What is cloud computing?

Cloud services — programs that run on the internet instead of on local devices — are quickly becoming the standard for online company operations. As of 2025, roughly 96% of businesses use the cloud as part of their business strategy, and global spending on cloud services is reaching $723.4 billion. 

What is cloud computing?

Cloud computing — immediate access to applications like networks, databases and servers over the internet — is quickly becoming a staple in business. It encompasses both the public cloud — an on-demand service in which data storage is managed by a third-party provider — and the hybrid cloud — a mixed environment combining public and private cloud services.

Virtually all industries can benefit in some way from cloud services. Many companies choose to store data in the cloud rather than locally on a server. Other organizations use the cloud to allocate user permissions so that each employee has access to the right files, networks and contacts.

Cloud services have evolved from a 1963 Massachusetts Institute of Technology project into the online file-sharing process, computing resources users enjoy today. Cloud computing as a practice leapt forward in 1999 when Salesforce, a popular customer relationship management (CRM) platform, became a successful case study for secure, online data storage.

Amazon redefined private and hybrid cloud computing in 2006 with the debut of its Amazon Web Services. Amazon Web Services became the first cloud provider allowing users to rent virtual computers for private or corporate use. Google Docs would launch the same year, the first cloud-native office suite available online. Another prominent cloud service provider is Microsoft Azure. 

Today, cloud platforms continue to evolve to parallel developments in modern cybersecurity threats. While traditional servers might lack adequate backup storage or regular security updates, thereby jeopardizing data, responsible cloud providers feature enhanced data security protocols and automatic security updates.

What are the advantages of using the cloud?

Cloud-based programs offer several advantages over locally stored applications. Cloud platforms are typically more secure since providers have invested heavily in data protection, such as built-in security features.

The cloud is also more convenient. As long as users have internet access, they can get to their files from anywhere on the planet.

Cloud computing can also play a role in the daily lives of a variety of people, from the average person looking to store pictures or documents on a cloud service to system engineers or IT architects managing a cloud environment.

In other words, the cloud is here to stay. Anyone looking to explore its capabilities in their career will need to earn a cloud education through an accepted technology degree.

Types of cloud computing

In 2012, computer technology provider Oracle introduced Oracle Cloud to the public market. For the first time, businesses using third-party cloud services had three different options to choose from: SaaS (Software-as-a-Service), IaaS (Infrastructure-as-a-Service) and PaaS (Platform-as-a-Service).

Each type of cloud services are independent models. Companies can determine the individual type of cloud resources that best accommodate their size, industry and needs.

Despite their differences, all cloud services offer on-demand cloud access to customers. Cloud customers can store information, access data, transfer files and correspond with other users through third-party cloud services. These services are engineered to provide easy, secure cloud storage options that can be tailored for each client.

For example, a small business might only need to store receipts and transactions online. Conversely, a larger cloud service provider might require an entirely customized cloud infrastructure.

SaaS

One popular type of cloud computing is SaaS, which allows users to access virtually unlimited amounts of data through an internet connection. Through the SaaS model, users obtain access to their cloud data through a web browser and a third-party cloud provider.

SaaS cloud services connect customers with critical online tools. Everyone likely uses SaaS applications daily without realizing it. Examples of popular SaaS programs are email, shared calendars, online spreadsheets and internet messaging tools.

IaaS

A type of cloud service often offered as an enterprise service, IaaS platforms specialize in virtualization, networking and data storage. Many IaaS providers offer pay-as-you-go payment options, so users only pay for the bandwidth and the storage limits their project requires.

Cloud service providers implement IaaS solutions to save money on server costs and hardware maintenance. IaaS programs also help minimize downtime without the need for on-site data centers.

Many companies trust IaaS cloud platforms to handle all corporate data, correspondence and web elements. Examples of popular IaaS providers are Microsoft Azure, IBM Cloud, Digital Ocean and Vultr.

PaaS

A robust cloud solution, PaaS provides everything a customer needs to leverage full-scale cloud computing. PaaS often includes elements available for IaaS clients, but also offer tools for database management, business intelligence and business development.

PaaS cloud solutions are meant to service a client’s entire cloud life cycle. When a customer partners with a PaaS provider, they receive everything they need to create, test and deploy a customized cloud application. Many PaaS providers also offer regular cloud infrastructure updates, keeping networks well protected against emerging cybersecurity threats.

