Cloud computing has become essential for digital transformation. It provides on-demand access to computing resources and helps businesses lower costs and gain flexibility. The major types of cloud include public, private, and hybrid clouds. Common cloud services are SaaS, PaaS, and IaaS. Leading cloud platforms that offer these services are AWS, Azure, and Google Cloud. Migrating applications and workloads to the cloud requires careful planning and strategies like rehosting, refactoring, revising, rebuilding, and replacing to ensure success.
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What is Cloud Computing? A Complete Guide
1. What is Cloud Computing? A Complete
Guide
Cloud computing initiatives have attained a position of key importance in any
digital transformation strategy. With enterprises paradigmatically shifting their
focus from incremental to transformational benefits, cloud computing along with
other emerging technologies like IoT, Data Analytics, and AI has made it possible
for businesses to have bolder visions for the future.
Close to half of business leaders are planning to reach their
digital transformation goals with SaaS transformation.– Net
Solutions’ Digital Transformation 2020 Survey
2. Being a utility-based service, cloud computing helps businesses navigate
their digital transformation through on-demand compute, storage, asset-light, and
network resource provisioning. Although the cloud has turned out to be the
foundation of a successful digital enterprise, only a few organizations have been
able to optimize this powerful tool — less than one-third of businesses have a
documented cloud strategy.
What is Cloud Computing?
Cloud computing has established itself as the new normal for the current business
environment. It is one of the important innovations in the digital business
landscape; however, it is often misunderstood and underutilized.
More than $1.3 trillion in IT spending will be affected by the
shift to the cloud by 2022.
What exactly is the cloud? Who owns the cloud? How did the cloud start? These
are some common questions around the cloud that you have probably heard. So
what is cloud computing?
3. Cloud Computing Definition
Simply put, cloud computing is the on-demand delivery of IT-enabled capabilities,
using digital technology trends, over the Internet to offer business agility,
innovation, and growth. Cloud computing works on the pay-as-you-go pricing
model, renting instead of buying physical data centers, which helps lower an
organization’s operating cost.
Cloud Computing History
Cloud computing is not a modern technology. It has continued to evolve since the
early 1950s. In 1955, John McCarthy created a time-sharing concept, enabling a
group of users to use an expensive mainframe simultaneously. McCarthy’s theory
of mainframe timesharing is said to have had a significant impact on the
development of the internet.
With the evolution of technology, the concept of cloud computing took a giant leap
in the mid-1960s, when an American computer scientist Joseph Carl Robnett
Licklider described a theory of interconnected computing systems. This idea gave
birth to the predecessor of the internet: ARPANET (Advanced Research Projects
Agency Network).
Licklider’s contribution is considered to be the most valuable in the creation of
cloud computation; thus, he is believed to be the father of cloud computing.
4. From the 1970s to the 1990s, cloud evolved at break-neck speed because of
advancements in technology. In 1972, IBM released VM (Virtual Machine)
operating system, exhibiting the behavior of dedicated hardware, giving users the
same experience on a virtual machine. In the 1990s, telecommunications
companies started offering “Virtualized” Private Networks (VPNs) as rentable
services.
5. Professor Ramnath Chellapa of Emory University, in the year 1997, defined cloud
computing as:
As businesses started gaining a better understanding of the term cloud, it gained
popularity, and in 1999, Salesforce emerged as an ideal example of successful cloud
computing adoption.
However, the term cloud computing became extremely popular in 2006 when
Amazon released its Elastic Compute Cloud product.
6. Benefits of Cloud Computing
The rate at which data is exploding has pushed the digital businesses to embrace
cloud computing as the platform for innovation. Businesses across all the industries
are leveraging cloud solutions for various use cases, like digital security, disaster
recovery, big data analytics, and data backup.
37.3% of organizations believe ‘digital security’ is the biggest
challenge that they face on the road to digital transformation.–
Net Solutions’ Digital Transformation 2020 Survey
Today, cloud solutions help businesses navigate the challenges of the digital era,
enabling them to respond to a complex and fast-paced business landscape quickly.
Adopting the cloud allows businesses to run more effectively, serve customers
better, and boost their revenue: companies that invest in cloud, big data, and
mobility see a 53% faster revenue growth than their competitors.
Apart from helping businesses transform, differentiate, and gain a competitive
advantage, the benefits of cloud computing are:
Cost Optimization
Scalability
Security
Efficiency
Automatic Upgrades
Disaster Recovery
Mobility
7. Types of Cloud Deployment:
Public vs Private vs Hybrid
Cloud
A single type of cloud computing is not fit for every business requirement. There
are different cloud deployment models and services, which have evolved with time
to offer the right solution for every disparate business needs. Thus, before going
into the process of cloud migration, it is essential to determine the types of cloud
deployment — Public Cloud, Private Cloud, and Hybrid Cloud.
