Cloud computing is an on-demand access to a pool of computing resources – like development tools, applications, servers, data storage, networking capabilities, and more – over the internet. Rather than investing heavily in IT infrastructure and resources, cloud computing helps access and use these resources on a pay-as-you-go basis. This facilitates speed, flexibility, and scalability that can help businesses innovate, evolve, and grow.
Cloud computing services can support seamless collaboration, data storage, application development, and innovation to effectively navigate today's dynamic and interconnected landscape.
Nearly 65% of modern organizations now rely on three or four cloud providers to support their business operations, while 73% of the executives believe cloud migration has been highly effective for their business. However, despite increased investment in cloud computing, utilization has yet to match up, as companies have over $300 billion in unused cloud commitments. It is crucial for companies to rationalize cloud spend and gain control over security and governance to capitalize on the potential of cloud computing services.
We can categorize cloud computing according to deployment and service models as follows:
Each business is unique, and so each decision about which approach to use will also be unique, based on operational requirements and understanding the pros and cons of each approach.
Let's delve deeper into different cloud computing services to explore how they can support various business functions.
Here are some key differences between different cloud models:
Private cloud
A private cloud is dedicated solely to a single organization for greater control, customization, and data security. Private clouds are typically located on-premises and come with the high costs and resource limitations of a traditional IT environment. A private cloud computing model is ideal for businesses that have to navigate stringent data security and compliance requirements and need better control over their data and IT resources.
Public cloud
A public cloud is IT infrastructure owned and run by a third-party cloud service provider – like Google Cloud, Amazon Web Services, IBM Cloud, or Microsoft Azure. You can access public cloud resources – such as storage, network, applications, and develop-and-deploy environments – over the internet, where multiple tenants share the available environments and resources. Although public clouds are typically run off-premises, some cloud service providers offer public cloud services on clients' on-premises data centers.
A public cloud model is beneficial for businesses looking for flexibility, scalability, and cost-effectiveness to deploy web applications or development environments.
Hybrid cloud
A hybrid cloud computing model combines the features of both private and public clouds, where the cloud environment comprises at least one private cloud and one or more public clouds. It creates a network of multiple separate – and connected – environments, allowing you to choose from the resources and services from different cloud deployment models - leveraging the hybrid capabilities of public and private cloud.
A hybrid cloud environment can suit businesses that want to benefit from the flexibility and scalability of public cloud while maintaining sensitive data and workloads in a private cloud environment.
Multicloud
Another popular model is a multicloud environment, where businesses combine cloud services from two or more providers. The flexibility to choose between the cloud solutions best suited for business and the reduced risk of vendor lock-in has resulted in nearly 90% of modern businesses adopting a multicloud environment.
A multicloud environment is ideal if you want to avoid vendor lock-in for the duration of your cloud contract, diversify risk, and select the best features from different cloud providers.
Polycloud
Budget constraints constantly challenge organizations to balance their infrastructure needs. For this reason, IT organizations implement ways of purchasing infrastructure, particularly for cloud-native platforms. Solutions like the Infosys Polycloud Platform allow corporations to buy, build and manage vendor-agnostic offerings in multiple hybrid cloud providers. The platform extends the hybrid model by incorporating multiple public clouds and on-premises infrastructure, providing greater flexibility and resource optimization, and creating a more adaptable and efficient cloud strategy. Additionally, it avoids vendor lock-in and guarantees portability across any provider’s infrastructures or data stores.
Different cloud approaches are not mutually exclusive, and businesses can combine the features of one or more services at a time..
Here are the four main types of cloud computing services:
Infrastructure as a Service (IaaS)
Cloud service providers offering IaaS deliver on-demand access to virtualized infrastructure resources – such as virtual machines, storage, or networking components. However, the business is responsible for the ownership and management of any software assets necessary. This is ideal for businesses that do not want to carry the burden of physical hardware management but need cost-effective and secure access to flexible and scalable infrastructure.
