Cloud Computing And Why It Matters In Business

Establishing a robust infrastructure is the cornerstone of cloud computing. It often accounts for a third of the total amount spent on IT in a majority of businesses. Instead of taking computer workloads through the internal IT team, this traditional approach seemed to be long gone. Modern industries that embrace digital transformation with open arms gradually transfer systems into the cloud. Whether the information is on a private or public cloud, it offers increased security and safety against cyber threats. The result of increased cloud usage opens doors for cloud computing services provided by vendors and enterprises.

What is Cloud Computing?

Cloud delivery accounts for streamlining the delivery of services through the internet. When data gets stored in cloud software, servers in a comprehensive database secure it. IT professionals prefer data storage in the cloud instead of proprietary hard drives and local storage devices. Cloud-storage is more convenient, allowing users to store and access files to a remote database. Almost everyone in the world has access to the internet. Thus, you can run data and software through the cloud as long as you have an electronic device and internet connectivity.

Businesses are slowly adopting cloud computing into their existing framework for several reasons. Cloud offers convenience, speed, security, and cost-savings. Not only can it provide efficiency but it also increases the overall productivity of businesses.

How Does Cloud Computing Work?

As previously mentioned, cloud computing is used in both public and private clouds. Both public and private cloud services are networks that supply hosted services. Storing data in the public cloud means that you can acquire its services for free. In contrast, private cloud services require a fee that can only be accessed by many people.

In general, cloud computing features vast services, including the following:

  • Consumer Services (cloud back-up for data on smartphones, desktop, and laptops)
  • Hosted services to run several applications in the cloud (often used by companies)

A growing number of applications and software utilize cloud computing to offer innovative solutions and quality services. Extensive video streaming services like Hulu, Netflix, Disney+, and Amazon slowly transition to a subscription model. Through cloud computing, they can offer their applications as services instead of a standalone product. It may increase the costs for the users, but these often make up for the constant improvements made.

Types of Cloud Computing

The “as-a-service” models are typical of the second wave of the Web 2.0, built on top of cloud computing. Indeed, these models’ basic premise is to offer a solution to the final customer without having to host it on-premise, with complex implementations and large overhead. Yet while PaaS and IaaS are skewed toward development teams. SaaS has wider applications toward end-users, also in non-technical departments.

Cloud computing is composed of the following services:

Software-as-a-service (SaaS)

SaaS refers to the license to apply the services offered by software applications. An example of this is Microsoft 365, or the entirety of Microsoft applications in a single cloud. There are different payment models for SaaS cloud computing services, depending on the product. Often, it is large enterprises that obtain these licenses.

Infrastructure-as-a-service (IaaS)

IaaS yields the delivery of products and services through servers. Products, including operating systems and data, get stored through IP-based connectivity as part of an on-demand service. IaaS uses programs like IBM Cloud and Microsoft Azure. Instead of purchasing software, users can procure them as an on-demand service.

Platform-as-a-service (PaaS)

PaaS is often used interchangeably with SaaS. The main difference between the two is that the platform for establishing software gets delivered through the internet. Popular platforms that offer PaaS include and Heroku.

Benefits of Cloud Computing to Digital Entrepreneurs

Cloud computing provides a plethora of benefits to different sectors of businesses. From the ability to manage software from any device on a native app or web browsers, users can handle data seamlessly. It is the foundation of a reliable IT infrastructure that aims to support business growth.

To better understand why more businesses are moving to the cloud, here are the benefits of cloud computing:


Digital entrepreneurs and businesses that invest in cloud computing can take advantage of its efficiency and flexibility. Cloud-based services let companies use unlimited bandwidth and storage space, promoting scalability. Scalability means that companies can scale up and down, depending on their capacities and goals. Scalability in business plays a fundamental role in coping when traffic increases or fluctuates.

Simply put, playing your data in the cloud eliminates the need for the installation of programs on-site. On top of that, enterprises can update their software remotely, without the entire IT workforce present. Not only does it promote workforce flexibility but also convenience. Several uses can access applications and data anywhere and any time, as long as they have internet connectivity.


