Cloud computing
Cloud computing means using computing resources operated by another company and reached over a network, usually the internet. Instead of buying and maintaining all of its own servers, a business can rent applications, storage, databases, and computing power as needed.
Everyday business tools such as Microsoft 365, Google Workspace, and many online accounting or customer-management systems are examples of cloud services. Developers can also rent the underlying technology needed to build and run custom applications from providers such as Amazon Web Services, Microsoft Azure, and Google Cloud.
Why do businesses use cloud computing?
For a small or midsize business, cloud computing can:
- reduce the need to purchase and maintain servers;
- make systems available to employees in different locations;
- allow capacity to grow or shrink as needs change; and
- provide access to technology that would be difficult to operate in-house.
Cloud services do not eliminate IT costs or responsibilities. Fees can grow as usage increases, and the business still needs to manage user access, protect its data, configure services correctly, and plan for outages or vendor changes. Moving an existing system to the cloud also does not automatically make it faster, safer, or less expensive.
The practical question is not simply whether the cloud is “better.” It is whether renting a particular service provides more value than owning and operating the equivalent technology yourself.