Cloud Computing Guide

 
What is cloud computing?
What are the advantages of cloud computing?
What are the benefits of cloud computing?
Types of Cloud Computing
The History of Cloud Computing
How does cloud computing work?
Who is Using Cloud Computing?
Cloud Computing and Emerging Technologies
Cloud Service Models Explained: IaaS, PaaS, SaaS
 

What is cloud computing?

Cloud computing is the on-demand delivery of computing services over the Internet via servers, storage, databases, networking, software, and more. It enables faster innovation, offers flexible resources, and provides economies of scale while allowing users to pay only for the services they use. This technology eliminates the need to buy and maintain physical data centres and servers, making it possible to access computing power, storage, and databases as cloud providers need. Cloud computing is available through various deployment models (public, private, hybrid) and service layers (IaaS, PaaS, SaaS), providing users with remote, on-demand access to computing resources and data storage over the Internet.

According to a Dell report, companies that invest in big data, cloud computing, mobility, and security enjoy up to 53% faster revenue growth than their competitors. More than that, they are using this technology to run their organisations more efficiently, serve their customers better, and dramatically increase their overall profit margins.

 
 

How does cloud computing work?

As digital transformation reshapes our world, the demand for data usage has skyrocketed, posing a significant challenge for individuals and organisations to maintain their crucial information, programs, and systems on local computer servers.
 
With cloud computing, you open a browser, log in, and start working. For example, a field sales representative using a cloud-based CRM can access all necessary information from their mobile device. They can update contact notes in real-time, ensuring the data is always fresh and available to others, eliminating the need to wait until they're back at the office. Sales managers can view which deals will likely close and when from their desktop computers, tablets, or phones, whether in their offices or on the move.
 

What are the advantages of cloud computing?

Cloud computing has been around for approximately two decades. Despite the data pointing to the business efficiencies, cost-benefits, and competitive advantages it holds, a large portion of the business community continues to operate without it. According to a study by the International Data Group, 69% of businesses already use cloud technology in one capacity or another, and 18% say they plan to implement cloud-computing solutions at some point. At the same time, Dell reports that companies that invest in big data, cloud, mobility, and security enjoy up to 53% faster revenue growth than their competitors. As this data shows, an increasing number of tech-savvy businesses and industry leaders recognise the many benefits of the cloud-computing trend. More than that, they are using this technology to run their organisations more efficiently, serve their customers better, and dramatically increase their overall profit margins.
 
 

Who is Using Cloud Computing?

Organisations across every industry and size are turning to cloud computing to enhance operations and drive innovation. From small startups to large corporations, the versatility and scalability of cloud services make them a prime resource for managing various business functions. For instance, healthcare providers leverage cloud technology to craft personalised treatment plans, while financial institutions utilise it for real-time fraud detection and prevention. Similarly, this widespread adoption underscores the cloud's role as a fundamental tool for modern business strategies, offering robust solutions that cater to diverse needs and objectives.
 

What are the benefits of cloud computing?

Adopting cloud computing technology has been swift and global, offering significant benefits. Here are some of the most important reasons for adopting it.
 
 

Cost Savings with Cloud Services

If you are worried about the price tag associated with switching to cloud computing, you aren't alone. Twenty percent of organisations are concerned about the initial cost of implementing a cloud-based server. But those attempting to weigh the advantages and disadvantages of using the cloud need to consider more factors than just the initial price; they need to consider ROI.

Once you're on the cloud, easy access to your company's data will save time and money in project startups. And, for those who are worried that they'll end up paying for features that they neither need nor want, most cloud-computing services are pay-as-you-go. This means that if you don't take advantage of what the cloud offers, you won't have to be dropping money on it.

The pay-as-you-go system also applies to the data storage space needed to service your stakeholders and clients. This means that you'll get exactly as much space as you need and not be charged for any space that you don't. Taken together, these factors result in lower costs and higher returns. Half of all CIOs and IT leaders surveyed by Bitglass reported cost savings in 2015 due to using cloud-based applications.

 

Business Flexibility

Your business has only a finite amount of focus to divide between all of its responsibilities. Suppose your current IT solutions are forcing you to commit too much of your attention to computer and data-storage issues. In that case, you aren't going to be able to concentrate on reaching business goals and satisfying customers. On the other hand, by relying on an outside organisation to take care of all IT hosting and infrastructure, you'll have more time to devote to the aspects of your business that directly affect your bottom line.

