What is Cloud Computing?

Cloud computing is an on-demand access to computing resources, which include servers, networking capabilities, software, analytic tools, application development platforms, and more, over the internet based on a pay-per-use pricing model.

Reference: What Is Cloud Computing? | IBM

Is Cloud Computing a New Technology?

Cloud computing is not a brand-new technology per se. The first concept of cloud computing dates back to the early 1960s, when computer scientists like John McCarthy proposed that computing could one day be provided as a utility, similar to electricity or water. But it was not until the 1990s and early 2000s, with the rise of the internet, virtualization, and the launch of services like Amazon Web Services, that cloud computing became practical and began to see widespread adoption.

Key Characteristics of Cloud Computing

On-demand self-service: Users can instantly provision computing resources via a portal or API.
Broad network access: Cloud resources are accessible from anywhere on various devices and platforms.
Resource pooling & multi-tenancy: Multiple users share infrastructure efficiently while keeping data isolated.
Scalability and rapid elasticity: Resources can automatically scale up or down based on demand.
Flexible pricing & measured service: Pay-per-use models with resource monitoring optimize costs and efficiency.

The Three Major Cloud Service Models

IaaS (Infrastructure as a Service): Provides complete control over virtualized computing resources, allowing users to manage servers, storage, and networking with full flexibility.
PaaS (Platform as a Service): Offers a development platform where users can build and deploy applications without worrying about managing the underlying infrastructure.
SaaS (Software as a Service): Delivers ready-to-use software over the internet, typically through a web interface or API, making it the most widely adopted cloud model.

Top Real-World Applications of Cloud Computing

File Storage: Cloud storage allows users to store data remotely. Users can access their files from anywhere without needing physical storage devices.
Big Data Analytics: Cloud platforms provide tools and services to analyze large datasets. Businesses can use these insights to make data-driven decisions.
Data Backups and Archiving: Cloud services offer secure solutions for backing up data. They also help businesses archive important information for long-term storage.
Disaster Recovery: Cloud-based disaster recovery helps businesses recover quickly from unexpected events. This minimizes downtime and prevents data loss.
Software Testing and Development: Cloud environments provide scalable resources for software development. Teams can test and deploy applications faster and more efficiently.

Economic / Business Model of Cloud Computing

The economics of cloud computing is based on the pay-as-you-go model. Users only pay for the resources and services they actually use, making it cost-effective and flexible.

Pricing Strategies

Tiered Pricing: Cloud services are offered in various tiers with fixed service agreements. Example: Amazon EC2.
Per-unit Pricing: Charges are based on specific units of usage, such as RAM or data transfer. Example: GoGrid.
Subscription-based Pricing: Users pay periodic subscription fees to access software or services.