In simple terms, cloud technology is a means of storing and accessing programs and data through the internet, rather than using your own computer hard drives.
Cloud technology might at first seem like some type of magic on the same trajectory as The Force from Star Wars. In actuality, the true capacity of cloud technology isn’t far from magic. Considering that the cloud computing industry was valued at $371.4 billion in 2020 and is expected to more than double to a project amount of $832.1 billion by 2025, whatever this industry is, it's certainly worth the investment.
Cloud computing encompasses technologies that allow individuals or businesses access to certain data or services without the need for physical infrastructure.
There are a few popular cloud technology categories such as infrastructure as a service (IaaS); communication as a service (CaaS); and software as a service (SaaS).
Let's break down each one of the categories.
IaaS
IaaS is one of the root forms of cloud computing. This is because IaaS provides network infrastructure like servers and storage. Businesses like yours can avoid investing in on-site resources and outsource this need to an IaaS provider.
Amazon Web Services (AWS) is likely the most pervasive example of IaaS. While it’s likely more people are familiar with the online shopping website, AWS is a cloud platform hosting data centers globally that powers much of the internet.
Jeff Bezos compares AWS to a utility company. In the early 1900s, a factory needing electricity would need to build its own power plant. Of course, this was until electric companies made it possible for others to buy electricity as a public utility.
Similarly, AWS serves as a storage space for more than a third of the cloud market. For small and medium-sized businesses (SMBs) especially, this can be a practical way of reducing startup costs.