What is the Cloud?
Cloud computing means using the internet to access software, store files, and run systems without needing to manage physical hardware yourself. Behind the scenes, the cloud is powered by a distributed network of computers that work together to deliver fast, reliable services. Clients don't know, and don’t need to know where their data or programs are running; they simply log in and start working.
What is Cloud Computing?
Cloud computing is the delivery of computing services – servers, storage, databases, networking, software and also includes access to the Internet (“the cloud”). Companies that offer these computing services are known as cloud providers, and typically charge for cloud computing services based on usage, similar to how people are billed for utilities at home.
Cloud Computing Vs Traditional Hosting
Historically, the term 'hosting' referred to when a physical server was located and managed in a specific remote location - usually a data centre - and connected via the internet. Conversely, cloud computing is characterised by the absence of a specific device or location within the cloud provider's network where the work will be done. These days, services are often described as being hosted 'in the cloud' because cloud providers are operating the IT infrastructure, but the terms are not entirely synonymous.]
Types of Cloud Computing
- IaaS - This is the most basic category of cloud computing services. With IaaS, you rent IT infrastructure – servers, storage, networks, operating systems – from a cloud provider on a pay-as-you-go basis. Globally, Amazon, Microsoft and Google are the primary providers for this kind of service. We partner with Microsoft and other hosting specialists - the specific choice depends on use-case - for public or private cloud services.
- PaaS - Platform as a service (PaaS) refers to cloud computing services that provide an on-demand environment for developing, testing, delivering and managing software applications. PaaS is designed to make it easier for developers to quickly create web or mobile apps without needing to set up or manage the underlying infrastructure of servers, storage, network and databases needed for development. Microsoft Dynamics 365 works in this way, allowing us to rapidly create tailored applications for our clients.
- SaaS - Software as a service (SaaS) is a method for delivering software applications over the internet, on demand, and typically on a subscription basis. With SaaS, cloud providers host and manage the software application and underlying infrastructure, and handle any maintenance, such as software upgrades and security patching. Users connect to the application over the internet, usually within a web browser on their phone, tablet, or PC. We use Microsoft Office 365 to provide email, document management, and collaboration services in this way.
What is Cloud Computing Used For?
You may well be using cloud computing right now, even if you don’t realise it. If you use an online service to send emails, edit documents, watch films or TV, listen to music, play games, or store pictures and other files, cloud computing will be making it all possible.
Cloud computing services are barely a decade old, but already a variety of organisations – from start-ups to global corporations, from government agencies to non-profits – are embracing the technology for all sorts of reasons. These are a few of the things you can do with the cloud:
- Create new apps and services
- Store, back up, and recover data
- Host websites and blogs
- Stream audio and video
- Deliver software applications
The History and Evolution of Cloud Computing
Cloud computing began as an extension of the move towards hosting servers in remote, secure and resilient locations. This shift was driven by a growing reliance on critical systems which involved large upfront investments and in-house management. As the idea gained traction in the 2000’s, providers like AWS, Microsoft Azure, and Google Cloud introduced a more flexible model. They offered computing power without tying it to a specific device or location, and instead delivering it as a complete service.
Today, over 65% of enterprise workloads run in the cloud, driven by its scalability, cost-efficiency, and support for remote work. AWS, Azure, and Google Cloud continue to lead the market.
Despite rapid growth, adoption barriers remain. Security, compliance, and complex legacy infrastructure can slow migration—especially for large or regulated organisations. Still, the benefits are compelling, and the cloud is becoming a strategic foundation for innovation and growth across industries.
However, cloud adoption is not without its challenges. For many enterprises, security and data privacy remain top concerns, especially in regulated industries. Compliance requirements often require tight controls over where data is stored and who can access it. Legacy systems, high workload demands and complex infrastructure dependencies also make full cloud migration difficult for some.
Types of Cloud Computing Models
Public Cloud
Services are delivered over the internet by third-party providers and shared across multiple organisations.
Example: Netflix runs much of its infrastructure on Amazon Web Services (AWS) to stream content globally without owning physical servers.
Private Cloud
Cloud infrastructure is used exclusively by one organisation, either on-premises or hosted by a third party.
