What is Cloud Computing?

Cloud and cloud computing describes the use of IT infrastructures and services that are available via the Internet and rented as a service. These services include on the one hand storage space, for which the principle of the cloud is mainly known. On the other hand, they also include computing power or application software. Since they are not located on the local PC, laptop, or tablet, the user’s location does not matter. The latter can access the services from anywhere with the help of programs or a web browser.

The term cloud is short for cloud computing, which has become commonplace in our everyday lives. There is no difference between the terms.

How does cloud computing work?

Cloud computing is based on a principle that is quickly explained: service providers make servers available to customers in the form of virtual data centers. Customers can expand their storage requirements as needed. The advantage: every user has online access to the cloud and thus to the data, software or computing power at any time. It is also possible to set up an internal data center with servers.

The classification of cloud computing

The cloud can be divided into different models based on its use. A distinction is made between service models, delivery models and the characteristics.

The service models of the cloud:

  • On Premise

  • Infrastructure-as-a-Service (IaaS)

  • Platform-as-a-Service (PaaS)

  • Software-as-a-Service (SaaS)

On Premise

With the on-premise solution, all data is hosted and managed on internal servers. This is an optimal solution especially for companies with high data protection requirements.

Infrastructure as a Service (Iaas)

With Infrastructure as a Service (IaaS for short), a cloud provider makes IT resources available. These can be servers, storage or other network components, for example. Probably the best-known representatives on the market are Amazon Web Services (AWS) and Microsoft Azure.

Platform as a Service (PaaS)

Platform as a Service (PaaS for short) is a cloud offering in which users are provided with a platform in which they can create and run applications themselves. In addition, the service provides a set of developer tools for creation. The best-known examples here are SAP Cloud and Google App Engine.

Software as a Service (SaaS)

In the Software as a Service (SaaS) service model, the user gets access to the provider’s software in the cloud and can use it from anywhere. This does not require software to be installed locally on the computer. Popular examples of SaaS are MailChimp and Slack.

Ownership of the service models is decreasing from the on premise solution to the software as a service model.

The classification of the cloud into deployment models or delivery models

Private cloud – for reasons of data protection and security

Many companies prefer to operate and host their IT services themselves for reasons of data protection and IT security. They maintain their own servers and make the respective applications and storage options available to their employees via the web browser. These services are often only accessible on their own intranet or via a virtual private network (VPN). This type of data storage is the private cloud.
Alternatively, a private cloud can also be set up with a public cloud provider. In this case, a separate area is installed that is also physically separated from the other services. The services and applications preferred by the company are provided in this area.
The private cloud can also be classified into different types:

  • The internal private cloud is operated and hosted entirely by the company itself (on-premise or “behind the firewall”).

  • The managed private cloud is also hosted by the company itself, but is managed, monitored and maintained by an external partner.

  • The hosted private cloud is housed in a data center of a cloud service provider. This cloud is operated on behalf of the company and is separated from all other environments.

  • The community private cloud represents a special form. Several companies from the same industry or a group of companies share the operation and hosting of a cloud with each other. This form is therefore an industry-specific private cloud.

Public cloud – the most common form of cloud

The public (public) cloud is the most commonly used cloud service. A provider makes the required resources (storage space, computing power, software) publicly available to all users as a service:
Probably the best-known examples are e-mail providers such as GMX, Hotmail or Web.de. Google Docs, but also the paid services of Microsoft Office365 are among them. The advantage of the public cloud is that the company’s own IT infrastructure and software become superfluous. High investment costs can therefore be avoided. However, the public cloud has a disadvantage in terms of data protection. The data is stored on the servers of the respective cloud provider, such as Dropbox, OneDrive, iCloud or GoogleDrive. Thus, this type of cloud has absolute data protection relevance.

The hybrid cloud – combines the advantages of a private and a public cloud

In every company, there is data that absolutely must remain in-house due to its sensitivity and data protection relevance and therefore needs to be specially protected. These are then provided via a private cloud. However, certain services can be outsourced to a public cloud. In this way, the use of a hybrid cloud approach results in a high degree of flexibility, while the requirement for data protection and security is also satisfied.
As a rule, the higher expenses due to the more complex infrastructure have a disadvantageous effect. The configuration and management of a hybrid cloud are significantly more complex than when using a private or public cloud. The risk of data being stored in the wrong part of the cloud can usually never be completely ruled out.
The underlying security strategy must necessarily follow an end-to-end approach. Check exactly what data you generate, process and store. You must also analyze every process for security and function. This is the only way to avoid errors.