Platform as a Service (PaaS)
Unlike IaaS, PaaS providers offer both hardware and software resources necessary to develop, test, run, and manage cloud applications. It not only streamlines the application development process but also makes it simpler and more convenient, cost-effective, and efficient. Different PaaS providers offer varying levels of control and customization, allowing organizations the flexibility to customize solutions that best suit their specific needs.
Software as a Service (SaaS)
SaaS offers access to a full application stack over the internet. These are often ready-to-use applications, which users can access through a subscription. SaaS solutions – like email services, CRM software, or office tools – are cost-effective, accessible, scalable, and easy and quick to deploy. However, they are limited in terms of customization flexibility and data control and can present security concerns.
Function as a Service (FaaS)
Representing a shift from the traditional computing models, serverless computing – or function as a service (FaaS) – allows enterprises to focus on developing, computing, running, and deploying code without having to worry about maintaining server infrastructure. FaaS platforms can help enterprises make their operations human-centric, future-ready, and seamless. Such serverless applications are often event-driven, enhancing the efficiency and scalability within the serverless computing environment. However, organizations need to navigate the challenges of limited infrastructure control and potential security concerns when opting for FaaS.
No matter the business model – B2B, B2C, or D2C - cloud computing offers advantages for businesses operating in today's digital-first and data-driven environment, from enhanced efficiency and scalability to accessibility and cost-effectiveness.
Cost efficiency
Cloud computing solutions eliminate the need for hefty upfront investments in owning and maintaining hardware and software infrastructure. The popular pay-as-you-go cloud model allows businesses to easily scale up (or down) cloud resources based on variable demand, optimizing the costs to operate within the cloud environment.
Scalability and flexibility
Cloud platforms offer scalability and flexibility when it comes to storage options, control choices, tool selection, and security features. Enterprises can quickly adjust the cloud resources you use as business requirements change. This offers the agility required to cope with the changing workloads and dynamic working conditions and achieve optimal performance efficiency.
Accessibility and collaboration
Cloud services facilitate remote access to data and applications, offering enhanced accessibility regardless of device choices or the physical location of the team members, and helps foster collaboration among geographically dispersed global teams. With everyone having access to the same data, it ensures seamless communication between different team members and allows you to redefine productivity and enhance performance efficiency as well.
Security and compliance
Reputable cloud providers implement robust security measures and protocols, including data encryption and two-factor authentication, for greater data security and privacy. They also adhere to industry-specific compliance standards, helping enterprises manage cyber and data risks. Additionally, cloud backups mitigate the risks of data loss in case of technical failure.
Automatic updates and maintenance
Cloud service providers relieve businesses of constant maintenance or updates (performance and security), which is time- and resource-intensive. This ensures that the applications and infrastructure you use are always up-to-date, secure, and compliant with relevant regulatory guidelines.
Organizations embarking cloud adoption can encounter a range of challenges – from technical complexities to resistance to change. Identifying, understanding, and addressing these challenges can be pivotal to seamless cloud adoption.
Some of the major challenges to cloud adoption include the following:
Defining cloud migration goals
Setting clear cloud migration goals is one of the first steps – and often the biggest challenge – when it comes to cloud adoption. Understanding your business objectives and requirements is a crucial first step in building your migration plan.
Migration costs
Although it can offer many benefits in the long run, cloud migration can be costly in the short term. Almost 53% of organizations struggle to monitor and manage their costs in the cloud environment.
Data security
Data security is a critical concern when it comes to cloud adoption, especially if you are relying on a public cloud deployment model. The lack of control over the infrastructure, data, and security protocols often hinders cloud adoption.
Selecting the right cloud service provider
With the number of providers available in the market, selecting the one right for your business can be challenging. You also run the risk of vendor lock-in, which can limit the tools and services you can access. Budget, available tools and services, security compliance, and manageability are some of the factors that can help enterprises choose the right cloud provider.
Lack of expertise
Cloud adoption and migration is often a complex and lengthy process. Without in-house expertise, you might find it challenging to manage your cloud migration and encounter resistance to change. However, the right cloud service provider can help businesses overcome this challenge by lending their expertise and experience.
Compliance
Modern businesses have to comply with local and global regulatory requirements when handling data. Companies operating under a strict compliance framework might find it challenging to migrate to the cloud as data has to be protected at rest and in transit.
