Cloud – A comprehensive look at the cornerstone of digital transformation

Welcome to our glossary series, where we explain complex and technical terms in simple language. Today, we're decoding the phenomenon of the ‘cloud’ – a term that serves as the basis for 21st-century digital innovation.

What is the ‘cloud’?

The cloud refers to the provision of IT infrastructure, applications and services via the internet. Instead of purchasing and operating their own physical data centres and servers, companies use cloud services to store, process and manage data. It offers companies and individuals the ability to access data and applications from anywhere, as long as they have an internet connection.

Types of cloud

1. Public cloud: Public cloud services are offered by external cloud service providers such as Amazon Web Services (AWS), Google Cloud or Microsoft Azure. Users share the same infrastructure, which is managed by the providers.

2. Private cloud: In a private cloud, the services and infrastructure are reserved for a specific user or organisation and are located either in the company's data centre or at a hosted third-party provider.

3. Hybrid cloud: A mixture of private and public clouds. Companies keep sensitive data in the private cloud, while the public cloud is used for less sensitive data and applications.

Cloud service models

1. Software as a Service (SaaS): In this model, a provider makes applications available via the Internet. Examples include email services such as Gmail and office applications such as Microsoft 365.

2. Platform as a Service (PaaS): PaaS involves the provision of hardware and software tools on the web, specifically for development purposes. Examples include Google App Engine and Red Hat's OpenShift.

3. Infrastructure as a Service (IaaS): Here, the provider provides the network, servers, storage and data centre. AWS, Google Compute Engine and Microsoft Azure are well-known IaaS providers.

Advantages of cloud computing

1. Flexibility: Cloud services eliminate the need to purchase and maintain expensive hardware. They enable resources to be scaled up and down quickly as needed.

2. Cost savings: The cloud transforms high initial investments into predictable running costs.

3. Resilience and recovery: The cloud offers robust disaster recovery solutions and ensures business continuity.

4. Mobility: Users can access their data and applications from anywhere and work together.

Conclusion

The cloud is a key driver of digital transformation and innovation. Through increased use, small to large businesses and individuals are accessing an enormous pool of resources and applications whose accessibility and scalability were previously unthinkable. However, there is a need to consider and address the implications for security and privacy concerns. With careful planning and management, the cloud can enable a sustainable and efficient path to digitalisation.