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Technology

What is Cloud?

Last updated: January 15, 2025

On this page

TL;DRExampleExplanationWhy It MattersRelated Terms

TL;DR

The cloud means using servers and software over the internet instead of installing them on your own computers.

Example

Cloud vs. traditional:

Traditional (on-premise):

  • Buy servers, install in your office
  • Pay for hardware, electricity, IT staff
  • You maintain and update everything
  • Data stored locally

Cloud:

  • Rent computing power from providers
  • Pay monthly based on usage
  • Provider handles maintenance
  • Access from anywhere with internet

Cloud services you probably use:

  • Google Drive, Dropbox (file storage)
  • Gmail, Office 365 (email)
  • Slack, Teams (communication)
  • Salesforce, HubSpot (business apps)
  • Netflix, Spotify (entertainment)

If you access it through a browser without installing anything, it's probably cloud-based.

Explanation

Types of Cloud Services

IaaS (Infrastructure as a Service): Rent raw computing power, storage, networking. Examples: AWS, Azure, Google Cloud For: Building custom applications

PaaS (Platform as a Service): Development platform without managing infrastructure. Examples: Heroku, Vercel, Railway For: Developers deploying applications

SaaS (Software as a Service): Ready-to-use applications in the browser. Examples: Salesforce, Slack, Shopify For: Business users

Cloud Deployment Models

Public cloud: Shared infrastructure (most common) Private cloud: Dedicated to one organization Hybrid cloud: Mix of public and private

Why It Matters

For Business Owners

Cloud reduces upfront costs. No need to buy expensive servers. Pay monthly and scale up or down as needed.

Cloud enables remote work. Employees can access systems from anywhere. Essential for modern distributed teams.

Cloud providers handle security and updates. Major providers invest billions in security. Usually more secure than self-hosted.

Cloud scales instantly. Need more capacity for a busy season? Scale up with a click. Scale down when it's over.

Cloud Concerns

Data location: Know where your data is stored (important for GDPR) Vendor lock-in: Switching providers can be difficult Internet dependency: No internet = no access Ongoing costs: Monthly fees add up over years

Related Terms

SaaS

SaaS (Software as a Service) is software you access through the internet and pay for monthly, instead of installing it on your computer.

API

An API (Application Programming Interface) is a way for different software programs to talk to each other and share data.

Database

A database is an organized collection of data that software can quickly search, filter, and update.

Hosting

Hosting is renting space on a server to store your website files and make them accessible on the internet 24/7.

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