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What is Cloud Computing?

Cloud computing is the on-demand delivery of IT resources over the internet. Instead of buying, owning, and maintaining physical data centers, you access computing power, storage, and databases from a cloud provider like AWS, Azure, or Google Cloud.

Analogy: On-premise IT is like buying a generator for your home. Cloud computing is like plugging into the city power grid — you pay for what you use, never worry about maintenance, and can scale up instantly.


flowchart TB
subgraph OnPrem["On-Premises"]
Buy[Buy servers] --> Setup[Setup & configure]
Setup --> Maintain[Maintain & repair]
Maintain --> Scale["Scale (buy more)"]
Scale --> Pay["Pay upfront<br/>High fixed cost"]
end
subgraph Cloud["Cloud Computing"]
Choose["Choose resources<br/>(console/CLI)"] --> Provision["Provision in minutes"]
Provision --> Use["Use & pay<br/>per hour/request"]
Use --> Scale2["Auto-scale<br/>up or down"]
Scale2 --> Pay2["Pay only for<br/>what you use"]
end
style OnPrem fill:#ef4444,color:#fff
style Cloud fill:#059669,color:#fff
AspectOn-PremisesCloud
Cost modelBuy hardware upfrontPay-as-you-go
ScalingBuy & install new serversAuto-scale with a click
MaintenanceYour team handles everythingProvider handles hardware
SpeedWeeks to provisionMinutes to provision
Global reachBuild your own data centersUse provider’s global network

flowchart LR
subgraph IaaS["IaaS — Infrastructure"]
I1["You manage: apps, data, runtime<br/>AWS manages: servers, storage, networking"]
I2["Example: EC2 virtual machines"]
end
subgraph PaaS["PaaS — Platform"]
P1["You manage: apps & data<br/>AWS manages: runtime, OS, servers"]
P2["Example: Elastic Beanstalk, Heroku"]
end
subgraph SaaS["SaaS — Software"]
S1["You just use the app<br/>AWS manages everything"]
S2["Example: Gmail, Salesforce"]
end
IaaS --> PaaS --> SaaS
style IaaS fill:#3b82f6,color:#fff
style PaaS fill:#7c3aed,color:#fff
style SaaS fill:#059669,color:#fff
ModelWhat You ManageWhat Provider ManagesExample
IaaSApps, data, runtime, OSServers, storage, networking, virtualizationAWS EC2, Google Compute Engine
PaaSApps, dataRuntime, OS, servers, storage, networkingElastic Beanstalk, Heroku
SaaSNothing — just use itEverythingGmail, Slack, Salesforce

BenefitWhat It Means
Pay-as-you-goOnly pay for what you use, no upfront costs
Auto-scalingAutomatically add/remove resources based on demand
Global reachDeploy in data centers around the world
High availabilityBuilt-in redundancy and failover
SecurityProviders invest billions in security
Innovation speedExperiment with new services in minutes

ProviderKey StrengthBest For
AWSMost services, mature ecosystemEverything
AzureMicrosoft integration, enterpriseEnterprise .NET shops
Google CloudData/AI, KubernetesData-heavy apps, ML

  • Cloud computing = renting IT resources instead of buying them
  • IaaS gives you raw servers; PaaS gives you a platform; SaaS gives you ready software
  • Key benefits: pay-as-you-go, auto-scaling, global reach, high availability
  • AWS is the largest cloud provider with the most services
  • The cloud lets you experiment cheaply and scale globally — a game-changer for startups