An Executive's Guide to Cloud Computing

Cloud computing has reshaped the way companies large and small acquire, use and sell software. Perhaps more subtly, it changed the computing playing field from large companies that could afford massive data centers to allowing anyone with a credit card to purchase cutting-edge technology. However, it is often taken for granted and not fully understood .

Cloud Computing Technologies and Trends

On a conceptual level, cloud computing is not a new idea. In the early era of computing, many companies employed “time-share” technology, where individuals would have access to a terminal that could submit computing tasks to a large central mainframe computer, each terminal sharing the computing time of that central mainframe.

Cloud computing does a similar trick, where high-powered computers are located elsewhere and shared by many users. The term originated from early architecture diagrams representing large networks like a cloud , and you may have heard someone joke that “this will happen 'in the cloud'” when discussing these networks. Widespread Internet adoption and increasing speeds have allowed almost anyone to connect to a robust network of computing power and share software. Hence, cloud computing has become popular.

In addition to technology, new business models and a robust ecosystem of software companies make cloud computing so attractive. Before the widespread availability of cloud computing, most companies purchased software and hardware from multiple vendors and spent significant amounts installing and maintaining that software. Obviously, the more complex and expensive the software, the higher the cost of acquisition, support staff, and ongoing maintenance.

Cloud computing has changed this dynamic. By moving hardware, software and all maintenance and development services to another entity, small businesses could now access “big business” software at a price that was attractive to both the customer and the supplier. Arguably, smaller companies even gained an advantage. By not having millions of dollars in infrastructure and personnel to support on-premises resources, they could quickly acquire and switch cloud providers as business needs dictated.

Types of Cloud Computing Technologies

There are several types of cloud computing technologies, largely defined by who owns and can access the underlying resources . The best known is the public cloud, where a company like Google or Microsoft owns the hardware and software and provides access to these resources to the general public to develop their own applications. Multiple companies, each called a tenant, can access the underlying resources to create their own applications.

The “big three” cloud providers, Amazon, Google and Microsoft, provide public clouds, and your favorite apps like Gmail, Spotify and Netflix run on these public clouds.

On the other hand, a private cloud is generally dedicated to a single company that may or may not own the underlying infrastructure. An organization can create its own pool of computing resources and build its own private cloud, or pay another company to build and maintain a private cloud.

Hybrids or multiclouds combine some combination of company-owned infrastructure with public or private clouds, creating what appears to be a single environment.

There are several concerns in determining which type of cloud might be right for your organization, with security, scalability, and cost varying to some extent between types. For example, the lower cost of a public cloud can benefit a company testing a new application. On the other hand, a government entity's security requirements may require a private cloud.

For initial forays into cloud computing, the public cloud offers advanced functionality that is easy to extend at competitive prices. For more complex systems, there are experts who can help design the right cloud environment for your needs.

Where to Start: Top Cloud Computing Applications

You're probably already using the cloud, even if you don't know it. Common applications, from Google Docs to Microsoft Outlook, already use cloud computing technologies. Here are some of the main cloud application categories and some examples you can already use today.

Software as a Service (SaaS)

Software as a Service (SaaS) is the now-ubiquitous model of paying a recurring fee for access to a software application delivered or hosted in a public cloud. Microsoft 365, which includes the popular Office suite, is a SaaS offering, as is Adobe Creative Cloud. Many companies are also investigating SaaS models for software products that they can sell to their customers.

Infrastructure as a Service (IaaS)

Infrastructure as a Service (IaaS) allows entities to “rent” hardware and associated infrastructure at someone else’s location. IaaS providers offer everything from individual servers (called “bare metal”) to time on a shared server or web hosting platform.

Platform as a Service (PaaS)

Platform as a Service (PaaS) provides an abstraction layer from physical hardware, allowing entities to purchase computing capacity rather than specific hardware. Amazon Web Services (AWS) is perhaps one of the best-known PaaS offerings and will allow customers to develop applications using a standard set of tools without worrying about the specifics of what type of servers or networks are running the application.

File and data storage

If you've ever used Dropbox, OneDrive, or Google Drive, you're already familiar with cloud files and data storage. These platforms allow users to store and share data without worrying about disk drives, backups, or data centers. File and data storage is often combined with other cloud offerings.

Data analysis

The cost of computing and storage infrastructure associated with storing and analyzing big data can be significant, so cloud computing providers have addressed this challenge by essentially “renting” capacity through cloud computing. Providers like Collibra, Smartsheet, and DemandTools allow customers to “ingest,” store, and analyze large data sets without investing in their own infrastructure. In some cases, these vendors even include industry-specific analytics tools.

Cyber ​​security

As cloud adoption has increased, so have cloud-based cybersecurity providers. Moving elements of your cybersecurity to the cloud allows you to leverage additional expertise and better manage devices that are no longer limited to a physical office. Companies like Palo Alto Networks and Carbonite provide services ranging from detecting unauthorized devices to alerting you when company data is stolen.