Cloud Computing

What Is Cloud Computing and How Does It Work? A Beginner’s Guide

What Is Cloud Computing and How Does It Work? A Beginner’s Guide


Cloud computing is a virtual or remote technology that allows users to create, configure, modify, and customize their data through an internet connection. Cloud in cloud computing refers to networks. Through this technology, the various remote servers store, manage, and access data through the Internet instead of local drives.

90% of the big enterprises have adopted cloud infrastructure, making it an integral and essential element of every computer service. You can use cloud computing for personal and professional purposes to create storage, take backups, and even recover data. Cloud computing can also be used to develop new services and applications.

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Understanding the Basics of Cloud Computing

To understand what cloud computing is, it is a good idea to know how it came into existence. Before cloud computing began, it was all about server/client computing, centralized storage where all software applications, data, and controls were stored.

It was tedious and time-consuming for anyone to perform a task on the server or client computer. It required them to connect to the server and gain access every time to finish their job. Post client/server computing came distributed computing, where all computers were networked in one place. 

It was 1961 when John MacCharty suggested the idea during his speech at MIT, and it took a few more years for the technology to fully come into play.

Benefits of Cloud Computing

A business can take advantage of the numerous benefits of cloud computing. Here are a few that can convince anyone to move over to cloud computing:

  1. Cost-Effectiveness

Although there is an initial cost involved in installing and implementing the cloud strategy, it is also true that organizations can eventually save a lot of money over some time. They don’t have to worry about maintaining their hardware drives or caring for their local data centers.

According to a report, 39% of businesses have achieved their cost-saving goal after moving to cloud computing. Moreover, with the option of pay-as-you-go, companies can try it before completely shifting their business to the cloud.

  1. Scalability

Based on the needs of your business, you can easily scale up or reduce your cloud services. Whether you see a surge in your business volume or reduce resources for a shorter period, the cloud allows you to adjust the resources accordingly.

  1. Flexibility

With the cloud offering companies the option to access their data from anywhere, it also allows their users to choose where they want to work. Now, your people won’t have to rely on local servers for their jobs anymore and can take care of a business requirement instantly.

Key Components of Cloud Computing

Three types of cloud computing options, each representing a unique part of the cloud computing world, are available:

  1. Infrastructure as a Service (IaaS)

IaaS comprises the fundamental components of cloud computing and often gives users access to networking capabilities, computers (virtual or on dedicated hardware), and disk space. 

IaaS is equivalent to the IT structure that many IT departments and developers are familiar with, as it offers the most flexibility and management control over your IT resources. One of the examples of cloud computing through IaaS is Amazon web services.

  1. Platform as a Service (PaaS)

In this type, the cloud provides host development tools, and users can access these over the Internet using web portals, APIs, and gateway software. PaaS is used to create all types of software; some common examples are AWS Elastic Beanstalk, Salesforce’s Lightning Platform, and Google App Engine.

  1. Software as a Service (SaaS)

SaaS is a form of distributing programs via the Internet; these programs are referred to as web services. You can use a PC or mobile device with internet connectivity to access SaaS applications and services from anywhere. Microsoft 365’s email services are a typical example of a SaaS application.

How Does Cloud Computing Work?

Here are a few things required for cloud computing to work:

  1. Data Centers and Servers

The Cloud providers operate in large data centers with powerful servers and hardware. These data centers are generally located worldwide to ensure redundancy.

  1. Virtualization

An essential cloud infrastructure isolates computing power and data storage from the hardware. It enables customers to use a graphical user interface (GUI) on their hardware to communicate with a cloud infrastructure.

  1. Networking

Users can receive the cloud resources they require over the internet by networking. Physical hardware, including switches, wiring, routers, load balancers, and virtual networks built on top of real resources, is used for it. Users can then access cloud apps and services remotely through the internet. 

The Role of the Internet in Cloud Computing

The Internet makes the operation of cloud computing possible, which is essential and crucial to this process. Here is the key role of the Internet in cloud computing:

  1. Data Transfer and Accessibility

The Internet helps facilitate seamless and efficient data transfer between users and cloud service providers. Users can upload their data and download it anytime and anywhere. Through internet connectivity, users can access data from anywhere remotely without connecting to any server.

  1. Security Considerations

Data transfer between clients and cloud servers is secured to a large extent by internet security protocols like SSL/TLS encryption and VPNs. Cloud providers implement strong security precautions, and the Internet guarantees the secure movement of critical data.

Cloud Service Models and Their Functionalities

Below are the three types of cloud service models that users can opt for. Let’s look at these in detail:

  1. Public Clouds

A public cloud is a computing model where infrastructure and on-demand computing services are maintained by a third-party provider and shared among numerous enterprises via the open Internet.  

  1. Private Clouds

A private cloud is a computing environment reserved for a single company or business. In a private cloud, one organization isolates and controls all resources. Only selected users access these cloud services.

  1. Hybrid Clouds

In a hybrid cloud, applications are executed in a mixed computing environment that combines computing, storage, and services from private and public clouds, as well as on-premises data centers and “edge” locations.

