What is cloud computing and how does it work?

Chances are, even if you don’t know a thing about cloud computing services, you’ve probably still used them at some point.

Cloud computing, or “the cloud” for short, refers to tasks and services provided or hosted via the internet on a pay-as-you-go basis. People have been able to store, operate, and manage data via the internet for some time, but cloud computing does this on a much larger scale.

Let’s look in more detail at what the cloud is and how it works.

How does the cloud work?

First off, it’s important to clarify that the cloud still requires physical components. While you may not save your files directly to your computer, they still need to be attached to some hardware. When you upload something to a cloud service like Dropbox, the file is sent via the internet to a server—a real, tangible server. Cloud service providers will have hundreds and thousands of physical servers, collectively known as “server farms,” located in data centers around the world.

So, at its most simplified level, the cloud is a collection of servers and data centers scattered across the globe that store data. Essentially, it’s a digital storage unit where you can keep all your files. With the cloud, you can access your data from any device so long as it has an internet connection.

When you save a file to the cloud, you’re storing it online. Anybody with the right resources and infrastructure can host their own cloud. But it’s no easy task, and it’s certainly not cheap. So when we talk about what a cloud service is, we’re talking about high-level services offered by a provider like Dropbox.

Let’s use electricity as an example. It’d cost a whole lot and require a ton of maintenance to keep a private generator in your home. Instead, we have energy providers who operate one generator that anybody can access and pay for what they use. In the same sense, it’s far more efficient and cost-effective for a cloud service provider to host and store your data, than building your own infrastructure.

What are some examples of cloud computing?

At its simplest level, the cloud is a digital storage solution, but there are many more services based on the cloud. You can break cloud computation down into three different core functions: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) models.

Infrastructure as a Service (IaaS)

IaaS refers to cloud providers offering their server space for anything from data storage to web hosting. In this case, you’d handle the data, website, or app, while the cloud provider rents you the computing resources to do so.

Using Dropbox for file storage is an example of an IaaS. You can access, alter, and add data as you please, while Dropbox provides the servers to host it. Almost every website you visit is hosted through the cloud, thanks to IaaS models.

 

Platform as a Service (PaaS)

PaaS is similar to IaaS, but it gives a little more control to the cloud provider. 

In the past, developing software and testing it locally required a lot of time, money, and space. PaaS provides a virtual platform for backend development and testing, giving programmers a virtual framework to develop software online, with all the servers and storage still handled by the provider. So, rather than risk a loss by developing and testing on-premises, PaaS models offer a virtual solution.

 

Software as a Service (SaaS)

SaaS refers to any software that runs via the cloud. Take Dropbox Sign, for example. With this cloud-based app, you can sign legally binding documents online instead of using pen and paper—and access the app from any device. 

So, IaaS models offer the most control over your resources and cater to admins for hosting and storage. PaaS models provide less control and cater to developers for building. SaaS models offer the least control and cater to everyday users.

What are the different types of cloud environments?

There are four basic cloud environments that can comprise any IT infrastructure.

 

Public cloud

The public cloud refers to cloud services that anybody can utilize. Amazon Web Services (AWS), Microsoft Azure, Google Cloud & Google Drive, iCloud, and Dropbox are all public cloud services. Anybody using Dropbox is renting a share of its server space. 

The public cloud is a shared environment, similar to a big office but every end-user has their own secure desk and cabinet. This secure dedicated space is also called a virtual machine. 

Virtualization allows for each end-user to have their own virtual machine in a separate secure space on the same physical server. Virtualization thus makes the best use of the physical hardware in a server. This efficiency is why anyone can use cloud services on demand at a low cost.

 

Private cloud

The virtual machine and all cloud infrastructure in the private cloud are dedicated to a sole customer. You’ll still be hosting everything through the internet, but the server that hosts your data will be your own. Some may opt to use private cloud services for a bit of added security, while others may need to use the private cloud for performance.

