Cloud computing is the process of storing, accessing and managing data and applications over the Internet. It allows organizations to replace upfront IT investments in physical servers and data centers with scalable, on-demand computing resources. This approach enables organizations to scale resources up or down to meet fluctuating business demand and reduce capital costs.
There are three primary types of cloud deployment models: software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS). SaaS offers application delivery, hosting the software, its data and the IT tools needed to manage it over the Internet. PaaS hosts application development, offering the IT environment and services needed to develop, build, test and deploy applications. IaaS offers virtualized compute models that resemble physical servers, providing the underlying infrastructure for applications and their data storage.
Cloud computing enables innovation in many ways. In retail, banking and customer-facing industries, generative AI (GenAI) virtual agents can help improve customer response times and free teams to focus on higher-value tasks. In manufacturing and supply chains, sensors connected to the Internet of Things (IoT) transmit telemetry data to the cloud. Organizations can track and analyze this data, turning it into insights to improve operations and logistics. Cloud integrations require collaboration and communication between IT, operations and security teams. Encryption is critical to secure data at rest, in transit and in use. And clear processes that define ownership of data between the customer and the cloud service provider help prevent data breaches.