Other cloud delivery models:

  • Multi Cloud: A Multi Cloud is based on the concept of the Hybrid Cloud and additionally bundles several cloud services.

  • Community Cloud: With the community cloud, the costs are shared in the community. This is the case, for example, with the cloud solution in a university.

  • Virtual private cloud: The virtual private cloud is accessed using a secure connection, such as a VPN, to a public cloud.

The advantages of cloud computing

The plus points of the cloud can be summarized in three main advantages:

  • Flexibility

  • Efficiency

  • Strategic benefits

The most well-known advantage of the cloud is flexibility. Users can customize the cloud according to their needs. For example, the cloud can be scaled down or up as needed. But the delivery model is also customizable. For larger companies, the on-premise solution is particularly popular. Here, the cloud servers are hosted in the company’s own premises. This solution is particularly interesting for companies with high data protection regulations. Another important point of flexibility is encryption. Above all, secure end-to-end encryption offers data extra protection. Particularly sensitive data can therefore also be stored in the cloud.

Another advantage of cloud computing is efficiency. With the help of web apps and mobile apps, you can access the data from anywhere. In addition, online storage is also frequently used as a backup solution. This way, hardware damage cannot lead to data loss as quickly.

Other advantages include:

  • Increased productivity: with local data centers, IT management tasks have to be performed, such as applying software patches. This is eliminated with cloud computing.

  • Faster provisioning: Cloud provisioning usually takes just a few clicks.

  • Better performance: the hardware of cloud computing services is constantly updated.

  • Reliability through recovery plans

The right choice of cloud provider

The topic of cloud computing is interesting for you as a company if your employees need to access the same data at different locations. At the latest then your IT department should think about cloud computing. Choose the right cloud service for your company based on the planned application. When choosing a cloud provider, they should consider the following points.

  • The cloud’s servers should be located at least in the EU, but even better in Germany.

  • Choose a German company as a service provider to get the best possible customer service.

  • The files should always be transferred encrypted. End-to-end encryption is the most secure.

  • In the event of an Internet outage, access to the files should still be possible.

Further knowledge from the topic of cloud computing

Cloud Computing

In the beginning, cloud computing was primarily understood to mean the provision of storage volumes via central data centers. Instead of buying storage, you could rent storage flexibly and as needed.

This continues to happen today in varying degrees, but the offering has been expanded to include numerous other interesting services from cloud providers.

Further knowledge in the areas of data transfer and data storage

Backup

A backup is a backup copy of data that can be used to restore data if the original data is damaged, deleted or encrypted.

In the best case scenario, a backup should be stored in a different location than the original data itself - ideally in a cloud. You can find out why this is the case and what this has to do with ransomware attacks here.

GDPR, ePrivacy

With the introduction of the General Data Protection Regulation, DSGVO for short, extended requirements came into effect, especially with regard to personal data protection - including sensitive sanctions for violations of the law.

Read here what effects the GDPR has on you and your company.

The ePrivacy Regulation, which is still a work in progress at the moment, will also be discussed, but will in future formulate binding data protection rules that will apply within the EU.

GoBD

According to the Principles of Proper Accounting (GoBD), data and documents that are to be recognized by the tax authorities for tax evidence must be handled in a special way.

We will explain to you the most important facts about archiving and storing electronic documents.

Encryption

In the digital age, data protection and data security play an outstanding role.

To ensure that electronic data cannot be viewed by third parties and to prevent data misuse, it must be encrypted. This applies both to their storage and, above all, to their transport via the public Internet.

You can get deeper insights into the topic of encryption here.

Ransomware

Ransomware attacks have increased significantly in recent years. After a successful attack, all data on your computer is encrypted. From this moment on you no longer have any access options. The economic damage to companies is often enormous.

Find out here how you can protect yourself against digital blackmail.

Security by Design

Especially with software that is intended to protect your users' data from unauthorized access by third parties, software and data security must be taken into account and integrated into the entire software life cycle.

You can find out why this is very important and how you as a user benefit from it here.