Migration strategy
There is no one-size-fits-all solution when it comes to a migration strategy. You have to focus on your migration goals and business objectives when selecting the cloud deployment model and service best suited for your business, planning downtime, and managing training resources for your employees.
Post-migration performance monitoring
Performance concerns often hinder cloud adoption for many, with businesses facing challenges in post-migration data security and monitoring capabilities. But using the right tools to build audit trails and visual dashboards can help you monitor and analyze the cloud performance.
Adopting best practices like focusing on planning, skill development, and collaboration can be significant first steps towards cloud adoption. Additionally, you can also prioritize data security and compliance, a hybrid multicloud approach, and continuous monitoring to overcome many of the cloud adoption challenges. However, working with cloud experts to understand and address unique cloud adoption challenges for your business can help eliminate any pain points and ensure a smooth cloud adoption journey.
The applications of cloud computing are endless, no matter the functional use or industry you want to focus on. Partnering with the right cloud expertise, such as Infosys Cobalt, enables you to build and manage the right cloud solutions for your business.
Let's look at the top applications across different functional areas.
Collaboration and communication
One of the fundamental applications of cloud computing stems from its accessibility feature – data, applications, or enterprise resources – without the limits of device or physical location. This is crucial in today's global workplace, where seamless collaboration and communication between teams across international markets is critical. Cloud makes it possible for teams to collaborate and communicate without any barriers, enhancing the productivity of multinational workplaces.
Data analytics and business intelligence
Cloud applications help businesses to facilitate data-driven decision-making through access to advanced analytics and business intelligence tools. Such tools can parse large quantities of data to identify patterns and find insights that can add value to the business.
Custom dashboards and data visualization tools in cloud applications monitor various key parameters and custom-defined business metrics, providing a detailed snapshot of performance indicators for review and analysis.
Application development and testing
Cloud applications also accelerate application development cycles by creating an agile testing and development environment. The cloud makes creating such environments cost-effective while making the resources – physical and virtual – available instantaneously. This can streamline the application development and testing process, reducing the time-to-market while enhancing the overall software quality.
These applications find their place across multiple industries as well, including:
Healthcare
Cloud solutions are bringing digital transformation to the healthcare sector through seamless interoperability, secure data storage, and access to advanced analytics tools. Easily accessible centralized healthcare records, real-time cloud applications allowing interactions between healthcare institutions and patients, and advanced analytics tools to improve clinical diagnosis accuracy can make healthcare more effective.
Read our case study on how the Infosys Polycloud Platform transformed the IT operations of a managed healthcare services provider through a digital command center to overcome challenges including the inability to track performance metrics and lack of visibility into operational efficiency.
Financial services
The modern financial industry has to deal with vast amounts of data to assess risk, offer personalized services to their customers, and comply with national and international regulatory standards. Cloud computing applications can transform the way we look at financial services, helping ensure compliance, security, and scalability as financial institutions continue to grow.
For example, a company offering post-trade market infrastructure services has been able to reduce its MTTR by 80% in a multicloud environment. Overcoming the challenges of lack of visibility, sub-par analytics capabilities, and semi-automated infrastructure management, the company was able to leverage a virtual command center to enhance observability and root cause analysis to enable incident prevention.
Retail and e-commerce
Cloud also makes it easier for retail and e-commerce businesses to monitor and administer their operations, keeping track of everything from order details and delivery tracking to inventory management and company costs. The scalable and flexible cloud solutions can also enhance customer experience.
Manufacturing
Cloud applications can support smart manufacturing solutions to drive manufacturing efficiency. Additionally, they help break down the data silos and optimize and eliminate bottlenecks in supply chains to make them more efficient.
In the manufacturing sector, the Infosys Polycloud Platform facilitated the development of a unified IT infrastructure to help boost incident management at an EPC company. Leveraging automation solutions, the Polycloud Platform was able to provide smart monitoring and proactive reporting to minimize disruptive alerts and enhance incident management.