 

Hybrid cloud

Hybrid clouds make use of both in-house servers and public cloud servers. You can keep bigger or more private documents in the private cloud but keep everything else on the public cloud.

 

Multicloud

Multicloud is when a business uses multiple public cloud platforms, instead of a combination of private and public. Multicloud solutions generally occur because various cloud service providers will offer different functionality, and one business may need all of them.

How do businesses use the cloud?

The benefits of cloud computing for businesses go far beyond its role as a simple storage solution. Cloud computing has become an essential driver for the productivity, efficiency, growth, and organization of modern workplaces. Here are just a few examples of cloud computing benefits.

 

Cost savings

Doing everything on-premises can be extremely costly. Maintaining IT systems and equipment on-site is an unnecessary expense with the cloud. As a pay-as-you-go service, cloud computing will significantly reduce hardware, staffing, and energy consumption costs. Plus, less time handling IT issues means more time focused on your goals.

 

Disaster recovery

Backing up all your important files and data to the cloud provides a crucial bit of extra protection. You’d be taking a significant risk to keep everything stored in only one place. Anything from a natural disaster to a malware attack could leave you empty-handed at any given moment. As such, the cloud provides a hugely important service by backing up your data on multiple servers in multiple locations.

 

Protect and secure data

Despite what some may believe, cloud computing services provide excellent cloud security for your private data. You may assume it’s safer to keep everything where you can see it, but you can think of the cloud like a bank vault. Cloud service providers will encrypt your data, prioritizing its safety and protection.

Just like a bank vault is the most secure way to store valuables, the cloud is designed to be the most secure way to store data. And in most cases, you’ll be able to set your own security settings so your cloud storage works for you.

 

Scalability

Cloud computing offers businesses a bit of extra flexibility to grow. The bigger your business, the more space, time, and money required to operate it. Being able to use the cloud as needed provides a virtual environment to facilitate this growth. 

On the other hand, if the business does decline, you know that you won’t be paying for equipment or resources that you no longer need. With cloud computing services, you only pay for what you use.

 

Flexibility

With everything stored and operated via the cloud, you’ve got the flexibility to work from anywhere. As the idea of the workplace continues to evolve, cloud computing is playing a fundamental role in allowing companies to function virtually. Cloud computing also facilitates connectivity, giving access to files and data from mobile devices.

 

Collaboration

Being able to not only save your files but also create and edit them while they’re stored safely in the cloud encourages more efficient collaboration. With cloud computing, you can have a team of ten all working from different locations on the same document. This makes organization and resource management within a team simpler than ever.

Advantages of cloud computing for personal use

There are plenty of ways you can benefit from using cloud solutions at home. 

The clearest advantage is, of course, the memory space you’ll save on your devices. If you don’t currently use cloud storage, then most of your files are probably saved on your computer or smartphone. If you run out of space on that device, you might opt for an external hard drive, and if that gets filled up, you’ll get a second external hard drive, and so on. Suddenly, it becomes a whole lot trickier to find that old document you urgently need.

Having all your files saved in one virtual place—that doesn’t take up any of your personal space—will help you keep everything organized and under control, while saving you money on buying hardware. It’ll also help improve your operating system's computing power as you migrate a bulk of your files to the cloud.

Sharing with loved ones becomes a whole lot easier, too. You can, for example, set up a collaborative photo album that anyone in your family can access.

Re-define cloud computing, encourage readers to give it a try to free up space on their devices, and end with a CTA for Dropbox’s smart workspace.

Straightforward, safe cloud storage with Dropbox

Cloud computing allows you to access your data from any device that’s connected to the internet. And with Dropbox, this has never been easier.

Dropbox is building the world's first smart workspace. By connecting all the content and tools you use, everything is easily accessible in the Dropbox productivity app. No more switching between platforms, apps, and content types—a smart workspace lets you use them in one place, providing flexible IT management.

And you can trust that your personal files just as safe as your work documents—the advanced Dropbox security infrastructure protects your files from unauthorized access. So you can free up space on your devices and keep them safe in the cloud.