Cloud ComputingService Models

Cloud Computing

Overview

Direct Answer

Cloud computing is the on-demand delivery of computing resources—including servers, storage, databases, networking, and applications—over the internet, with customers paying only for what they use. This model eliminates the need for organisations to purchase and maintain physical infrastructure on premises.

How It Works

Service providers operate large-scale data centres that host virtualised computing resources accessible via APIs and web interfaces. Users provision resources dynamically through self-service portals, with underlying infrastructure automatically scaled to meet demand. Billing systems track usage in real time and charge customers according to consumption patterns.

Why It Matters

Organisations reduce capital expenditure on hardware, shift costs to operational budgets, and gain flexibility to scale resources up or down rapidly. This enables faster deployment of applications, reduces time-to-market, and allows teams to focus on business logic rather than infrastructure management.

Common Applications

Web application hosting, data analytics and big data processing, disaster recovery and business continuity, machine learning model training, and software-as-a-service platforms. Industries including finance, healthcare, retail, and media utilise cloud services for production workloads and development environments.

Key Considerations

Organisations must carefully assess vendor lock-in risks, data residency and compliance requirements, and network latency implications. Security responsibility is shared between provider and customer, requiring clear understanding of each party's obligations.

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