What is the term “cloud computing”? An explanation of what you need to know about clouds

Put simply, what is cloud computing?

In order to provide speedier innovation, flexible resources, and economies of scale, cloud computing is the distribution of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (also known as “the cloud”).

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What is the process of cloud computing?

Instead of having their own data centers or computer equipment, businesses may rent cloud service providers’ access to everything from storage to apps.

Employing cloud computing services allows businesses to pay for the IT infrastructure they use when they need it, saving money and simplifying the process of owning and maintaining their own IT infrastructure.

In turn, by offering the same services to a broad range of clients, cloud computing service providers may reap the benefits of enormous economies of scale.

What are the available cloud computing services?

These days, cloud computing services come in a wide variety of forms, ranging from the fundamentals of networking, storage, and processing capacity to ordinary office programs, artificial intelligence, and natural language processing. These days, the cloud can provide almost any service that doesn’t need you to be physically near the computer gear you’re utilizing, including quantum computing.

What kinds of cloud computing are there?

Cloud computing serves as the foundation for several services. This ranges from consumer services like Gmail and cloud-based photo storage on smartphones to services that let big businesses store all of their data and operate all of their apps on the cloud. For instance, Netflix’s video-streaming service and other business processes are powered by cloud computing services.

As software companies attempt to transition to a subscription model, more and more of them are delivering their programs as online services rather than separate products, making cloud computing the default choice for many apps. Cloud computing may have drawbacks, too, in that it may also come with additional expenses and dangers for businesses that use it.

What does cloud computing mean?

One of the core ideas of cloud computing is that the user doesn’t really care where the service is located or how detailed it is—including the hardware and operating system it runs on. The public telephone network (and eventually the internet) was frequently shown as a cloud in these diagrams to indicate that location didn’t matter—it was just a cloud of stuff. With this in mind, the metaphor of the cloud was borrowed. Naturally, this is oversimplifying the situation; for many clients, the location of their data and services is still a major concern.

How did cloud computing come to be?

The phrase “cloud computing” dates back to the early 2000s, but the idea of “computing as a service” dates back much farther, to the 1960s, when computer bureaus made it possible for businesses to rent mainframe time rather than having to own one outright.

These “time-sharing” services were mostly superseded by the development of the PC, which greatly reduced the cost of computer ownership, and by the emergence of corporate data centers, which allowed businesses to store enormous volumes of data.

However, the idea of leasing access to processing power has come up again in the late 1990s and early 2000s with utility computing, grid computing, and application service providers. After that came cloud computing, which gained significant traction with the introduction of software as a service and the rise of hyperscale cloud computing companies like Amazon Web Services.

To what extent does the cloud matter?

The majority of IT spending now goes toward building the infrastructure necessary to support cloud computing, with traditional in-house IT spending declining as computing workloads continue to migrate to cloud-based solutions, whether they are private clouds developed by businesses or public clouds provided by vendors.

Like it or not, it’s becoming more and more obvious that the cloud has prevailed when it comes to corporate computing platforms.

According to tech researcher Gartner, by 2025, up from 41% in 2022, as much as half of investment in the markets for system infrastructure, application software, infrastructure software, and business process services would have moved to the cloud. According to predictions, cloud computing will account for over two thirds of application software spending by 2022, up from 57.7% in 2022.

This change only became more noticeable in 2020 and 2021 as companies expedited their plans for digital transformation in response to the epidemic. Companies learned how crucial it was to have access to their computer infrastructure, apps, and data from anywhere their employees were working, not just from an office, during the lockdowns that occurred during the epidemic.

According to Gartner, the ongoing move to the cloud will be driven by the need for composable design, agile work processes, and integration capabilities.

Spending on the cloud is getting bigger and bigger. IDC, a tech researcher, projects that spending on cloud infrastructure would have increased by 8.3% to $71.8 billion in 2021, compared to just 1.9% for non-cloud infrastructure. In the long run, the analyst projects that expenditure on cloud computing and storage infrastructure would expand at a compound annual growth rate of 12.4% between 2020 and 2025, reaching $118.8 billion at that point, or 67.0% of the total amount spent on compute and storage infrastructure. In contrast, non-cloud infrastructure spending is expected to remain steady and total $58.6 billion by 2025.

While specifics may vary slightly, all forecasts on cloud computing spending go in the same way. They all describe the same momentum: according to industry analyst Canalys, global spending on cloud infrastructure services exceeded $50 billion in a single quarter for the first time in Q4 2021. Spending on cloud infrastructure services increased by 35% to $191.7 billion over the course of the entire year.

According to Canalys, augmented and virtual reality, as well as the metaverse, are already posing a threat to cloud computing. Over the next ten years, this will have a major impact on infrastructure deployment as well as cloud service spending. The metaverse will be similar to the internet in many aspects, but with more features and a higher rate of compute usage, according to the expert.

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