The cloud offers businesses more flexibility overall versus hosting on a local server. And, if you need extra bandwidth, a cloud-based service can meet that demand instantly rather than undergoing a complex (and expensive) update to your IT infrastructure. This improved freedom and flexibility can make a significant difference to the overall efficiency of your organisation. A 65% majority of respondents to an InformationWeek survey said “the ability to quickly meet business demands”.

 

Enhancing Mobility with Cloud Computing

This technology allows mobile access to corporate data via smartphones and devices, which, considering over 2.6 billion smartphones are used globally today, is a great way to ensure that no one is ever left out of the loop. Staff with busy schedules or who live a long way away from the corporate office can use this feature to keep instantly up to date with clients and co-workers.

Through the cloud, you can offer conveniently accessible information to sales staff who travel, freelance employees, or remote employees, for better work-life balance. Therefore, it's not surprising to see that organisations with employee satisfaction listed as a priority are up to 24% more likely to expand cloud usage.

 

Strategic Value

As we move further into the digital age, it's becoming clearer and clearer that the old adage “knowledge is power” has taken on a more modern and accurate form: “Data is money.” Hidden within the millions of bits of data surrounding your customer transactions and business process are nuggets of invaluable, actionable information waiting to be identified and acted upon. Of course, sifting through that data to find these kernels can be very difficult unless you have access to the right cloud-computing solution.

Many cloud-based storage solutions offer integrated cloud analytics for a bird's-eye view of your data. With your information stored in the cloud, you can easily implement tracking mechanisms and build customised reports to analyse information organisation-wide. You can increase efficiencies and build action plans to meet organisational goals from those insights. For example, the beverage company Sunny Delight increased profits by about $2 million a year and cut $195,000 in staffing costs through cloud-based business insights.

 

Collaboration via the cloud

Collaboration should be a top priority if your business has two or more employees. After all, there is little point in having a team if it cannot work like a team. Team members can view and share information easily and securely across a cloud-based platform. Some cloud-based services even provide collaborative social spaces to connect employees across your organisation, therefore increasing interest and engagement.
 

Cloud Computing provides a competitive edge

While cloud computing is gaining popularity, some still prefer to keep everything local. That's their choice, but doing so places them at a distinct disadvantage when competing with those with the benefits of the cloud at their fingertips. If you implement a cloud-based solution before your competitors, you'll be further along the learning curve when they catch up. A recent Verizon study showed that 77% of businesses feel cloud technology gives them a competitive advantage, and 16% believe it is significant.
 
 

Cloud Computing and Emerging Technologies

This technology's evolving and diverse landscape is highlighted by its adaptability to emerging technologies and ongoing impact across various industries.
 

Edge Computing and Cloud Integration:

Cloud is wider than centralised data centres. It's increasingly being integrated with edge computing, which involves processing data closer to where it's generated, often at the network's edge. This integration facilitates real-time data analysis, reduced latency, and enhanced performance. It suits applications like IoT (Internet of Things), where immediate data processing is critical for real-time decision-making.

Containerisation and Orchestration:

Cloud computing relies heavily on containerisation technologies and container orchestration platforms. Containers package applications and their dependencies in a consistent environment, enabling easy deployment and scaling of applications across different cloud environments. This approach fosters portability and reproducibility in cloud-based deployments.
 

Serverless Computing:

Serverless computing, often called Function-as-a-Service (FaaS), allows developers to run code in response to events without managing server infrastructure. With serverless, you're billed only for the actual compute time used, providing a cost-effective and scalable solution for specific workloads as it automatically scales with demand.

Hybrid and Multi-Cloud Strategies:

Many organisations adopt hybrid and multi-cloud strategies, combining public and private clouds or multiple cloud providers. This approach allows businesses to balance performance, cost, and data residency requirements while reducing vendor lock-in.
 

AI and Machine Learning:

Cloud computing platforms often offer integrated AI and ML services, making it easier for businesses to build and deploy machine learning models, perform data analytics, and extract insights from vast datasets.

Environmental Considerations:

Cloud providers increasingly focus on sustainability and environmental responsibility. They aim to reduce their carbon footprint by transitioning to renewable energy sources and implementing energy-efficient data centre designs.
 

Cloud-Native Development:

Cloud-native development practices involve building applications from the ground up to fully leverage cloud resources. These applications are designed for scalability, resilience, and flexibility, often using microservices architecture and continuous integration/continuous deployment (CI/CD) pipelines.
 