Example: Bank of America uses a private cloud developed with IBM, offering tighter control over security and compliance.
Hybrid Cloud
Combines public and private clouds, allowing data and applications to move between them for greater flexibility.
Example: General Electric (GE) uses a hybrid model with Microsoft Azure, blending on-premises systems with cloud services.
Multicloud
Uses services from multiple public cloud providers to avoid vendor lock-in and optimise performance.
Example: Volkswagen Group uses AWS, Azure, and Google Cloud across different departments to match specific needs and capabilities.
Key Benefits of Cloud Computing
Cloud computing represents a shift from the traditional way businesses think about IT resources. Here are some of the most common reasons why organisations are turning to cloud computing services:
- Cost - Cloud computing eliminates the capital expense of buying hardware and software, as well as setting up and running on-site data centres – including racks of servers, the round-the-clock electricity for power and cooling, and the IT experts needed to manage the infrastructure.
- Performance - Most cloud computing services are provided as self service and available on demand, so even vast amounts of computing resources can be provisioned in minutes. This gives businesses flexibility and relieves the pressure of capacity planning.
- Scalability - One of the benefits of cloud computing services include the ability to scale elastically. That means delivering the right amount of IT resources – for example, more or less computing power, storage, bandwidth,exactly when it’s needed.
- Productivity - On-site servers typically require a lot of extensive management. This can include patching, hardware monitoring and capacity planning. Cloud computing also reduces or eliminates the need for many of these tasks, so more time can be spent on achieving more important business goals.
- Security - Leading cloud providers operate global networks, which are regularly upgraded to the latest generation of fast and efficient computing hardware. These data centres offer a level of physical and cyber security out of the reach of most small and medium sized organisations.
- Reliability - Cloud computing simplifies and reduces the cost of data backup, disaster recovery and business continuity easier and less expensive, by mirroring data across multiple redundant sites on the cloud provider’s network. In addition, users can access their applications securely from anywhere with an internet connection.
Are there any disadvantages of cloud computing?
- Dependence on Internet Connectivity: Cloud access relies on stable internet connections with sufficient bandwidth to serve to all users across the organisation. Without it, productivity can suffer. Businesses may need to upgrade to more robust connections or consider backup lines to ensure continuity.
- Security and Privacy Risks: Storing data off-site can raise concerns around data breaches, loss of control, and compliance—particularly in sectors with strict regulatory requirements.
- Limited Customisation: Public cloud solutions may not offer the same level of customisation as in-house systems, which can be a challenge for highly specialised needs. Workloads requiring large data volumes or very fast speeds of access are particularly susceptible
- Potential for Higher Long-Term Costs: While cloud services reduce upfront spend, long-term or poorly managed usage (especially with on-demand pricing) can lead to unexpectedly high costs.
- Vendor Lock-in: Migrating away from a cloud provider can be complex and expensive, especially if a business becomes reliant on proprietary tools or services.
The Future of Cloud Computing: The Impact of AI
Forecasting how technology develops, and the effects it has, is a challenge. Nevertheless, given the current state of play, we think the following:
AI-Driven Innovation
AI is no longer a separate capability—it’s becoming native to the cloud. Cloud providers are embedding AI across their platforms, offering tools for data analysis, automation, coding assistance, cybersecurity, and more. This gives tech companies a fast track to building intelligent products and services without the overhead of developing complex AI models from scratch.
Serverless and Event-Driven Architectures
Developers are moving towards serverless models, where code runs in response to events, automatically scaling without manual infrastructure management. This makes innovation faster and more cost-effective — especially for start-ups and fast-growing digital platforms.
Edge Computing Expansion
To support technologies like autonomous vehicles, IoT, and AR/VR, edge computing is growing. It enables processing to happen closer to the user or device, reducing latency and improving performance for real-time applications.
Quantum and High-Performance Computing in the Cloud
Emerging technologies like quantum computing and high-performance workloads are becoming more accessible via cloud platforms. This levels the playing field, allowing tech firms to experiment and innovate in areas that were previously cost-prohibitive.
AI for Cloud Management
AI is also being used behind the scenes — to optimise cloud infrastructure, predict outages, enhance cybersecurity, and manage energy use. This makes the cloud itself smarter, more efficient, and more resilient.