Cloud Computing Concepts You Need To Know

Neal Davis
5 min readMar 18, 2024

In the modern business landscape, cloud computing has emerged as a critical technology, underpinning much of the digital transformation across various sectors. Its importance cannot be overstated, yet the plethora of terms and concepts associated with cloud computing can often seem daunting, especially for those new to the field. This guide aims to demystify cloud computing, breaking down its core concepts into digestible, non-technical language that beginners can understand and engage with.

What is Cloud Computing?

At its most basic, cloud computing refers to the delivery of computing services over the internet. These services encompass a broad range of resources, including servers, storage, databases, networking, software, and more. The beauty of cloud computing lies in its flexibility and cost-effectiveness: businesses can rent access to these resources as needed, rather than investing in and maintaining their own physical infrastructure. This model is often described as “pay-as-you-go,” which helps companies save on upfront costs and scale their IT resources up or down based on demand.

The Universe of XaaS: Anything as a Service

One of the foundational concepts in cloud computing is XaaS, or Anything-as-a-Service. This broad term encompasses the various services offered via the cloud, transforming traditional IT solutions and business processes into accessible, flexible, and scalable services. XaaS highlights the shift from buying and owning software or hardware to leasing these as services on an on-demand basis. This approach not only simplifies access to technology but also aligns costs with consumption, offering significant financial flexibility.

Software as a Service (SaaS)

SaaS applications are perhaps the most well-known form of cloud computing services. In this model, software applications are hosted remotely by a service provider and made available to customers over the internet. This eliminates the need for businesses to install, update, and manage software on individual computers. Instead, users can access and use software applications through a web browser, which facilitates ease of access, scalability, and integration with other services.

Examples of SaaS services include:

  • Google Workspace: A suite of cloud-based productivity and collaboration tools from Google, including Gmail, Docs, Drive, Calendar, and Meet. It enables teams to communicate, collaborate, and accomplish tasks efficiently from anywhere.
  • Salesforce: A comprehensive customer relationship management (CRM) solution provided as a cloud service. It offers tools for sales, marketing, service, and more, helping businesses manage customer interactions and data all in one place.

Platform as a Service (PaaS)

PaaS provides a cloud-based environment with everything required to support the complete lifecycle of building and delivering web-based applications — without the complexity of building and maintaining the underlying infrastructure. Developers gain a platform to write, test, and deploy their software, which can significantly speed up development cycles and reduce costs. PaaS solutions often support various programming languages and frameworks, offering developers flexibility in how they build their applications.

Examples of PaaS services include:

  • AWS Elastic Beanstalk: Simplifies deploying and managing applications in the AWS Cloud without worrying about the infrastructure. It automatically handles the deployment details such as capacity provisioning, load balancing, and auto-scaling.
  • Azure App Service: A fully managed platform for building, deploying, and scaling web apps and APIs. It supports multiple languages and integrates with Azure DevOps, GitHub, and Bitbucket, offering a highly scalable and secure environment.
  • Heroku: A cloud platform supporting several programming languages, ideal for building modern apps. Heroku abstracts away from infrastructure management, allowing developers to focus on code, not servers. It’s known for its ease of use, deployment simplicity, and scalable app hosting capabilities.

Infrastructure as a Service (IaaS)

IaaS delivers fundamental computing resources (such as virtual servers, storage, and networking) over the internet. With IaaS, businesses can rent infrastructure from a cloud provider on a pay-as-you-go basis. This model offers the flexibility to scale computing resources up or down based on requirements, making it an excellent option for businesses that experience fluctuating workloads.

Examples of IaaS services include:

  • Amazon EC2 (Elastic Compute Cloud): Provides scalable computing capacity in the AWS cloud. It enables users to launch virtual servers, configure security and networking, and manage storage. EC2 makes web-scale cloud computing easier for developers.
  • Azure Virtual Machines: Offers on-demand, scalable computing resources with a wide selection of VM sizes and operating systems, including both Linux and Windows. Azure VMs can be used to develop, test, run applications, and extend data centers.
  • Google Cloud Compute Engine: Delivers high-performance virtual machines in Google’s advanced data centers and worldwide fiber network. Compute Engine’s tooling and workflow support enable scaling from single instances to global, load-balanced cloud computing. Compute Engine offers a secure and customizable compute service that lets you create and run virtual machines on Google’s infrastructure.

Going Serverless

Serverless computing represents a further evolution in cloud services, allowing developers to build and run applications and services without managing servers. This model abstracts the server management aspect, letting developers focus on writing code. The cloud provider automatically manages the allocation of machine resources. Serverless architectures can reduce operational costs and complexity while speeding up deployment times.

Public Cloud: The Multi-Tenant Environment

The public cloud is a model where cloud services are delivered over the public internet and shared across different customers or tenants. This approach offers high scalability and elasticity, making it ideal for businesses that need to quickly scale their IT resources. Public cloud services are typically offered on a pay-per-use basis, providing flexibility and cost savings over traditional IT infrastructure.

Private Cloud: Dedicated and Secure

In contrast to the public cloud, the private cloud refers to cloud services used exclusively by a single business or organization. Private clouds offer greater control and security, making them suitable for enterprises with strict data privacy, compliance, or performance requirements. Though potentially more costly than public cloud services, private clouds provide a dedicated environment tailored to a business’s specific needs.

Hybrid Cloud: The Best of Both Worlds

Hybrid cloud environments combine public and private cloud services, offering businesses flexibility and scalability. By allowing data and applications to move between private and public clouds, a hybrid cloud strategy enables businesses to balance cost, performance, and security requirements. This model is particularly valuable for organizations with dynamic or changing workloads, compliance considerations, or those looking to leverage public cloud resources while maintaining sensitive data on-premises.

Embarking on Your Cloud Journey

Understanding these fundamental cloud computing concepts is the first step towards leveraging the cloud’s power for business innovation and efficiency. Whether you’re looking to deepen your knowledge or embark on a career in cloud computing, starting with a foundational course, such as AWS Certified Cloud Practitioner, can be an excellent way to build a solid skill set in this exciting field.

Cloud computing offers immense potential to transform how businesses operate, making technology more accessible and scalable than ever before. By familiarizing yourself with these core concepts, you’re better equipped to navigate the cloud computing landscape and harness its benefits for your career or business. For a more in-depth exploration of cloud computing and hands-on experience, consider enrolling in our on-demand training or virtual cloud mastery bootcamp that will help you gain the skills needed to thrive in the cloud era.



Neal Davis

Founder of Digital Cloud Training, IT instructor and Cloud Solutions Architect with 20+ year of IT industry experience. Passionate about empowering his students