What is Cloud Computing?

"Cloud Computing", by definition, refers to the on-demand delivery of IT resources and applications via the Internet with pay-as-you-go pricing.

The Basics

Whether you are running applications that share photos to millions of mobile users or you’re supporting the critical operations of your business, the “cloud” provides rapid access to flexible and low cost IT resources. With cloud computing, you don’t need to make large upfront investments in hardware and spend a lot of time on the heavy lifting of managing that hardware. Instead, you can provision exactly the right type and size of computing resources you need to power your newest bright idea or operate your IT department. You can access as many resources as you need, almost instantly, and only pay for what you use.

How Does it Work?

Cloud Computing provides a simple way to access servers, storage, databases and a broad set of application services over the Internet. Cloud Computing providers such as Amazon Web Services own and maintain the network-connected hardware required for these application services, while you provision and use what you need via a web application.

Six Advantages and Benefits of Cloud Computing

Trade capital expense for variable expense - Instead of having to invest heavily in data centers and servers before you know how you’re going to use them, you can only pay when you consume computing resources, and only pay for how much you consume.

Benefit from massive economies of scale icon - Benefit from massive economies of scale - By using cloud computing, you can achieve a lower variable cost than you can get on your own. Because usage from hundreds of thousands of customers are aggregated in the cloud, providers such as Amazon Web Services can achieve higher economies of scale which translates into lower pay as you go prices.

Stop guessing capacity - Eliminate guessing on your infrastructure capacity needs. When you make a capacity decision prior to deploying an application, you often either end up sitting on expensive idle resources or dealing with limited capacity. With Cloud Computing, these problems go away. You can access as much or as little as you need, and scale up and down as required with only a few minutes notice.

Increase speed and agility - In a cloud computing environment, new IT resources are only ever a click away, which means you reduce the time it takes to make those resources available to your developers from weeks to just minutes. This results in a dramatic increase in agility for the organization, since the cost and time it takes to experiment and develop is significantly lower.

Stop spending money on running and maintaining data centers icon - Focus on projects that differentiate your business, not the infrastructure. Cloud computing lets you focus on your own customers, rather than on the heavy lifting of racking, stacking and powering servers.

Go global in minutes - Easily deploy your application in multiple regions around the world with just a few clicks. This means you can provide a lower latency and better experience for your customers simply and at minimal cost.

Types of Cloud Computing

Cloud computing has three main types that are commonly referred to as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Selecting the right type of cloud computing for your needs can help you strike the right balance of control and the avoidance of undifferentiated heavy lifting.

Source: http://aws.amazon.com/what-is-cloud-computing/