Introduction to Cloud Computing for Businesses

Cloud services have revolutionized how many companies operate, saving precious time and resources while enhancing technical capabilities. By using cloud services, companies can access extremely powerful computing resources in real time without paying for the hardware directly or setting up their own infrastructure, which can be complex and time-consuming. Instead, many businesses are paying for cloud services to gain instant access to these capabilities.

If you’re not already on the cloud, it’s time to learn more about it and see if switching is right for you.

What Is Cloud Computing?

It has been well over a decade since Microsoft blitzed the world with the “It’s in the Cloud” ad campaign. This advertisement introduced people to the concept of cloud computing. Even after so many years, the idea still seems a bit abstract. This is partly because the tech industry often emphasizes the benefits of cloud services without adequately explaining what they are and how they work. We’re eager to get back to the basics and demystify what cloud computing is and how it operates.

What is the Cloud?

The cloud is a network of professionally maintained server farms (a warehouse full of high-powered computers) that you can access with an Internet connection. These are also referred to as data centers.

When you save data ‘in the cloud,’ it actually means that your data is stored on these remote servers rather than physically on your device’s hard drive. If you use cloud computing, most of the heavy lifting—processing, storage, and computations—also happens in these remote data centers. The cloud computers do the work and then send results to your device via the Internet.

Who Maintains the Servers?

Cloud servers are managed by cloud service providers (CSPs). For instance, if you use Microsoft’s cloud services—like Teams, SharePoint, or Outlook—then all of the actual data processing and storage takes place in their secure data centers.

As a business, you can pay for a subscription with Microsoft to access these resources. This subscription relationship is usually described as “cloud services.” Typically, you can pay for different tiers of cloud service access, which may vary in terms of:

• The number of users supported under a single agreement.
• Storage capacity.
• Service speed and performance.
• Technical support access.

The flexibility of cloud solutions allow businesses to select plans that align with their size, budget, and other requirements.

Cloud vs. Traditional Business Infrastructure

The improved flexibility and scalability of cloud services are most apparent when compared to traditional business infrastructure.

If you need servers for your business but don’t use the cloud, this is what it looks like.

Traditional Business Infrastructure

Deploying and maintaining your own servers is a significant and ongoing investment:

• Hardware Costs: First, you need the hardware. Servers are considerably more powerful and expensive than traditional PCs. Moreover, they require better equipment to physically support them.
• High-Speed Internet: If you need customers to access your online services, you will also need high-end Internet infrastructure, which often requires fiber-optic connections, and that raises costs.
• Energy Consumption: Then you’ll have to consider the electricity needed to run all of this equipment; it’s often more expensive than you might imagine. As your servers get more powerful, they also generate more heat. That means they need additional cooling, raising upfront costs and power consumption.
• Maintenance and Staffing: We’re still not done because someone has to take care of everything. Dedicated IT staff are critical in maintaining the servers, troubleshooting issues, and ensuring consistent uptime—especially in the case of an emergency. Recruiting, training, and ongoing salaries add to these expenses.

Now, most businesses don’t need servers as powerful as the equipment on a Microsoft server farm, but the costs and complexities of managing traditional infrastructure yourself can spiral quickly.

Cloud Infrastructure

Conversely, you can opt to use a cloud service. Select a service tier that suits your business, pay a monthly (or annual) fee, and you’re pretty much set. You’ll only need basic equipment in the office that can utilize the cloud resources (like a PC) and an Internet connection without having to invest in fiber optics, advanced cooling, and all the rest. Some businesses use hybrid cloud setups to combine the best of both worlds.

On top of that, your customers can use their own devices and internet connections to access the cloud resources you provide.

In the majority of cases, you will find that cloud services handle the heavy lifting—saving you a lot of money, time, and resources—while providing scalability and support. The simplicity of cloud services is why the industry is so successful.

Key Benefits for Businesses in the Cloud

There are many more benefits to consider.

• Professional Support: Cloud services usually come with expert maintenance and technical assistance. If you have questions or encounter problems, the service provides access to technology professionals.
• Regular Updates: This covers software, but it also includes hardware. You can trust that your cloud services always run on modern equipment and resources, so you don’t have to worry about infrastructure upgrades or the associated costs.
• Compliance: You can find cloud providers who guarantee their systems’ compliance, and this is true across many industries.