8. 1. Public Cloud
Public clouds are operated and owned by third-party providers. In the case of a
public cloud, the services offered by cloud providers are over a network that is open
for public use, implying that an organization shares the same hardware and
9. network devices with other companies of the same cloud service provider.
Microsoft Azure is an example of a public cloud.
2. Private Cloud
A private cloud is a cloud deployment model that is exclusively used by a single
organization. In the case of a private cloud, the services and infrastructure are
maintained on a private network, which is either located physically at the
organization’s on-site data center or are hosted by third-party service providers.
3. Hybrid Cloud
The combination of private and public clouds gives rise to a hybrid cloud, allowing
the sharing of data and applications between both of them. Using a hybrid cloud
deployment model enables businesses to move applications and data between
public and private clouds, leading to an agile, secure, and flexible digital business
model.
Types of Cloud Services: IaaS
vs SaaS vs PaaS
IaaS, PaaS, and SaaS are the types of cloud services that help businesses transform
their digital experience while reducing the infrastructural costs in turn. All these
10. cloud services differ mostly in what they offer to the end-user. Each of these cloud
services has its benefits depending upon the business and functional requirements.
Here is a breakdown of the different cloud services: Iaas vs PaaS vs SaaS.
1. Software as a Service (SaaS)
SaaS/ software as a service refers to cloud based applications, hosted online by a
company that makes it available for purchase on a pay-as-you-go pricing model.
SaaS products are delivered via the Internet, and some of the common SaaS
examples are Google Doc and Dropbox.
73% of organizations state that almost all of their apps will be
SaaS-powered by 2020.
Key Reasons Businesses Should Adopt
SaaS Business Model
Adopting a SaaS Business model provides many benefits over traditional on-
premise software installations. Some of them are as follows:
Speed of Innovation
Reduced Marketing Efforts
Faster Time to Market
Reduced Churn Rates
The Anytime, Anywhere Model
11. 2. Platform as a Service (PaaS)
PaaS/ platform as a service refers to a cloud based platform service that offers a
robust framework for developers to build, test, and manage new custom
applications. Unlike SaaS, it does not provide software over the Internet; instead,
it offers the platform to businesses where the software is being built. Google App
Engine and OpenShift are common PaaS examples.
58% of those enterprises that have invested in Platform-as-
a-Service (PaaS) expect a positive ROI in less than three
months.
3. Infrastructure as a Service (IaaS)
IaaS/ infrastructure as a service refers to a cloud based infrastructure service that
offers virtual data centers to businesses, which help them build and manage their
operating systems, servers, data storage, and network infrastructure. The common
IaaS examples are Microsoft Azure and Amazon Web Services (AWS).
IaaS is the fastest-growing cloud spending service with a
five-year CAGR of 33.7%.
12. Cloud Computing Platforms:
AWS vs Azure vs Google
Cloud
The cloud computing market is flooded with a number of cloud computing
platforms; however, Amazon (AWS), Microsoft (Azure), and Google (Cloud) stand
out as three leaders, according to their market share and Gartner’s Magic Quadrant
report.
13. So, how do you decide which cloud computing platform to choose? Here is a
breakdown of the different cloud computing platforms: AWS vs Azure vs Google
Cloud
14. 1. Google Cloud Platform
As the name suggests, Google Cloud Platform is a cloud service offered by Google
to build, deploy, and scale cloud based services, applications, and websites on the
same infrastructure that Google uses for its end-user products. Big brands like
Twitter, Spotify, and Forbes use Google cloud to run their operations.
Key Advantages of Google Cloud
Platform
Google Cloud is a significant technological development and is being adopted by
large enterprises and small businesses because of the following benefits:
Higher productivity owing to quick
access to innovation
Less disruption when users adopt
new functionality
Employees can work from anywhere
Allows quick collaboration
Robust security
Fewer data stored on vulnerable
devices
Higher uptime and reliability
Flexible
15. 2. Amazon Web Services
AWS is the world’s most adopted cloud platform, working on a pay-as-you-go
model, dominating the public cloud market with a 39% share, spreading across 190
countries serving millions of customers like GE, Samsung, Coca Cola, Slack, and
Netflix offering benefits like reduced costs, more agility, and faster innovation.
Why Should You Consider Amazon Web
Services?