Components of Cloud Computing

Cloud computing is a complex system that involves various components working together to deliver computing services and resources over the Internet. These components can be categorized as follows:

  1. Virtual Machines and Containers

Virtual machines and containers enable your apps to run independently of your IT infrastructure. An application’s code, libraries, and other dependencies are all contained in a container, which is a software code bundle. Your applications become portable with containerization, allowing the same code to operate on any device.

A virtual machine is a representation of a real machine online. You can run numerous virtual machines on the same host operating system, each running its unique operating system.

  1. Cloud Storage Solutions

Over the Internet, cloud storage offers scalable and reliable data storage services. Cloud storage systems allow Users to store and retrieve data, files, and objects. Database services, object storage, and file storage are a few different types of storage.

  1. Networking in the Cloud

The tools and technologies that make it possible for different cloud components to communicate with one another are included in cloud networking. It comprises virtual networks, load balancers, firewalls, and content delivery networks (CDNs) to enable effective data transfer and communication.

  1. Load Balancing and CDN (Content Delivery Networks)

Load balancing and Content Delivery Networks (CDNs) are essential components in cloud computing and web infrastructure, working together to improve the performance, availability, and scalability of web services and content delivery.

Popular Cloud Service Providers

There are different cloud service providers in the market offering cloud computing services to users, and below are the top three service providers:






26 regions and 84 availability zones

60 regions and across 116 availability zones

34 regions and 103 available zones

Common Services

Compute, storage, and database

Hybrid cloud experience, developer productivity, AI, security, and compliance

Build, test, and deploy applications


11 years

5 years

6 years


60-second minimum with per-second pricing

Per minute pricing

Per minute pricing


EC2 provides all computing services

Can create virtual machines

Part of GCP 

Common Use Cases of Cloud Computing

With the help of cloud computing, IT infrastructures may be swiftly built and scaled as needed. Here are a few typical uses for cloud computing.

  1. Cloud Storage and Backup

Cloud-based storage increasingly replaces local hard drives as the new industry standard in IT solutions. Large amounts of data can be stored in the cloud since it offers infinite storage.  

Cloud computing is currently the foundation of the majority of backup systems. The cloud eliminates the need for repetitive manual backup tasks necessary for any system.    

  1. Cloud-Based Software Applications

Software as a Service (SaaS) applications, also called cloud-based software applications, are hosted and supplied over the internet by cloud computing infrastructure. Users don’t need to maintain hardware and software or perform local installations of these applications; instead, they can access them via web browsers.

  1. Cloud-Based Development and Testing Environments

In contrast to conventional servers, the cloud enables you to develop, deploy, and terminate environments whenever you want. The time it takes to furnish a new environment is not that long. You can rapidly set up a staging environment to test your project with only a few clicks.

The Future of Cloud Computing

Cloud computing is the new way of working and operating, and increasingly, businesses are looking forward to shifting their businesses to this model. A report estimates that the cloud computing market will reach $1.614 trillion by 2030.  

In addition, cutting-edge technologies like AI and ML are increasingly being incorporated into cloud computing services, giving companies access to sophisticated capabilities. AI/ML services from cloud providers include natural language processing, picture recognition, predictive analytics, and pre-trained models. 

Here are some of the predictions about the future of cloud computing:

  • With data ruling the world, it is expected that cloud computing may offer more storage space at a lower price.

  • With the support of IoT, the internet’s quality can be enhanced, thus offering better cloud computing services.

  • A continuous increase in hybrid and multi-cloud strategies can be seen with increased demand.


Cloud computing has changed how users access, deliver, and manage their data remotely. Understanding what cloud computing is will help people who are interested in building a career in this wonderful field.  

Moving to a cloud-based platform has many benefits, including being flexible, scalable anytime, and cost-efficient. Moreover, with the different types of cloud computing options available, it is becoming easier for companies and individuals to choose the one that best fits their requirements.

You can contact us to advance your cloud computing career and opt for different cloud computing courses. You can quickly enhance your knowledge and skills with specialized courses and get a job in your preferred sector.


How does cloud computing work for business?

Cloud computing can help businesses build, test, and deploy their applications while storing their data on the cloud platform. It will further help companies to not worry about taking back-ups and easily be able to recover data anytime they want.

What are the main advantages of using cloud computing?

Among the many advantages of cloud computing, the main advantage is the flexibility of accessing the data remotely. Storing data in the cloud means accessing it much faster than on normal client or server networks. Moreover, it is cost-effective as it eliminates the need to use hardware or local drives for storing data.

Is cloud computing more cost-effective than traditional systems?

Cloud computing provides a more affordable solution as compared to traditional systems. It is a pay-as-you-go model where companies or individuals can pay only when they require the services. Moreover, it also helps them reduce their hardware and software installation costs since everything gets stored on the cloud.

What are the top cloud service providers on the market?

Some of the top cloud computing service providers are Amazon Web Services, Microsoft Azure, Google Cloud Platform, Alibaba Cloud, and Oracle Cloud, to name a few.