In short, cloud services can provide enhanced flexibility, performance, and efficiency—all while being cost-efficient.

Common Cloud Services

What are cloud services?

In general, we can divide all cloud services into three categories: software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS).

1. Software as a Service (SaaS)

SaaS makes for a good starting point, and you are likely already using it. SaaS allows you to access software hosted in the cloud. One of the most popular examples is Microsoft Office 365. Once upon a time, you had to buy physical discs and install Office on each device before using it.

Today, Office 365 runs on the cloud. You pay a subscription fee and access platforms such as Excel, Word, etc., from devices with an Internet connection. All of your files are saved in the cloud, which allows you to access, edit, and use them anywhere in the world, even when you switch from one device to another.

It’s a streamlined service; any software suite can function this way. You can look for a cloud-based version of whatever software you utilize. This way, you’ll get cloud data maintenance, convenience, and reliability with the software.

2. Platform as a Service (PaaS)

Moving on to PaaS, it builds on the SaaS concept. The real difference here is scope:

• SaaS typically refers to individual software applications accessed via the cloud.
• PaaS, on the other hand, provides an entire cloud platform or development environment in the cloud, including tools, libraries, and frameworks that developers can use to build, test, and deploy custom applications.

For instance, Google App Engine is a PaaS offering. It provides a scalable platform for developers to build and host applications without worrying about the underlying infrastructure. Developers use this PaaS to write code, integrate with APIs, and manage applications all within the PaaS ecosystem.

Many PaaS services give you access to customized software that works specifically for your business without having to manage complex infrastructure.

3. Infrastructure as a Service (IaaS)

Lastly, we have IaaS. With IaaS, you gain virtual access to the hardware and resource capabilities—such as servers, storage, and networking infrastructure—via the Internet. This cloud computing model provides businesses with powerful hardware and resources without physically owning or maintaining this equipment.

In general, IaaS appeals to businesses that provide robust online services to their customer base. For instance, if you create an online store and want to support millions of users, you might consider having IaaS servers do all of the work for your business operations.

Additionally, businesses that seek enhanced security or control mechanisms can use IaaS to build and manage private cloud environments.

Common Challenges When Switching to the Cloud

Using the cloud to replace traditional infrastructure solutions is often a significant change for the better. However, change usually comes with some challenges, so here are a few to keep in mind.

• Downtime. Cloud services can experience service outages, meaning you can’t fix it yourself—there is a dependency on the provider. Similarly, if you lose your internet connection, you’ll also lose access to cloud services and data. Developing a recovery plan can help you overcome these obstacles.
• Data Privacy. Your key data will be stored off-site. Many professional providers do a great job of protecting data, but you have to vet them to ensure that’s the case. Even so, some people feel uncomfortable when they relinquish control over their data to a third party.
• Vendor Lock-In. Some cloud providers may limit compatibility with certain third-party platforms, causing integration challenges. Adequate vetting will help mitigate this problem—make sure any preferred software or applications will be compatible with a cloud service before making a commitment.

How to Choose a Cloud Service Provider

Selecting the best fit is a critical decision—consider these key criteria that can help you evaluate potential providers:

• Reliability Guarantees: Search for providers with robust uptime commitments, maintenance schedules, and upgrade cycles to ensure reliable performance.
• Support Availability: Will you get access to technical support and general customer service? Is support 24/7/365? Are there support limitations?
• Certifications: Verify whether the provider is reputable and holds any industry-specific certifications (such as HCISPP for healthcare information or CIPP for jurisdictional data privacy).
• Scalability: Ensure the cloud service provider can accommodate your growth trajectory. How easily can you scale up (or reduce) your service consumption as your business operations evolve?

Your Cloud Journey Starts Here

At IT Solutions, we recognize that every business’ cloud journey is unique. Whether you’re just beginning to explore the possibilities of cloud services or looking to optimize your existing cloud spend, we’re here to help you every step of the way.

The cloud isn’t just another technology—it’s a tool driving innovation, efficiency, and growth. Let us help you craft a cloud strategy tailored to your business. Contact us today to discuss cloud strategies and how we can help elevate your priorities.