When we talk about “the cloud” we are basically using a synonym for the internet. In simple terms it is the ability to reach files quickly when they are not on your personal computer but on a server somewhere in the world. An example: we used to rent films on CD to watch at home; today films live in the cloud and we connect to them directly over our internet connections (Netflix, Apple TV+, HBO and other streaming platforms make the point).
The uses for the cloud are unlimited: games, online music, films and more. You can essentially use the cloud with any kind of online service.
But we understand those uses from the end user's point of view. Why should companies use the cloud?
Around ten years ago internet connections were very expensive, did not offer acceptable quality of service and came with only small amounts of bandwidth. Those characteristics made deploying online infrastructure and software services in the cloud unviable for companies.
Every one of those obstacles has now been overcome. Operating in the cloud is cost-efficient and it supports companies' digital transformation in the following ways:
It reduces the cost of acquiring software to optimise processes.
It improves access to new technologies at low cost.
It reduces capital expenditure on infrastructure and makes maintenance more efficient.
It eliminates technological obsolescence.
It reduces personnel costs for technology profiles.
How does a small or medium-sized company use the cloud?
There are many cloud service providers. The most famous is Amazon Web Services (AWS), which started the concept; choosing a provider is nevertheless an independent decision that has to weigh price and how easy the technology is to use.
The cloud provides different kinds of service:
IaaS (Infrastructure as a Service): the raw computing power you get from the cloud — essentially the hardware. In simple terms it is like having a computer or server on the internet where the cloud service provider controls only its administration, not its content. Amazon's EC2 and Google Compute Engine are examples of IaaS.
PaaS (Platform as a Service): here the cloud provider has more control, because it supplies not only the hardware but also the basic tools a programmer needs to develop software. Amazon AWS and Google App Engine are examples of PaaS services.
SaaS (Software as a Service): this kind of service offers an entire end-to-end software application. Google Drive, Gmail and Microsoft Office are examples of SaaS services.
Embarking on a cloud initiative is not difficult. All it takes is decisiveness and vision; the business advantages of using it have a significant impact on cost and an exponential one on the company's efficiency in reaching its objectives. It is hard today to complete a digital transformation strategy without using the cloud.
