Cloud computing is renting resources, like storage space or CPU cycles, on another company's computers. You only pay for what you use. The company providing these services is referred to as a cloud provider. Some example providers are Microsoft, Amazon, and Google.

The cloud provider is responsible for the physical hardware required to execute your work, and for keeping it up-to-date. The computing services offered tend to vary by cloud provider. However, typically they include:

• Compute power - such as Linux servers or web applications
• Storage - such as files and databases
• Networking - such as secure connections between the cloud provider and your company
• Analytics - such as visualizing telemetry and performance data

The difference is that you don't have to buy any of the hardware or install the OS. The cloud provider runs your virtual machine on a physical server in one of their datacenters - often sharing that server with other VMs (isolated and secure). With the cloud, you can have a VM ready to go in minutes at less cost than a physical computer.

VMs aren't the only computing choice - there are two other popular options: containers and serverless computing.

Here's a diagram comparing the three compute approaches we've covered. (*)

(*) Microsoft Docs.

Benefits of cloud computing

It's +

+ cost-effective

+ scalable

+ elastic

+ current

+ reliable

+ global

+ secure