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What is Cloud Computing?

What is Cloud Computing?

Cloud computing (CC) is a paradigm that allows on-demand network access to shared computing resources. This model includes managing, storing, and processing data via the internet. Cloud infrastructure involves the hardware and software components required for properly implementing a cloud computing model. CC can also be thought of as utility computing or on-demand computing.

Cloud computing is more than just servers and storage. It is a technological superstructure that solves multiple technical tasks. While working on application developments, engineers sometimes spend more time handling the incoming data than on the applications’ quality. By using the cloud, engineers can deploy applications faster and focus more on their quality than technical issues.

Cloud benefits for business

Choosing the cloud over on-premise infrastructure is not just a trend. Thanks to the cloud, businesses can reduce their tech footprint as well as hours spent on managing data centers. It also allows employees to work more efficiently from any location - office, home or coffee shop. Cloud has many substantial advantages that can scale your business and increase your income. Among these benefits are the following:

Cost-efficiency

Moving to the cloud helps to reduce the cost of IT systems management. Rather than purchasing equipment and systems for your business, you can use the resources of cloud service providers. By choosing the cloud, you sign a contract that covers points like system upgrades, new software, and new server hardware, which are already included in the price. It means you can decrease operational costs and infrastructure investment. Also, cloud usage allows you to reduce energy consumption costs. By choosing the "pay-as-you-go" model, you also prevail, as you don't overpay for the time cloud isn't used. According to statistics, companies that invest in big data, cloud, mobility, and security enjoy up to 53% faster revenue growth than their competitors.

Scalability & Flexibility

Cloud services release you from expensive upgrades of your on-premise equipment and allow you to be more flexible toward your requirements. A cloud environment opens new possibilities for your business and accelerates your team or employees' access to the required resources. Non-location dependent and less time needed to get the job done. As a result, your business agility increases instantly.

Security

Some companies are reluctant to adopt cloud services because of their uncertainty in security matters. But in fact, cloud security monitoring is way more efficient than on-premise systems. Because of data encryption, it is harder for hackers or any other unauthorized user to access it. In addition, cloud computing is also favored for its backup solutions that allow creating of duplicates and restoring data faster than on-premise. RapidScale claims that 94% of businesses improved security after switching to the cloud, and 91% said the cloud makes it easier to meet government compliance requirements.

Mobility

Cloud provides mobile access to corporate data through smart devices enabling all team members to remain on the same page at any location. Cloud technology allows companies to be flexible, and non-location dependency gives workers a better work-life balance. Therefore, it's not surprising that organizations with employee satisfaction listed as a priority are up to 24% more likely to expand cloud capabilities.

Cost-efficiency

Moving to the cloud helps to reduce the cost of IT systems management. Rather than purchasing equipment and systems for your business, you can use the resources of cloud service providers. By choosing the cloud, you sign a contract that covers points like system upgrades, new software, and new server hardware, which are already included in the price. It means you can decrease operational costs and infrastructure investment. Also, cloud usage allows you to reduce energy consumption costs. By choosing the "pay-as-you-go" model, you also prevail, as you don't overpay for the time cloud isn't used. According to statistics, companies that invest in big data, cloud, mobility, and security enjoy up to 53% faster revenue growth than their competitors.

Scalability & Flexibility

Cloud services release you from expensive upgrades of your on-premise equipment and allow you to be more flexible toward your requirements. A cloud environment opens new possibilities for your business and accelerates your team or employees' access to the required resources. Non-location dependent and less time needed to get the job done. As a result, your business agility increases instantly.

Security

Some companies are reluctant to adopt cloud services because of their uncertainty in security matters. But in fact, cloud security monitoring is way more efficient than on-premise systems. Because of data encryption, it is harder for hackers or any other unauthorized user to access it. In addition, cloud computing is also favored for its backup solutions that allow creating of duplicates and restoring data faster than on-premise. RapidScale claims that 94% of businesses improved security after switching to the cloud, and 91% said the cloud makes it easier to meet government compliance requirements.