Types of Cloud Computing

Cloud computing encompasses various deployment models with unique characteristics to suit different organisational needs.

Below is an overview of the primary types of cloud computing:

 

Public Cloud

Public Cloud: Platforms offer services and infrastructure hosted off-site and managed by the cloud provider. These resources are available to the public, and multiple tenants typically share them.

Key Benefit: It provides scalable, flexible, and cost-effective solutions with minimal physical infrastructure requirements. It is ideal for businesses needing to deploy applications rapidly.

Private Cloud

Private Cloud: Refers to cloud computing resources used exclusively by one business or organisation. The cloud can be located on the company’s on-site data centre or hosted by third parties.

Key Benefit: It offers enhanced security and control, which is critical for businesses with strict data regulations, sensitive information, or unique requirements not met by the public cloud.

 

Hybrid Cloud

Hybrid Cloud combines public and private clouds, bound together by technology that allows data and applications to be shared between them. This provides businesses with greater flexibility and more data deployment options.

Key Benefit: Enables businesses to keep critical applications and sensitive data in a private cloud while utilising the robust computational resources of a public cloud for less critical data.

Multi-Cloud

Multi-Cloud: This involves using multiple cloud services in a single heterogeneous architecture to reduce reliance on any single vendor, increase flexibility through choice, and mitigate against disasters.

Key Benefit: It reduces vendor lock-in and improves business continuity by spreading assets, redundancies, and risk across several cloud environments.

These cloud types represent the foundational structures in cloud computing, helping organisations leverage various environments according to their specific needs, whether they prioritise cost, control, security, or flexibility.
 

Cloud Service Models Explained: IaaS, PaaS, SaaS

These cloud computing service models offer diverse options, from fine-grained control over infrastructure (IaaS) to simplified application development (PaaS), ready-to-use software solutions (SaaS), and efficient, event-driven application development without infrastructure management (Serverless). Each model serves specific business needs, allowing organisations to select the most suitable option.
 

Infrastructure as a Service (IaaS)

IaaS offers on-demand infrastructure resources, including computing power, storage, networking, and virtualisation. The service provider owns and manages the underlying infrastructure, while customers are responsible for software components like operating systems, middleware, data, and applications.

Key Benefit: IaaS provides high flexibility and control over IT resources, similar to traditional setups, allowing customisation and scalability.

Platform as a Service (PaaS)

PaaS supplies an environment for developing, testing, delivering, and managing software applications. It eliminates the need for organisations to manage underlying infrastructure (hardware and operating systems) and focuses on application deployment and management. PaaS includes middleware, development tools, and cloud databases.

Key Benefit: PaaS streamlines application development by removing concerns about resource procurement, capacity planning, and infrastructure maintenance, enabling developers to concentrate on application development.

 

Software as a Service (SaaS)

SaaS delivers complete software products managed and operated by the service provider. Users can access and use these applications over the internet, typically on a subscription basis. SaaS is often associated with end-user applications and relieves users from concerns about software maintenance or infrastructure management.

Key Benefit: SaaS offers convenience, as users can use the software without the need to manage maintenance, updates, or underlying infrastructure.

Serverless Computing

Serverless computing, or Function as a Service (FaaS), allows developers to create applications as event-triggered functions without managing or scaling infrastructure. The cloud provider handles infrastructure setup, capacity planning, and server management. Serverless architectures are highly scalable and activate resources only when specific functions or triggers occur.

Key Benefit: Serverless computing offers efficient, event-triggered application development without the burden of server management. It's particularly suitable for applications that require on-demand scalability.

 
 

The History of Cloud Computing

The Internet's roots date back to the 1960s, but it wasn't until the early 1990s that it became relevant to businesses. The World Wide Web was born in 1991, and in 1993, a web browser called Mosaic was released that allowed users to view web pages that included graphics as well as text. This heralded the first company websites—and not surprisingly, most of these belonged to companies involved in computing and technology.

As Internet connections became faster and more reliable, a new type of company called an Application Service Provider (ASP) appeared. ASPs took existing business applications and ran them for their customers. The ASP would buy the computing hardware and keep the application running, and the customer would pay a monthly fee to access it over the Internet.

 
 

Social CRM in the cloud

If you're a Facebook or Twitter user you've probably come to expect relevant information pushed to you in real time; business applications like Sales Cloud are heading in that direction as well.

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