What is Cloud Computing?

Cloud computing is a technology that allows businesses to use remote servers on the internet to store, manage, and process data, rather than relying on local servers or personal computers. It comprises three main elements:

  1. Cloud-Based Software
  2. Cloud-Based Infrastructure
  3. Cloud-Based Platforms

Cloud-Based Software

Definition: Cloud-based software refers to programs that utilize the internet to deliver tools and store data on remote servers. This is often known as Software as a Service (SaaS).


  • Internet banking
  • G Suite (word processor, spreadsheet, email, file storage)
  • MYOB (accounting software)
  • Dropbox (file storage)
  • Canva (design and presentation tools and templates)
  • Salesforce (customer relationship manager)
  • Zoom (video conferencing)


  • Easy Setup and Use: Cloud-based software is typically easy to set up and use immediately, without the need for complex installations or configurations.
  • Remote Access: Users can access the software from any device connected to the internet, such as computers, laptops, tablets, or mobile phones. This is particularly beneficial for remote working models.
  • Multi-User Access: It’s easy to share access with multiple staff members in the work environment and remotely.
  • Document Sharing: Cloud-based software facilitates the sharing of documents and business records with professional service providers like accountants and legal advisors.
  • Frequent Updates: The software is regularly updated, ensuring that users always have access to the latest features and security enhancements.
  • Integration with Other Tools: Many common business tools are compatible with and interact seamlessly with other digital platforms, such as transferring data to tax authorities from cloud-based accounting software.
  • Cost-Effective: Businesses don’t need to invest in expensive networking infrastructure like network servers or backups. Cloud providers handle these aspects.
  • Disaster Recovery: The software can remain up and running during natural disasters or other incidents, ensuring business continuity.


  • Ongoing Costs: Unlike purchasing software outright, cloud-based software requires monthly or yearly payments, creating an ongoing expense.
  • Vendor Lock-In: Data may not be easily portable to another competing service, and access could be lost if the account is closed.
  • Workflow Interruptions: Software updates may temporarily interrupt workflow.
  • Lack of Control: Providers may change the software as it’s being used, which could include interface changes or removal of features.
  • Downtime: Maintenance, cyberattacks, or network issues controlled by the provider can impact availability.
  • Internet Dependence: Any loss of internet access renders the software inaccessible.

Cloud-Based Infrastructure

Definition: Cloud-based infrastructure includes hardware, storage, and network resources that are hosted remotely. Businesses use this infrastructure to host services and applications in the cloud.


  • DigitalOcean
  • Linode
  • Amazon Web Services (AWS)
  • Cisco Metacloud
  • Microsoft Azure


  • High Availability: Cloud infrastructure ensures high availability even in the event of a natural disaster.
  • Scalability: Resources like server size and disk space can be scaled up or down as needed.
  • Remote Management: Businesses can manage server space remotely, reducing the need for on-site IT resources.
  • Cost-Effective: Pay only for what is used, making it a cost-effective solution.
  • Enhanced Security: Cloud providers offer robust security measures to protect data.
  • Backup and Recovery: Easy backups and disaster recovery options are available.
  • Global Access: Access to data from any location with internet connectivity.


  • Ongoing Costs: Regular monthly or yearly payments are required.
  • Shared Resources: Resource pooling by providers means that multiple businesses share the same server infrastructure.
  • Scaling Limitations: Resources can typically scale up easily but may not scale down as efficiently.
  • Data Location: Cheaper vendors may be located outside the country, which can be a concern for data location and security.
  • Transition Challenges: Changing providers requires porting software and data to a new provider, which can be slow and complex.

Cloud-Based Platforms

Definition: Cloud-based platforms provide complete development and deployment environments. These platforms are used to build, test, deploy, manage, and update software applications.


  • AWS Elastic Beanstalk
  • Google App Engine
  • Apache Stratos
  • OpenShift
  • IBM Private Cloud
  • Cisco


  • Scalability: Resources can grow with the business, accommodating increased traffic and usage.
  • Resource Management: Provides comprehensive resource management and support.
  • Secure Services: Cloud platforms offer secure services with limited downtime.
  • Cost-Effective: Pay only for what you use, making it a flexible and cost-effective solution.
  • Infrastructure Support: Providers handle the provisioning and management of infrastructure.


  • Substantial Investment: Implementing cloud-based platforms at an enterprise level may require significant time, resources, and planning.
  • Complexity: Implementation can be complex, requiring due diligence and coordination across different areas of the business.
  • Vendor Lock-In: Switching to a new platform can be challenging and may involve significant effort.

Selecting Cloud-Based Software and Service Providers

When choosing a cloud-based software or service provider, consider the following key areas:

  • Data Availability and Business Functionality: Ensure that your data and business functions remain accessible and operational.
  • Data Protection: Safeguard data from unauthorized access.
  • Incident Handling: Have robust incident handling procedures in place to maintain business continuity and protect your reputation.
  • Contracting Cloud-Based Services: Draft comprehensive contracts and service level agreements (SLAs) that cover data security, access, and ISO standards adherence. Consult IT, business, and legal advisors to ensure the contract protects your business.

For businesses looking for .NET solutions, including ASP dot net maintenance services, asp dot net migration services, and dot net application migration services, partnering with a reputable development company is essential. Their expertise ensures seamless transitions and robust application maintenance, allowing businesses to leverage the full benefits of cloud computing.


Cloud computing offers numerous benefits for businesses, including ease of access, scalability, cost-effectiveness, and enhanced security. However, it’s essential to be aware of the associated risks and carefully select service providers that align with your business needs. Businesses can leverage cloud computing to drive growth, innovation, and operational efficiency by doing so.


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