the near future.

If you are debating if you should migrate to the cloud, it is a good idea to weigh the pros and cons prior to taking a decision.


Cloud Computing Services

Cloud computing is a comprehensive term that refers to a collection of cloud computing services that offer businesses cost-effective solutions to increase their IT capacity and functionality as the business who is using has not to pay for maintenance and server but only required to pay for what using it, and the maintenance and other costs incur to maintain is manage by the businesses who is providing the service.

Businesses make the decision to choose where, when, and how they use cloud computing to ensure reliable and efficient IT solutions depending upon their specific requirements.

In this guide, we will explore three main types of cloud computing services including main deployment models that can be hosted with these environments.

There is three foremost service of cloud computing – Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). There is a clear difference between all three services depending on their functionality in terms of storage and resource pooling, but they can also interact with each other to form one comprehensive model of cloud computing.


What is Infrastructure as a Service (IaaS)

Infrastructure as a Service (IaaS) is one of the most important cloud computing services as it offers virtual storage capacity, network, virtual server, connections, operating systems, and data storage devices. It requires managing all without purchasing and installing the hardware in office themselves. This cloud service is beneficial to both the business providing the infrastructure and the one using it. It allows for flexibility, reliability, and scalability that removes the need for hardware in the office. The IaaS service is ideal for small to mid-size businesses looking for cost-effective IT solutions to support business growth. IaaS service is the benefit to both as it is a fully outsourced service and the user must pay for the storage space used for and is not responsible for maintenance and other charges as it is taken care of by the business who is outsourcing the service and is available as a public, private, and hybrid infrastructure.


What is Platform as a Service (PaaS)

Platform as a service (PaaS) is a type of cloud computing service that provides a platform where customers develop, run, and manage applications without the complexity of building and maintaining the infrastructure typically associated with developing and launching an app. This is where cloud computing providers deploy the infrastructure and software framework, but businesses can develop and run their applications. It is quick and easy to create web applications via PaaS, the service is more robust and adaptable enough to support them. The solution is ideal and scalable for businesses where many developers work on a single project. Besides, PaaS allows a lot of scalability by design because it is based on cloud computing as defined earlier in the study. If you want a lean operations staff, a PaaS can be useful if your app will capitulate. The most negative of using a PaaS Cloud provider is that these services may implement some restrictions or trade-offs that will not work with your product under any circumstances.


What is Software as a Service (SaaS)

Unlike IaaS, where the user pays for the storage space used over the internet, SaaS cloud computing service involves deployment of software over the internet to various businesses who pay via subscription or a pay-per-use model. SaaS allows the cloud to be leveraged for software architecture that reduces the burden of maintenance, upkeep, services, and operations by having the application run on computers belonging to the vendor. It is a valuable tool for CRM and applications that need web or mobile access – such as mobile sales management software, Gmail, and Salesforce. SaaS is managed from a central location, so businesses do not have to worry about maintaining it themselves and is ideal for short-term projects.


Why Cloud Computing with Example?

To understand why cloud computing, let's understand with an example. A young entrepreneur decided to set up an online business. So, the person sets up a server on his own computer and takes all the necessary steps required to set it up successfully. Over time, traffic picks up and now his system is unable to take the increased load.

Now, the entrepreneur purchased server configuration and hardware to set it up. All was good till the server load reaches its maximum capacity and again the server issue is a bottleneck to traffic. What can he do now? He is forced to buy another server unit, but the increase of server units requires more space, a cooling device so it can run in a hot environment as well, and a support & maintenance team. He has also to focus on complying with the latest server protocols keeping on top of the fastest server settings and making sure none of his server’s malfunction! For this, it requires a support team who looks after that none of server malfunction.

At this point, one cloud computing service provider reaches to him and asks to migrate all its data on their cloud server platform for a certain fee based on the usage of space over cloud and pay via monthly subscription or on other terms. This will help entrepreneurs to get rid of the server maintenance cost, space, employee cost, service cost, etc and they can focus on their main business.


Advantages of Using Cloud Infrastructure

In any IT environment, a cloud is strictly considered an upgrade over traditional options. Cloud storage provides the following massive advantages:

  • Cost – Eliminated capital expenses of maintaining and running on-site data centers, cooling, power, Data center management experts, etc.
  • Speed – Cloud providers are usually huge and well-established companies. As such, server speeds are guaranteed and are usually much faster than any on-site solution.
  • Global Scale – No matter where your business takes you, cloud services have you covered! Optimized resource allocation based on your usage allows for perfect movement across geographic locations.
  • Productivity – Time saved on IT services for the on-site upkeep of servers can be used by the company in more productive tasks. Not just this, but IT teams are not needed to reduce hiring costs!
  • Performance – The largest cloud services often leverage worldwide networks of very secure data centers. They are kept updated to tackle the latest IT security threats and maintained by the best cloud architects. They have the luxury of economies of scale as well to deliver unmatched performance.
  • Security – With stringent policies, strict protocols and global teams working on the security of the cloud, it is one of the safest places you can keep your data!


Cloud Service Providers

Here are some of the popular cloud service providers:

  • Alibaba Cloud
  • Amazon Web Services (AWS)
  • Azure (Microsoft Cloud
  • Dell Cloud
  • Digital Ocean
  • Google Cloud Platform
  • IBM Cloud
  • Kamatera
  • Oracle Cloud
  • Rackspace
  • Salesforce
  • SAP
  • Verizon Cloud
  • VMware


Benefits of Cloud Computing:

1. Cost Effective

Many organizations are holding back the idea of migrating to the cloud, mainly because they think it is expensive. You need to evaluate the ROI instead of the cost of the services. Some businesses are concerned that they will be paying for features that they don't use. However, cloud offers pay as you go facility so that you only pay for what you use.

