Key takeaways:
Cloud computing enables businesses to access IT resources whenever they need them, making it easier to scale, stay flexible, and manage costs. By running applications and storing data on secure remote servers, organizations no longer need to manage physical hardware.
With different cloud deployment options—public, private, hybrid and multicloud—and cloud service models like IaaS, PaaS, SaaS, and FaaS, organizations can choose what works best for them. As a result, cloud computing drives faster deployment, seamless collaboration, and more opportunities to innovate and stay ahead in a fast-paced business landscape.
Cloud computing explained
Cloud computing is a way to use computers, storage, and software over the internet without relying on local devices or on-premises infrastructure. It allows businesses and people to access resources anytime, scale up or down as needed, and only pay for what they use.
The National Institute of Standards and Technology (NIST) defines cloud computing as:
“A model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources—such as networks, servers, storage, applications, and services—that can be rapidly provisioned and released with minimal management effort or service provider interaction.”
This model is built on five essential characteristics:
- On-demand self-service - Users can provision computing resources by themselves, on demand.
- Broad network access - Resources are provisioned and accessed over the internet.
- Resource pooling - Resources are pooled together to serve the needs of multiple customers.
- Rapid elasticity - Capabilities can be rapidly provisioned or scaled down depending on real-time need.
- Measured service - Resource usage can be monitored and controlled by the customer.
Today’s enterprises need technology that simply works—wherever and whenever the business demands it. Cloud computing makes this possible. Rather than being confined by the limitations of traditional IT infrastructure, businesses can scale rapidly, adapt to evolving market shifts, and drive innovation. The pay-as-you-go model also helps companies optimize costs while accelerating their time to market.
How does cloud computing work?
Cloud computing works by running software and storing data on remote servers instead of local devices. At its core is virtualization, a technology that allows a single physical server to host multiple virtual machines (VMs). The VMs run independently, helping businesses maximize hardware utilization and scale resources quickly as per demand.
In the background, cloud providers operate extensive data centers consisting of high-performance servers. Requests are directed to these data centers, where hypervisors manage and allocate resources seamlessly. The outcome? A smooth, on-demand experience where users only pay for what they consume, and services stay fast, secure, and reliable.
Benefits of cloud computing
Cloud computing has several practical benefits that enhance the efficiency and ease of running and managing modern applications and services.
- Cost-effectiveness - Transforms significant upfront expenditures into flexible, pay-as-you-go pricing models, reducing ownership costs and eliminating unused capacity.
- Scalability and adaptability - Resources can be scaled up or down instantly based on demand, enabling faster development, experimentation, and responsiveness.
- Rapid deployment - With built-in tools and updates, businesses can launch applications quickly and reach users globally without delay.
- Security and data backup - Leverages strong security measures such as encryption and threat detection. It also stores data across multiple locations, helping businesses recover faster during a disruption.
- Mobility and collaboration - Allows teams to access files from anywhere and work together in real time, making collaboration easier and more efficient.
Types of cloud deployment models
Cloud deployment models explain how cloud infrastructure is made available to users and organizations. There are five main types, each with different levels of control, security, and cost.
- Public clouds – Provide storage and servers online. They are shared by many users, but only subscribers can access them. They are low-cost and good for businesses that need flexibility and scaling.
- Private clouds – Used by only one company or group. Resources are not shared, giving more control, customization, and security. Best for businesses needing strong privacy or meeting compliance rules.
- Hybrid clouds – Combine two or more types (usually public and private). They let data and applications move between setups, offering flexibility, smooth performance, and stronger control over critical data.
- Multicloud – Leverages services from multiple public cloud providers simultaneously, allowing organizations to avoid vendor lock-in, enhance resilience, and tailor solutions to specific business needs across platforms.
- Community clouds – Shared by several organizations with similar goals or compliance needs. They use a common setup with agreed standards, helping cut costs while maintaining governance.
Each model has trade-offs in cost, security, control, and complexity. This helps organizations choose the best option for their needs, budget, and compliance requirements.
Types of cloud service models
If cloud computing is the delivery of computing resources to customers over the internet, then cloud computing services are a way to facilitate that delivery from certain delivery models.
The four types of cloud computing service delivery models consist of the following:
- Infrastructure as a Service (IaaS): Offers compute, networking, and storage resources on demand. Users manage applications and data, while the provider takes care of the physical hardware. Examples include Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform.
- Platform as a Service (PaaS): Provides a ready-to-use environment to build, run and scale applications without managing the infrastructure. Developers can focus on building applications while the provider manages servers, storage, and operating systems.
- Software as a Service (SaaS): Delivers fully functional applications over the internet, eliminating installation or maintenance. Updates and patches are automatic, simplifying IT management.
- Function as a Service (FaaS): Enables developers to run code in response to specific events without worrying about managing servers. It’s ideal for building and deploying applications as individual functions or microservices and scalable workloads.
These “as-a-service” models enable organizations to adopt cloud computing flexibly, reduce infrastructure costs, and scale resources efficiently.
Conclusion
Cloud computing has revolutionized the way companies leverage and oversee their IT resources. Transitioning from conventional infrastructure to on-demand services offer scalability, flexibility, and cost efficiency—while also fueling innovation.
In fact, Gartner emphasizes that by 2027, cloud computing will evolve from a technology enabler to a business disruptor and strategic necessity.1 It will be deeply embedded in enterprise operations, driving competitive advantage and supporting mission-critical goals across industries.
FAQs
Kyndryl Cloud Services stands out by offering end-to-end lifecycle coverage, from design and migration to fully managed operations. They combine deep expertise in hybrid IT and multicloud environments with secure-by-design practices. Leveraging automation and FinOps, along with modular offerings, Kyndryl enables businesses to achieve flexibility, speed, and cost optimization—delivering a tailored, secure, and scalable cloud strategy.
Kyndryl provides end-to-end management across on-premises, private, and public clouds through a unified operating model. We standardize provisioning, monitoring, patching, backup, disaster recovery, and compliance across platforms like VMware and major hyperscalers.
Our approach uses automation, observability, and governance frameworks—including a control plane for visibility and policy enforcement—so customers gain consistent security, performance, and cost optimization across their hybrid estate. Integration with existing ITSM and monitoring tools ensures seamless operations without disrupting your current ecosystem.
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