What is Cloud Computing? Types, Services, and Importance

  • Post category:blog
  • Post last modified:29 June 2023
  • Reading time:17 mins read

Year after year, cloud computing is the reason or enabler of innovations that, in most cases, revolutionize the corporate market.

This transformative technology grew out of one solution for storing and managing files, but has evolved to become a broad ground for the creation of others.

It can be considered the main pillar for a digital transformation, as it brought many innovations to the IT sector and several benefits to the business universe.

With that in mind, we have prepared this content, a complete guide on the technology that has changed the corporate world and enabled many of the innovations that each company uses in its day-to-day. 

Come with us!

What is cloud computing?

It is a technology based on the culture of services and whose resources can be accessed from the company’s internet or intranet connection.

According to Gartner , end-user spending on public cloud worldwide is expected to reach nearly $600 billion by 2023.

Why is cloud usage still on the rise? Simple!

In the cloud, you can store data, files, programs and systems in a secure, digitized manner with a low rate of errors or data loss .

Thus, you do not have to deal with the costs, maintenance and other concerns of maintaining a physical infrastructure of hardware and software for the task.

How did cloud computing come about?

One of the first mentions of the term cloud computing comes from a business plan (still available) developed by Compaq professionals , who believed that it would be like the future of computing.

Academically , the first record dates from a year later, 1997, in a lecture given by Ramnath Chellappa , professor of Information Systems.

Conceptually , we have: 

  • Joseph Clark: created the ARPANET , a communication sharing network, which served as the basis for cloud computing.
  • John McCarthy: in the 60s, he pointed to the possibility of a shared computing system (called “Utility Computing ”).

Commercially, there are big names in the market, such as Google and the telecommunications operator AT&T , but the first launch of a cloud computing product was that of Amazon , in 2006.

What is the purpose of cloud computing?

The main objective of the cloud is to make the storage and management of digital data more flexible , as it eliminates the use of expensive and complex hardware. 

In order for the service to be of high quality and offer at least the same level of storage, we can point to another objective: to be a scalable base for the business.

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Technology has made data increasingly relevant. 

Business managers no longer made decisions based only on their experience, but mainly considering data, information, profiles, numbers and metrics. 

This information, which came from various business fronts, made it possible to refine their actions, strategies, products and services, which led to the companies’ exponential growth.

Thus, the objective behind cloud computing was not only to serve as a storage alternative, but a platform for data processing.

The evolution of this technology has enabled many uses, as will be seen below. And, today, it is a precursor of technological innovations, such as Internet of Things, Edge Computing, Artificial Intelligence, among others.

How does cloud computing work?

The operation of cloud computing is based on data centers that certain organizations own or rent to third parties. They are responsible for storing and processing the data, programs, systems and infrastructure that customer’s access.

See two examples below.

To use the email tool, you don’t need to install any software, just access it via browser or app. After all, the messages are stored in your email provider’s cloud.

The same goes for ERP or CRM. Thus, you and your team have access to a whole arsenal of resources and functionalities processed in the cloud.

What is the importance of cloud computing for a business?

Cloud computing allowed organizations to start seeing data as crucial tools, which increased competitiveness and provided consumers with high quality products and services.

Technology changed the market and proved to be much more efficient and advantageous for companies. Have you ever thought about the difficulty of operating without a good management system (ERP)? 

In this scenario, cloud computing plays a leading role. In fact, the digital transformation process itself owes a lot to this technology.

Therefore, outsourcing data storage and the development of technological solutions is no longer a differential, but a necessity. It is a strategic decision for any company.

What are the types of cloud computing?

The cloud market is broad and requires managers to have a greater understanding of the existing cloud types.

Check out a brief summary about them!

1. Public Cloud

The Public Cloud is provided by a provider that is responsible for the hosting, maintenance, management and security of its customers’ data .

Check out its features: 

  • Server sharing takes place, which significantly reduces your costs;
  • The user is only concerned with paying for the applications he needs — software or hardware;
  • The model is indicated for companies that seek to modernize without compromising their budget.

2. Private Cloud

The Private Cloud, as the name suggests, has similar functions to the public one, but is built by specialized providers or by an internal team, to be exclusive to a company.

Its characteristics are:

  • The server is built exclusively for one company;
  • There is no sharing and sharing of costs with external users; 
  • It is the option of medium and large organizations, especially those that work with financial transactions and need to reinforce the protection of their data.

3. Hybrid Cloud

The Hybrid Cloud is a combination of the previous ones.

In this case, the company can rely on a private cloud for more strategic and confidential information and another public cloud for common data and processes.

What are the services offered in cloud computing?

There are three types of cloud services to meet different needs.

These concepts are part of the daily life of those who work in the IT sector, but must be understood by any manager and entrepreneur. Follow!

1. Software as a Service (SaaS)

Software as a Service (SaaS) are resources hosted in the cloud that can be accessed by the user through a computer, Smartphone and other devices, such as Smart watch and Smart TV.

According to Statista , the SaaS market could reach $195 billion USD by 2023.

This is a very advantageous service capable of promoting business scalability, as it can be accessed by anyone, regardless of where they are.

Check out other interesting benefits:

  • Mobility;
  • Cost reduction;
  • High Availability;
  • Ease of customization;
  • Reduction of IT infrastructure;
  • Less bureaucratic and time-consuming updates.

2. Platform as a Service (PaaS)

The Platform as a Service (PaaS) can be summarized as a development environment located in the cloud capable of delivering resources that streamline the creation and management of systems.

With this, the user does not need to worry about the infrastructure necessary to develop a system, such as servers, operating systems and network, as this is the responsibility of the provider.

It is possible to use the public model (the team can work anywhere) or the private one (the team only has access to the service in a specific environment).

The benefits of this cloud model are:

  • Less spending on infrastructure;
  • Adaptation to the needs of the company;
  • Possibility to focus on your core business;
  • Less time to implement the platform;
  • Cost reduction for system development.

3. Infrastructure as a Service (IaaS)

Infrastructure as a Service (IaaS) is a cloud computing service in which the user hires the necessary infrastructure to store their applications.

The provider cares about servers and networking. The contractor is responsible for selecting, installing, and configuring the features necessary for the system to operate properly.

The benefits of this service are:

  • Flexibility;
  • Cost reduction;
  • Increased data security;
  • Increased application performance;
  • Agility to implement changes and correct failures.

How can cloud computing be used?

Cloud computing is an enabling technology, which serves as a basis for other technologies to be used, leveraged and developed.

Therefore, there are a number of segments that can adopt cloud computing, such as:

1. Develop apps

Technology allows a company to have at its disposal an entire infrastructure to test its solutions. A fully controllable, measurable and customized environment.

Thus, it is possible to make the search for bugs and opportunities for improvement more assertive.

It is very common for companies that adhere to the DevOps culture, which combine the development part with operations to speed up deliveries.

2. Data storage and retrieval

Cloud storage allows for the development of a much more stable and controlled work environment.

Thus, sharing is simplified and your teams can exchange information without fear of losing data — as they will always be stored in the cloud.

3. Backup

With the cloud, there is no real danger of you losing your data.

Decentralized storage allows for such flexibility that, even in the face of natural disasters, the provider has backups of the information stored in its database.

The frequency of backups may change according to the contract signed (hourly, daily, etc.), but the level of integrity of the information remains high!

4. Artificial intelligence

Artificial Intelligence is an incredible technology, but to be a reality it depends on many things, such as Big Data and cloud computing.

Therefore, the cloud is essential so that AI machines and tools can process data and automate executions, in order to gain autonomy and perform tasks more efficiently.

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