A robust infrastructure supported by cloud computing means that businesses can rely on the cloud in case of issues that arise. Cloud-based services offer reliable disaster recovery and comprehensive back-up in the event of a system breach, malfunction, or cyber threat. It gives digital entrepreneurs peace of mind that they can recover data within a few hours. Cloud computing mirrors data across servers from the beginning to instantly provide back-up solutions, minimizing downtime.


One of the most valuable benefits of cloud computing is getting a lot of bang for your buck. It reduces IT operational costs with remote servers used for storage. Instead of gathering an in-house team to install applications and situate storage segments, you can simply leverage the cloud. From the overhead expenses, management efforts, and constant software upgrades, cloud computing does it all at a fraction of the price. Most cloud-based services are cost-effective and on a pay-per-use basis. This model means that businesses can obtain only the services they need at a given time.

Initiate Steadfast Collaboration

The cloud environment aims to initiate true collaboration across business sectors. Different departments can access, modify, and manage the same files without having to be in one room. Such a transparent form of collaboration eliminates the communication and geographical barriers since both parties can work with data as long as they have internet. With a true collaboration across teams, timeframes and scheduling is a much smaller issue.

Accelerate Business Growth

Cloud computing is applied to meet the ever-changing market demands and technological advancements. It is integrated into an existing framework to accelerate business growth. With increased storage space and bandwidth, webpages can handle considerable traction and anticipate traffic. The seamless deployment of the cloud makes it easier for digital entrepreneurs to grow. They can match their business operations with the growing IT requirements while maintaining optimum performance.

Automatic Software Updates and Integration

Cloud-based services feature regular software updates to meet the ever-changing IT demands. Constant monitoring is performed across cloud servers to make sure that systems are secured and safe. Instead of relying on your internal IT team, you can delegate the task to a cloud computing specialist. They are also the ones tasked to integrate software across cloud servers. Although it can occur automatically, professionals can modify software applications suitable for their business objectives.


Businesses are now taking the initiative of maintaining sustainability. One way to do so is through cloud computing. Cloud computing does not require much hardware equipment in the office. Cloud-based services reduce as much carbon footprint as possible, considering that they are remote. Data, applications, and servers can be stored and run in a virtual environment, meaning less energy consumption.

Connected Business Frameworks

One of the first mentions of customer lifetime value was in the 1988 book Database Marketing: Strategy and Implementation written by Robert Shaw and Merlin Stone. Customer lifetime value (CLV) represents the value of a customer to a company over a period of time. It represents a critical business metric, especially for SaaS or recurring revenue-based businesses.
AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.
Machine Learning Ops (MLOps) describes a suite of best practices that successfully help a business run artificial intelligence. It consists of the skills, workflows, and processes to create, run, and maintain machine learning models to help various operational processes within organizations.
The business intelligence models have transitioned to continuous intelligence, where dynamic technology infrastructure is coupled with continuous deployment and delivery to provide continuous intelligence. In short, the software offered in the cloud will integrate with the company’s data, leveraging on AI/ML to provide answers in real-time to current issues the organization might be experiencing.
The business intelligence models have transitioned to continuous intelligence, where dynamic technology infrastructure is coupled with continuous deployment and delivery to provide continuous intelligence. In short, the software offered in the cloud will integrate with the company’s data, leveraging on AI/ML to provide answers in real-time to current issues the organization might be experiencing.
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problems and not the technical solution of its founders.
Technological modeling is a discipline to provide the basis for companies to sustain innovation, thus developing incremental products. While also looking at breakthrough innovative products that can pave the way for long-term success. In a sort of Barbell Strategy, technological modeling suggests having a two-sided approach, on the one hand, to keep sustaining continuous innovation as a core part of the business model. On the other hand, it places bets on future developments that have the potential to break through and take a leap forward.

Read Next: Cloud Business Models, IaaS, PaaS, SaaS, AI Economy, Business Model, Enterprise AI Business Model.

Main Guides:

Scroll to Top