Cloud Computing

Definition

Cloud computing is a model for delivering computer services over the Internet, including data storage, computing power, software, and network resources. In the cloud, resources are available on-demand, allowing companies to scale their infrastructure and pay only for actual resource usage. In the context of Industry 4.0, cloud computing supports digital transformation by offering the flexibility, scalability, and performance needed to process Big Data and support advanced analytics, automation, and the Internet of Things (IoT).

The service provisioning model is divided into the following types:

  • Infrastructure as a Service (IaaS) – the primary category of Cloud Computing services. In the case of IaaS, the user rents IT infrastructure (servers and virtual machines, storage, networks, operating systems) from the cloud provider on a pay-as-you-go basis (payment for actual use of the service).
  • Platform as a Service (PaaS) – an on-demand environment for developing, testing, delivering and managing applications. PaaS is designed to make it easier for developers to quickly create web or mobile applications without worrying about configuring or managing the underlying infrastructure of servers, storage, networks and databases needed for development.
  • Serverless computing – an overlapping category with PaaS that focuses on building application functionality without spending time managing the servers and infrastructure required to do so. The cloud provider takes care of configuration, capacity planning and server management for the user. Serverless architectures are highly scalable and event-driven – using resources only when a specific function or trigger occurs.
  • Software as a Service (SaaS) – a method of delivering software over the internet, on demand and usually on a subscription basis. Cloud service providers host and manage the application and underlying infrastructure, and take care of maintenance activities such as software updates and security patches. Users connect to the application via the Internet.

    Basic kinds

    • Public cloud: Computing resources are provided by a third-party provider (e.g. Amazon Web Services, Microsoft Azure) and are shared by multiple users, reducing costs.
    • Private cloud: A cloud exclusively for a single organisation that manages its own resources or uses resources managed by a provider. It provides greater control and security.
    • Hybrid cloud: A combination of public and private cloud, allowing organisations to flexibly use both types as needed, such as moving some workloads to the public cloud during times of peak demand.

    Main roles

    • Online data storage – storing huge amounts of business data locally requires more and more space and increases costs. The cloud offers storage and access to data from multiple devices using simple interfaces. Advantages include high speed, scalability (automatically adapting to varying numbers of users) and integrated security.
    • Backup and recovery – secure storage and the ability to back up data and resources in the cloud.
    • Big Data analytics – large volumes of data make it impossible to store using traditional data management systems. Businesses can store and analyse Big Data thanks to the virtually unlimited storage capacity of the cloud.
    • Testing and development – with cloud computing, companies get scalable and flexible cloud services that they can use to develop, test and deploy products without committing their resources.
    • Anti-virus applications – anti-virus software stored in the cloud that monitors an organisation’s networks to protect against viruses and malware.
    • E-commerce applications – allow users and e-businesses to respond quickly to emerging opportunities. They offer a new approach to working with minimal time and organisational effort (managing customer data, products and other operating systems).
    • Education – providing an attractive new environment for learning, teaching and experimentation through e-learning, online (distance) learning programmes and information portals.

    Basic elements

    • Virtual machines (VMs): Cloud-enabled machines that allow users to flexibly scale computing power as needed. Virtual machines are the basis for running applications and processing data.
    • Cloud storage: A storage space accessible via the Internet that stores data, documents, backups, and other resources. The cloud offers different levels of storage, such as object storage (e.g. Amazon S3), block storage, and file storage.
    • Cloud databases: Databases available as services that can be scaled on-demand and that support a variety of data types, including relational (e.g. MySQL, PostgreSQL) and NoSQL (e.g. MongoDB, DynamoDB).
    • Container platforms and orchestration: Tools, such as Docker and Kubernetes, that allow applications to run in containers for greater flexibility and easier management of applications in the cloud.
    • Data analysis platforms: Cloud analytics services, such as Google BigQuery and Azure Synapse Analytics, enable advanced data analysis, Big Data processing, and integration with AI tools.
    • Security and compliance: Security mechanisms, such as firewalls, encryption, and identity and access management (IAM), that protect data and meet regulatory requirements.
    • APIs (application programming interfaces): APIs are interfaces that allow applications to communicate with cloud resources and use them to build applications and integrate services.
    • Virtual networks: Virtual networks that enable organisations to create secure connections within their cloud infrastructure, making it easier to access remote resources and control network traffic.
    • Infrastructure as code (IaC): A method of managing and configuring cloud resources through code (e.g. Terraform, AWS CloudFormation), which facilitates automation and infrastructure versioning.

    Mechanism of action

    • Resource request: Users or applications make requests for resources, such as computing power, storage, or databases, which are automatically allocated by the cloud provider.
    • Scaling of resources: The cloud enables flexible scaling of resources up or down depending on current demand. This allows companies to optimise costs as they only pay for the actual use of resources.
    • Access over the Internet: Users can access cloud resources over the Internet, which enables remote management and monitoring of services and real-time collaboration.
    • Management and monitoring: Cloud-based tools make it possible to manage resources, monitor their performance, and analyse consumption data. This provides control over resources and enables optimisation of operations.
    • Data processing and storage: The cloud makes it possible to process large amounts of data and store them in different locations, which increases the reliability and availability of information.
    • Security and data protection: The cloud offers security mechanisms, such as encryption, multi-factor authentication, and identity management systems, to protect data from unauthorised access.
    • Automation and optimisation: The cloud enables automation of business and IT processes, such as backups, disaster recovery, and system upgrades, which increases efficiency and reduces the risk of errors.
    • Consolidation and settlement: Cloud computing offers systems for monitoring resource consumption and settlement of costs, allowing organisations to control spending and align services with budgets.