Which fields use cloud computing?

A wide variety of fields rely on the cloud for everyday operations. Whether building a cloud infrastructure, protecting an organization’s data or managing an active cloud network, every IT field likely uses the cloud in some capacity.

Some of the occupations that use the cloud include:

• Systems administrators: Configure computer systems and ensure smooth, ongoing server operations across one or more different cloud environments. To get involved in systems administration, learn how to troubleshoot and resolve server issues.
• Software engineers: Develop and continually test a variety of software programs, many of which integrate directly with cloud processes. To get involved in software engineering, learn math and engineering fundamentals before studying computer science.
• Network engineers: Design, install and monitor cloud networks for all corporate users. Network engineering requires a basic understanding of programming languages and network design skills.
• Cybersecurity engineers: Identify and mitigate potential threats to all cloud programs. To get involved in cybersecurity, a degree in cybersecurity from a reputable university is required.
• IT architects: Design and sustain networks across cloud and traditional server environments. To get involved in IT architecture, get familiar with in-demand IT skills and pursue a degree in information technology.
• Information systems managers: Monitor all hardware, software and cloud systems used across a company or organization. To get involved in information systems management, work toward a master’s degree in information systems after completing a related undergraduate program.
• Business developers: Maintain relationships with business partners, clients, customers and any cloud providers. To get involved in business development, complete a business or marketing degree before pursuing further education in professional management.

After completing the necessary educational steps, which may also require certifications by third-party providers, students will be ready to pursue an IT job. These and other career options can connect students with opportunities to leverage the cloud daily.

What are the benefits of cloud computing?

The cloud offers several distinctive advantages to both professional and individual users. Businesses and individuals might experience some or all of the following benefits:

• Cost savings: Hardware, software … data centers, with their racks, servers, IT managers and electricity usage — all these necessities become superfluous when transitioning to the cloud. Even better? The costs of maintaining them disappear, too.
• On-demand availability: With most cloud services available on a self-service basis, the right amount of resources for a company can be scaled, minus the time-consuming task of capacity planning. As for the data itself, it’s always available as long as there is a solid internet connection.
• Storage options: Cloud storage lets company's maintain data off their premises without compromising security. Depending on a company's needs, they may opt to leverage a public cloud hosted by a third party, a private cloud used exclusively by one or select companies or a hybrid cloud, which lets data and applications transfer between public and private clouds.
• Accessibility: Need to access data from the office? From home? From the beach? One of the biggest benefits of the cloud is the accessibility it offers: All that is needed is a solid internet connection.
• Flexibility: The ability to access data from virtually any place is one part of the cloud’s flexibility. This is a fact that directly benefits employees because they can work from anywhere and collaborate easily. The other part of this flexibility is in the ways it can answer a company’s specific needs. With different storage options, scalability measures and even types of cloud services, there is something for virtually everyone.
• Scalability: Cloud services can adapt to a company’s needs. As an organization grows, it can easily leverage more IT resources. Once a big project wraps up and a company needs to downsize, they can do so relatively quickly without having to worry about maintaining or offloading equipment. Computing power, storage and bandwidth are all available as needed. Even more compelling is the time using the cloud frees up for IT staff. Instead of maintaining data centers, both in terms of updating equipment and physically organizing it on racks, the company’s IT team can focus on progressing toward other goals.
• Loss prevention: Because cloud networks are regularly updated with the latest hardware, and because cloud providers generally provide technologies and controls to bolster security, data is safe in the cloud. Another added benefit? A cloud network enables data redundancy—data can be mirrored at multiple sites—so that, should the worst happen, whether it’s a network breach, a hurricane or something in between, data recovery is fast and relatively painless.
• Simple implementation: Like buying a new car, the hard part of implementing cloud services happens in the beginning. Organizations need to consider their strategy and goals and find a service provider that can best meet those objectives. From there, they need to develop a transition plan and possibly a training plan so everyone from the CEO to the new hire knows how to leverage the new capabilities. After that, well, it’s time to take it for a spin.

Ready to learn more about cloud computing?

For many organizations, cloud computing is the way they do business. If you're interested in learning more about working in the field, take a look at the Cloud Computing Certificate at University of Phoenix.