For the ninth year in a row, AWS is positioned at the top in the Gartner’s Magic
Quadrant for Cloud Infrastructure as a Service (IaaS) across both the axes of
measurement: Ability to Execute and Completeness of Vision. Following are a
few benefits that AWS cloud computing platform offers:
16. Enhanced Security
Cost-Effectiveness
Flexibility and Openness
Elasticity and Scalability
3. Azure Web Services
Microsoft Azure is a cloud computing platform that was released in 2010, offering
cloud computing services to build, test, deploy, manage, and scale services
applications via Microsoft-managed data centers. 80% of Azure’s customers are
from Fortune 500 companies: Apple, Fujifilm, Honeywell, and HP.
Why is Azure Web Services Right for
Digital Business?
According to Microsoft, “Azure is a growing collection of integrated cloud services
— analytics, computing, database, mobile, networking, storage, and web — for
moving faster, achieving more, and saving money.” Following are some other
benefits that Azure cloud computing platform offers:
IaaS and PaaS Capabilities
Autoscaling
Flexibility
Personalized and Timely Customer
Experiences
17. Cloud Computing Examples
Cloud computing examples surround us from all four sides: from messaging apps
to productivity apps and audio streaming services. You are probably leveraging
cloud computing at work in the form of business email or other communication
applications.
There are plenty of cloud computing use cases, ranging from productivity to data
analysis, communication, file backup, software testing, and development, and
cloud storage. Most businesses use cloud computing apps through a subscription
model, which is quite cost-effective.
Following are a few cloud computing examples and uses:
Communication: Skype,
Whatsapp, Slack
18. Productivity: Microsoft Office 365,
Gmail
Data Storage: Dropbox, Facebook,
Gmail
Business Processes: Salesforce,
Hubspot
Application Development: Amazon
Lumberyard
Big Data Analytics: Hadoop,
Cassandra, HPCC
Social Networking: MySpace,
LinkedIn, Twitter
Cloud Security
Most businesses have security concerns when it comes to the adoption of cloud
computing. Cloud security breaches constantly make news headlines.
Security concerns have led some stakeholders to limit their organizational use of
cloud services. A study by Cloud Security Alliance suggests that data security is the
top concern for 73% of companies, thereby forcing them to hold back cloud
projects.
19. Is Cloud Secure?
Cloud security breaches do happen. However, they are often framed with
ambiguous explanations. The reality is that most of the data thefts occur internally
and are performed by employees.
Gartnerpredictsthatthrough2020,95%ofcloudsecurityfailureswillbethecustomer’sfault.
20. When this is the case, what will be better to keep sensitive information safe than
the cloud platform? The cloud security services allow you to protect your data and
monitor security-related activity, thereby enabling you to increase your security
posture in the cloud, deliver more agile IT, and lower costs.
Cloud Strategy
Cloud is a buzzword, but a staggering 37% of cloud migrations fail. Big brands like
Twitter and Pinterest have experienced a cloud migration failure. Even the UK-
based bank TSB witnessed a cloud migration fiasco, forcing them to increase
interest payments to cover customer losses. So why do cloud migrations fail?
Goodtacticscansaveeventheworststrategy.Badtacticswilldestroyeventhebeststrategy.–
General George S. Patton Jr.
One of the key reasons for cloud migration failure is the business’s inability to frame
out a cloud strategy before embarking on a cloud migration journey. There are a
few necessary steps that every enterprise cloud strategy should follow.
Creating an Enterprise Cloud Strategy
Team
Analyzing Applications Thoroughly
Building A Hybrid Cloud Strategy
Roadmap
Reskilling and Upskilling
Implementation
21. Cloud Migration
Net Solutions’ Digital Transformation 2020 report highlights that organizations face
various challenges — digital security, digital vision & strategy, and organization
readiness — on their road to digital transformation. To navigate these digital
transformation challenges, businesses are turning towards cloud solutions.
However, organizations face many complications when they begin their cloud
migration journey. One of the common questions regarding cloud migration is,
“How do we even start?”
Following are the 5R’s cloud migration strategy that helps businesses embark on a
successful cloud migration journey.
Rehost
Refactor
22. Revise
Rebuild
Replace
Conclusion
In today’s Digital Darwinian world, the break-neck speed at which technology is
transforming has put tremendous pressure on enterprise IT infrastructures to
adapt and deliver quickly, thereby drawing a line between digital predators and
digital prey.
The future of cloud computing is rapidly entering the phygital world. It enables
businesses to leverage innovative ways to grow and achieve their goals. And
organizations that restrict themselves in embracing it, may experience dire
consequences of Digital Darwinism — evolve or die.
Source - https://www.netsolutions.com/insights/what-is-cloud-computing/