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.
Cited Across coldai.org3 pages mention Cloud Computing
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Referenced By15 terms mention Cloud Computing
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More in Cloud Computing
Hypervisor
InfrastructureSoftware that creates and manages virtual machines, allowing multiple operating systems to share a single hardware host.
Block Storage
InfrastructureA data storage technology that manages data as individual blocks, each acting as an independent hard drive.
Monolithic Architecture
Architecture PatternsA software architecture where all components are tightly integrated into a single deployable unit.
Cloud-Native Database
Strategy & EconomicsA database designed from the ground up to operate in cloud environments with automatic scaling and high availability.
Cloud Repatriation
Strategy & EconomicsThe process of moving workloads back from public cloud environments to on-premises or private cloud infrastructure.
Cloud Governance
Strategy & EconomicsThe policies, procedures, and tools for managing cloud resource usage, security, compliance, and costs.
Microservices
Architecture PatternsAn architectural style structuring an application as a collection of loosely coupled, independently deployable services.
Auto-Scaling
InfrastructureAutomatically adjusting compute resources based on current demand to maintain performance and optimise costs.