Cloud computing is estimated to reach $206.2 billion in market worth in 2019.

In fact, 94% of companies use cloud technology for their business.

The term “cloud computing” appears millions of times across the internet. It has become something of a standard term when discussing computing and the internet.

The increased popularity has caused many to ask questions like what is cloud computing? How does cloud computing work? How can I use cloud computing to benefit my business?

In order to get to that, let’s unpack what exactly we are talking about when we say cloud computing.

How Does Cloud Computing Work?

Cloud computing is using the internet to access, store and organize files, software, and media. In this way, the term “cloud” could be replaced by the term internet. It is used to designate the use of remote networks.

Cloud computing also takes advantage of the internet’s ability to allow us to access these networks. It enables us to store data and access files stored on other computers across the world.

Cloud computing for business generally provides services that businesses need. These include spreadsheets, word processors and tools such as dropbox. This enables a company to benefit from having a network without the need to set up expensive infrastructure.

The History of Cloud Computing

By 2006, a new wave of apps and software solutions had gained popularity. A term was needed to be able to describe what exactly this new wave of programs could do. Unlike previous software solutions, these platforms did not require extensive internal networks.

The term “cloud computing” was therefore coined. It described the fact that the internet had created a giant network. The internet allowed you to store files to a web server, and then access them from almost anywhere.

Companies began to offer up specific cloud-based services. Space on their networks could be rented and used by anyone able to afford it. These services became repositories of vast online content.

From 2013 to 2018 alone the number of users who engage in cloud computing rose from 2.4 to 3.6 billion. That’s an increase of almost 33%.

The Benefits of Cloud Computing

The first benefit to cloud computing that has drawn in so many businesses is cost. The price of using the cloud is very low compared to setting up extensive intranets and networks. It also removed the need to purchase and set up servers and other once-critical infrastructure.

The non-centralized nature of cloud computing also helps limit risk. Previous to cloud computing a hardware failure could result in the loss of critical information. This could bust deadlines and force work to be repeated.

With the rise of technology came the need for increased security. Using cloud computing allows businesses to take advantage of the most current security options. These are built into most cloud services and do not require additional spending by a company.

By unlocking the ability to do remote work, the cloud has streamlined business. It enables people to access information and necessary resources from anywhere in the world. They can then share that information amongst themselves for speedy collaboration.

Cloud computing fast became the easiest and quickest way to develop apps and other materials. These could be distributed across a wide market almost in the blink of an eye. This gives an enormous competitive edge over businesses that do not utilize the cloud.

Using the metrics provided by the cloud is a strategic windfall. Many companies are able to use this data in order to better tailor their products and services to customer needs. This increased responsiveness to business has been very advantageous for many businesses.

The Disadvantages of Cloud Computing

While cloud computing offers many advantages, it is far from perfect. Without proprietary control over their network businesses have lost a degree of control. This is especially true because not all cloud computing services are made equal.

A key disadvantage to cloud computing is network access. It is only useful in areas where stable connections to the internet can be made. Anything which makes access to the internet more difficult also impedes the use of cloud computing.

Having shared access to the cloud can also impact bandwidth. Having all your computers interact with the internet on a continuous basis can use up a lot of bandwidth. This can increase the cost of internet service in some cases and slow it down in others.

Limited and individualized features can also be a problem.

Each provider of cloud storage and solutions has its own system. This means that not even basic services are equal across all providers.

While the information stored in the cloud is secure, the internet is not. Having all the computers and workstations in your business constantly interact with the internet can leave vulnerabilities. This creates many entry points for potential security breaches.

Cloud Computing Is the Future of Now

The benefits of cloud computing are considerable.

Understanding cloud computing basics can give your company or business an incredible edge. Knowing how the cloud works is critical to improving your experience with it.

While we covered some of the disadvantages, it can’t be understated that cloud technology is taking over. Rapidly expanding uses and development on cloud computing means this trend will never slow down.

Despite this, cloud computing doesn’t completely replace the need for internal servers. It merely provides a competitive advantage to companies savvy enough to use it properly.

Hopefully, this article helps answer the question of what cloud computing is and how does cloud computing work. In a world where everything is always connected, any business that doesn’t keep up will be left behind.

Technological advances continue to tie more and more services and software to the cloud. This, in turn, makes it even easier to develop new technologies and solutions on the cloud. This cycle is set to continue into the foreseeable future.

If a business wants to truly keep pace with a changing world, there is no question that cloud computing is a game-changer for any business. There’s no limit to the growth of the cloud. As the internet gets more popular so too will cloud computing.