Cloud Computing Basics: What You Need to Know

April 2, 2025 • By Goran Dermanovic
Cloud Computing Basics: What You Need to Know

Cloud Computing Basics: What You Need to Know

Cloud computing has revolutionized how businesses operate, offering unprecedented flexibility, scalability, and cost-efficiency. This post explores the fundamentals of cloud computing and why it's become essential for modern businesses.

What is Cloud Computing?

Cloud computing is the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the internet ("the cloud") to offer faster innovation, flexible resources, and economies of scale.

Instead of owning and maintaining physical data centers and servers, organizations can access technology services on an as-needed basis from a cloud provider.

Types of Cloud Services

Infrastructure as a Service (IaaS)

IaaS provides fundamental computing resources such as virtual machines, storage, and networks. Examples include Amazon EC2, Microsoft Azure VMs, and Google Compute Engine.

Platform as a Service (PaaS)

PaaS provides a platform allowing customers to develop, run, and manage applications without dealing with the complexity of building and maintaining the infrastructure. Examples include AWS Elastic Beanstalk, Google App Engine, and Microsoft Azure App Services.

Software as a Service (SaaS)

SaaS delivers software applications over the internet, on a subscription basis. Examples include Microsoft 365, Google Workspace, and Salesforce.

Deployment Models

Public Cloud

Services are delivered over the public internet and shared across organizations. Examples include AWS, Microsoft Azure, and Google Cloud Platform.

Private Cloud

Cloud infrastructure is operated solely for a single organization. It can be managed internally or by a third party and can be hosted on-premises or externally.

Hybrid Cloud

A combination of public and private clouds, bound together by technology that allows data and applications to be shared between them.

Multi-Cloud

Using services from multiple cloud providers to leverage the best capabilities of each provider or to avoid vendor lock-in.

Benefits of Cloud Computing

Cost Efficiency

Cloud computing eliminates the capital expense of buying hardware and software and setting up and running on-site data centers.

Scalability

Cloud services can scale up or down based on demand, providing businesses with flexibility as their needs change.

Performance

The biggest cloud computing services run on a worldwide network of secure data centers, which are regularly upgraded to the latest generation of fast and efficient computing hardware.

Reliability

Cloud computing makes data backup, disaster recovery, and business continuity easier and less expensive because data can be mirrored at multiple redundant sites on the cloud provider's network.

Security

Many cloud providers offer a set of policies, technologies, and controls that strengthen your security posture overall, helping protect your data, apps, and infrastructure from potential threats.

Challenges and Considerations

Security and Privacy

Storing data on cloud providers' servers raises concerns about data security and privacy. Organizations must ensure their cloud provider has robust security measures in place.

Compliance

Depending on your industry, you may be subject to regulations that limit where and how data can be stored. Ensure your cloud solution complies with relevant regulations.

Cost Management

While cloud computing can save money, improper management of resources can lead to unexpected costs. Implement proper monitoring and optimization strategies.

Vendor Lock-in

Becoming too dependent on a single cloud provider can make it difficult and expensive to switch providers later. Consider multi-cloud strategies to mitigate this risk.

Conclusion

Cloud computing offers tremendous benefits for businesses of all sizes, from startups to enterprises. By understanding the basics of cloud computing and carefully planning your cloud strategy, you can leverage these benefits while minimizing potential challenges.

At Derman Consulting, we help organizations develop and implement effective cloud strategies tailored to their specific needs and goals. Whether you're just starting your cloud journey or looking to optimize your existing cloud infrastructure, we're here to help.

Goran Dermanovic
About Goran Dermanovic

Proud father of two, born in Zagreb and now based in Berlin. With over two decades in technology and leadership, I bring a critical lens to the intersections of theology, philosophy, politics, and tech. I previously pursued doctoral research at the University of Bonn.