Education
The education sector has been adopting technology and cloud solutions to make knowledge more accessible to students. Cloud-based e-learning tools are making it easier for teachers to interact with students, facilitate collaboration, and make sure educational resources are available to students around the globe.
Although these are just some of the applications of cloud computing, they demonstrate the potential of cloud solutions and the deep expertise of Infosys in leveraging cloud environments to address unique needs, drive innovation, and boost efficiency across various industries.
Cloud security is a set of protocols, procedures, and technologies to address internal and external threats. As more businesses migrate to the cloud, ensuring robust cloud security and governance protocols has become imperative to mitigate risks, protect sensitive data and applications, and safeguard the cloud infrastructure against ever-evolving cyber threats. However, 43% of the organizations lack policies to govern cloud deployment effectively.
Effective cloud security protocols are not only essential for protecting data from unauthorized access, but they are also crucial for regulatory compliance and avoiding legal and reputational repercussions. Additionally, they help manage and mitigate the risk of cyber-attacks and service disruptions while building overall resilience and accountability into your processes by ensuring effective identity and access management.
As a global leader in digital services, Infosys can help you navigate the modern cloud security challenges with hybrid cloud security solutions.
The prevailing perception of the cloud as solely a technological platform is expected to change significantly by 2027. Cloud computing will evolve beyond just a method for delivering applications: it will become a primary catalyst for driving business innovation. As digital organizations rely heavily on technology for competitive operations and customer experiences, the cloud will continue to occupy a central role in both existing and upcoming technological advancements. Here are some key emerging technologies that are likely to play a pivotal role in shaping the future of cloud computing and present exciting opportunities for businesses in the future:
Edge computing
The evolution of edge computing has brought data processing closer to the source, reducing the vulnerability of cloud services to internet connectivity disruptions. Edge computing can offer benefits like reduced latency, increased resilience, and improved security.
Serverless computing
Serverless computing is an emerging trend with the potential to transform how we host applications and services. Here, the cloud provider manages the hardware dynamically, enabling the organization to focus on code development, which would be executed in response to an event. Although it is in its early stages, serverless computing has the potential to be one of the most scalable and cost-effective ways to access cloud services.
AI and machine learning integration
Cloud environments are increasingly integrating AI and machine learning solutions into their data analytics tools to help identify patterns and trends in data to derive valuable insigh¬ts. As these tools evolve and become more efficient, the integration of AI and machine learning in cloud computing will continue to grow.
Green cloud
The extensive power, cooling, and physical infrastructure requirements of cloud computing have a significant environmental impact. As a result, cloud providers are looking for ways to address aspects of energy savings, e-waste management, and tackling the effects of climate change. With emerging environmentally responsible business practices, the rise of the green cloud is imminent.
Cloud computing is a key part of any enterprise’s digital ecosystem, offering agility and efficiency while providing access to transformative technologies. Different deployment models and services cater to individual business needs, enabling cost efficiency, scalability, and productivity. Despite challenges like defining migration goals and ensuring data security, partnering with experts can facilitate a seamless transition to the cloud, unlocking its full potential for businesses across various industries.
Explore our cloud offerings.
Switching from physical servers to the cloud can be a lengthy, time-consuming, and often expensive process. Enterprises must navigate challenges including data migration complexities, compatibility issues, the need for expert training, and potential downtime when planning cloud migration.
Businesses must consider service offerings, scalability, security, compliance, cost, flexibility, and support, among others, when choosing a cloud service provider.
The main characteristics include on-demand self-service access, resource pooling, measured service, pay-per-use pricing, virtualization, scalability, flexibility, and security.
Cloud services offer real-time access to data and applications without location or device restrictions, facilitating collaboration across borders.
Cloud analytics help businesses harness the power of data and advanced analytics tools to enable real-time data analytics. Companies can gain valuable insights from such analytics to identify trends, facilitate data-driven decision-making, and be agile in response to changing market conditions.
Cloud computing offers scalable resources while reducing upfront costs, thus enabling rapid development, testing, and deployment of new applications and contributing to business growth. It also fosters agility, allowing businesses to experiment, learn, innovate, and adapt in response to evolving market trends, driving overall growth and a competitive edge for modern businesses.
