Cloud computing is the delivery of computing services, such as storage, processing, and networking, over the internet. Rather than relying on local servers or hardware, businesses can access software, databases, and resources remotely through cloud platforms. Cloud computing provides scalability, flexibility, and cost efficiency for businesses of all sizes.
Cloud services enable businesses to run applications, store data, and perform tasks without the need for on-site infrastructure. This model has become a critical tool for businesses seeking to enhance productivity and reduce IT costs.
Key Takeaways
- Cloud computing delivers computing services over the internet, without the need for local infrastructure.
- It offers scalability, flexibility, and cost efficiency to businesses.
- Cloud services enable businesses to access applications and store data remotely.
- Adopting cloud computing enhances productivity and reduces IT expenses.

How Cloud Computing Works
- Service Providers: Cloud services are typically provided by companies like Amazon Web Services (AWS), Microsoft Azure, or Google Cloud.
- Storage and Processing: Cloud providers host data and process tasks on remote servers.
- Access and Usage: Businesses access cloud services through the internet, paying only for the resources they use.
For example, Dropbox offers cloud storage solutions that allow users to store, share, and access files from any device with internet access.
Benefits of Cloud Computing
- Cost Efficiency: Pay-per-use models mean businesses only pay for what they use, avoiding expensive upfront investments.
- Scalability: Businesses can quickly scale up or down based on demand.
- Remote Access: Cloud computing allows employees to access business applications from anywhere.
Challenges of Cloud Computing
- Security Risks: Storing data online increases the risk of cyberattacks and breaches.
- Dependence on Internet: Cloud services require a reliable internet connection for access.
- Vendor Lock-In: Moving services or data between cloud providers can be complex and costly.
Example of Cloud Computing in Action
Netflix uses cloud computing to stream content to millions of users worldwide. By utilizing cloud services, Netflix can deliver high-quality video on-demand, scale its infrastructure during high traffic periods, and store vast amounts of data remotely.