2. Scalability

When you use Cloud services, you can easily scale your business as there is no limit to the storage provided.

3. Mobility

Cloud facilitates accessing data on mobiles. With 2.6 billion smartphone users globally, you can rest assured that each of your team members can easily access the data irrespective of his/her location.

4. Better Collaboration

Since various entities associated with your business can access data from anywhere at any time, collaboration becomes easy.

5. Data Insights

Many Cloud-based platforms offer integrated cloud analytics to access relevant data easily.

Although Cloud computing offers numerous benefits to an organization, there are certain challenges it has.


Challenges of Cloud Computing:

1. Cost

Cloud computing, as such, is not expensive but expenses play a role when a platform needs to be tuned according to the needs of an organization. Besides, transferring data in case of short-term projects can also prove to be expensive.

2. Downtime

Downtime is an inherent shortcoming of cloud computing. No cloud provider can promise services that will be devoid of downtimes.

Besides when a company is thinking of migrating to the cloud, they need to ensure that they have good internet connectivity otherwise they will face problems with the cloud.

3. Security

One of the major shortcomings of cloud computing is the security of data. As per a survey by 2018 Crowd Research Partners, 67% of security professionals are concerned about data loss and leakage, 61% about data privacy, and 53% about breaches of confidentiality.

Businesses need to ensure the security of their data by encrypting confidential data and using passwords to secure their data wherever possible.

4. Vendor Lock-in

Currently, some of the major vendors in public Cloud hosting are Amazon Web Services, Microsoft Azure, Google Cloud, and IBM cloud. This creates a spectre of vendor lock-in.

After weighing the pros and cons, if you have decided to migrate to the cloud, you need to choose a reliable cloud service provider.


What is Cloud Storage?

Cloud storage is a cloud computing model that stores data on the Internet through a cloud computing provider who manages and operates data storage as a service. It’s delivered on-demand with just-in-time capacity and costs and eliminates buying and managing your own data storage infrastructure. This gives you agility, global scale, and durability, with “anytime, anywhere” data access.


How Does Cloud Storage Work?

Cloud storage is purchased from a third-party cloud vendor who owns and operates data storage capacity and delivers it over the Internet in a pay-as-you-go model. These cloud storage vendors manage capacity, security, and durability to make data accessible to your applications all around the world.

Applications access cloud storage through traditional storage protocols or directly via an API. Many vendors offer complementary services designed to help collect, manage, secure and analyze data at a massive scale.


Benefits of Cloud Storage

Storing data in the cloud lets IT departments transform three areas:

  1. Total Cost of Ownership. With cloud storage, there is no hardware to purchase, storage to provision, or capital being used for "someday" scenarios. You can add or remove capacity on demand, quickly change performance and retention characteristics, and only pay for storage that you actually use. Less frequently accessed data can even be automatically moved to lower cost tiers in accordance with auditable rules, driving economies of scale.
  2. Time to Deployment. When development teams are ready to execute, infrastructure should never slow them down. Cloud storage allows IT to quickly deliver the exact amount of storage needed, right when it's needed. This allows IT to focus on solving complex application problems instead of having to manage storage systems.
  3. Information Management. Centralizing storage in the cloud creates a tremendous leverage point for new use cases. By using cloud storage lifecycle management policies, you can perform powerful information management tasks including automated tiering or locking down data in support of compliance requirements.


Cloud Storage is a way of storing data online instead of your local computer. It requires an internet connection to upload, modify, and share documents, presentations, spreadsheets, images, audio, video, etc. with others. Online storage service providers do not store any data on the hard disk of your PC. Cloud storage tools help you to access your data from any device.

  • Limit of free and paid data storage space
  • Integration of thousands of apps
  • File synchronization
  • Upload or download file size


Cloud Storage service is mainly categorized into two – Free vs Paid. The major advantage of paid cloud storage against the free cloud storage is:


Free Cloud Storage

Some of the free cloud storage service providers are:

  • Google Drive
  • pCloud
  • Microsoft One Drive
  • Work Drive
  • Mega
  • OneDrive
  • Amazon Drive
  • Dropbox


Paid Cloud Storage

Some of paid cloud storage service providers are:

  • IDrive Cloud Storage
  • Zoolz Cloud Storage
  • Degoo Cloud Storage

After selecting the cloud service provider and the type of storage, you can migrate easily to cloud with the help of Cloud connect. Cloud connect from internet solutions offers a single, secure link to connect to various public cloud platforms and cloud service providers.


Looking Ahead

Cloud offers many facilities to businesses. Besides, outsourcing to the cloud helps a business save its time, efforts, and money which it can channelize for the growth of the business. Cloud services have become popular across various sectors globally. Things definitely look bright for the Cloud - Cloud adoption Statistics reveal that by 2020 a staggering 83% of the company workload will be stored in the cloud. (Source: Logic Monitor/Forbes).

Service providers like V2soft, Inc., have the expertise to help with your migration to the Cloud.  From analyzing your needs to setting up your instance, V2Soft has solutions to help any size company with their requirements. You can find out more at Cloud Service technology.