Cloud Computing: Definition, Examples


Cloud Computing is a technology that delivers various services over the internet, such as data storage, servers, databases, networking, and software. Instead of keeping files on a proprietary hard drive or local storage device, cloud-based storage makes it possible to save them to a remote database. This technology provides the advantage of accessing your data from any device with an internet connection, improving efficiency, flexibility and reducing IT costs.


The phonetics for “Cloud Computing” would be: klaʊd kəmˈpjuːtɪŋ.

Key Takeaways

  1. Scalability and Flexibility: Cloud computing offers a high degree of flexibility and scalability for businesses. It allows companies to scale up or down their IT departments according to the business demands. Cloud services are ideal for businesses with growing or fluctuating bandwidth needs.
  2. Cost-Effective: Cloud computing reduces the high cost of hardware. Businesses can deploy their services faster with improved manageability and less maintenance. They can adjust their plans to fit their budget and business goals, providing a significant cost saving over in-house data centers.
  3. Data Recovery and Security: Cloud computing provides better security when any sensitive data has been lost. As the data is stored in the cloud, it can be accessed no matter what happens to your machine. Also, most cloud providers offer a set of policies, technologies, and controls that enhance your security posture overall, protecting your data, apps, and infrastructure from potential threats.


Cloud computing is crucial in the modern era due to its flexible, efficient, and cost-effective nature. By migrating to the cloud, companies can store and manage vast amounts of data without maintaining expensive, physical IT infrastructure, thereby reducing overhead costs. It also provides the capability to access services and resources on-demand, ensuring operational efficiency. With its built-in data backup, disaster recovery, and data replication features, cloud computing also increases data security. Additionally, its ability to scale resources according to business needs promotes agility and competitiveness in rapidly evolving markets. Hence, cloud computing plays a key role in digital transformation and business growth.


Cloud Computing is a technology that aids organizations and individuals to use a collection of services over the internet without having to maintain or manage computing infrastructure. Essentially, cloud computing is designed to make information technology (IT) more efficient and accessible for users. This is achieved by allowing them to access software and hardware that they may not otherwise have on hand. By providing these resources as a service over the internet, organizations can scale their infrastructure according to demand, only paying for what they consume, and thus eliminating the need for costly investments in on-premises hardware and software.Moreover, cloud computing is often used for data storage solutions, which can significantly reduce costs for businesses compared to traditional, physical storage methods. These services usually include secure data backup, database processing, artificial intelligence (AI), and machine learning capabilities. Another common use is in the development of new software and services. Developers can quickly configure cloud-based resources and launch applications without having to spend time and resources on setting up a physical infrastructure. This not only accelerates the development process but also allows for more experimentation and innovation. Whether for individuals or businesses, the critical purpose and use of cloud computing extend to enhance efficiency, scalability, and flexibility, all while reducing costs.


1. Google Drive: Google Drive is a popular cloud computing service that allows users to store files online and access them from any device with internet connectivity. It also provides collaboration features such as simultaneous document editing. 2. Amazon Web Services (AWS): AWS provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a pay-as-you-go basis. It offers solutions for hosting web applications, providing powerful computing resources, data storage, and other tools.3. Salesforce: It’s a cloud-based customer relationship management (CRM) platform that helps businesses connect with their customers, partners, and potential clients. It integrates with other software and services to streamline business processes, store customer data, track sales, conduct marketing activities and provide customer service.

Frequently Asked Questions(FAQ)

Q: What is Cloud Computing?A: Cloud Computing is the delivery of on-demand computing services over the internet on a pay-as-you-go basis. These services include servers, storage, databases, networking, software, analytics, AI and more.Q: Is cloud computing secure?A: While no system is completely foolproof, cloud computing can be more secure than traditional IT infrastructure. Cloud service providers have high-level security protocols and constantly update their software to protect against potential cyber threats. However, users play a crucial role in managing and maintaining the security of their data in the cloud.Q: What are the benefits of Cloud Computing?A: Cloud computing offers various benefits such as cost-effectiveness, scalability, flexibility, mobility, disaster recovery, and higher collaboration efficiency. By only paying for the services you use, you can reduce operational costs and run your infrastructure more efficiently.Q: What are the different types of Cloud Computing?A: There are primarily three types of cloud computing: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Each type has its own specific features and benefits suitable for different needs and use cases.Q: What is the difference between Public, Private, and Hybrid Clouds?A: Public clouds are operated by third-party providers, and services are delivered over the internet. In a private cloud, services are maintained on a private network for a specific business or organization. Hybrid cloud is a combination of both, allowing data and applications to be shared between them.Q: Who are the major Cloud Computing service providers?A: Major Cloud Computing service providers include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, IBM Cloud, and Oracle Cloud.Q: How does Cloud Computing affect jobs?A: Cloud computing has created a number of new roles in designing, managing, and maintaining the cloud. However, it can also lead to job replacements as it automates various tasks, requiring fewer human resources.Q: Can I move my existing applications to the cloud?A: Yes, most applications can be migrated to the cloud. However, the complexity and success of this migration depend on the nature of the application, the architecture of the current environment, and the cloud provider chosen.

Related Finance Terms

  • Virtualization
  • Public Cloud
  • Private Cloud
  • Hybrid Cloud
  • Infrastructure as a Service (IaaS)

Sources for More Information


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