Mobility

Cloud provides mobile access to corporate data through smart devices enabling all team members to remain on the same page at any location. Cloud technology allows companies to be flexible, and non-location dependency gives workers a better work-life balance. Therefore, it's not surprising that organizations with employee satisfaction listed as a priority are up to 24% more likely to expand cloud capabilities.

Choosing the suitable model

Choosing the cloud over on-premise gives businesses many new possibilities and resolves the main administrative, maintenance and testing parts. Yet, everything depends on the type of cloud you select. There are mainly three ways of using the cloud:

Software-as-a-Service (SaaS). It means services are provided via a cloud server. Software services include accounting, customer relationship management, enterprise resource planning, invoicing, human resource management, content management, and service desk management.

Platform-as-a-Service (PaaS). It is a form of cloud computing that provides a platform (runtime) and environment to allow developers to build applications. A cloud service provider offers a complete application, interface, database development, storage, and testing platform.

Infrastructure-as-a-Service (IaaS). In this model, a cloud provider supplies a range of services to accompany infrastructure components, detailed billing, monitoring, log access, security, load balancing, and clustering, as well as storage resiliency, such as backup, replication, and recovery.

A deployment model is the second aspect you should pay attention to before migrating to the cloud. In the cloud for banking ecosystems, there are three primary types of cloud computing services that institutes make the selection from:

▪ Private clouds. This cloud type is considered to be the most secure. Cloud operates for a specific company, can be managed by the same company or a third party, and can work on and off premises.

▪ Public clouds. A company or the general public can use this cloud infrastructure. It is owned and managed by a cloud service company.

▪ Hybrid clouds. A hybrid cloud combines two or more clouds (private or public) that remain unique entities but are linked to providing services.

How does the cloud migration process work?

Before making your final decision on the cloud, you need to understand an important fact – cloud migration is a severe shift for your business and a complex process. To do it properly, you need to consider a few things:

#1 Define your business goals.

What value do you wish to achieve by moving to the cloud? Migration is not an ordinary task. It is a complex process based on business results and specific goals companies want to achieve. A key element of your migration strategy is to define the number of applications that will be moved, the type of environment, and what the infrastructure will look like. Some companies are using multiple applications on different servers and different networks. Migration of the dependent app may cause a delay in the process and affect the work of others.

#2 Estimate performance

Proper management is the key to success in any business. Establishing key performance indicators allows you to evaluate the process and its results to see whether it is as beneficial as it seems — key points to cover: availability, maintenance costs, scalability, operational load, and access speed.

#3 Choose automation tools

Automated management tools are essential for performing a smooth migration. They help speed up the moving process, deliver high quality and eliminate risks. Cloud providers have their automation tools – AWS Server Migration Service, Azure Migrate, and Migrate for Compute Engine. There are also many universal solutions from software vendors.

#4 Select migration strategy

Since you are aware of the goals you wish to achieve along with migration, there are mainly six strategies used for migration – Rehost, Replatform, Refactor, Repurchase, Retire, and Retain.

Challenges of cloud adoption

Although clouds have a significant number of benefits compared to on-premise, some obstacles still stand between businesses and their cloud adoption initiatives. Here we’ve gathered the most prevalent challenges enterprises might face while choosing cloud migration.

▪ Legacy applications

Not every app can be easily migrated. The company should seriously weigh all pros and cons. Which do they keep, and which are to be wrecked and rebuilt?

▪ Applications upgrade

While migrating companies might face the question, what are the options for rebuilding applications, so they perform optimally in the cloud?

▪ The complexity of the migration process

Migration is not an easy task to do. Assess your efforts and expenses properly, as their underestimation may bring you unpleasant results.

▪ Key dependencies

Wrong-resolved infrastructure and application dependencies might also be a downsize, leading to unwanted risks and expanded time and costs.

cloud picture

Sum up

Cloud is a technology of the future. It opens multiple possibilities for businesses and leads them toward digital transformation. If you are ready to open these possibilities for your product – reach Proffiz anytime. With great expertise in cloud services, our tech experts guarantee high-quality results that bring value. Meet the future with scalable, secure, and user-friendly solutions.