The Vation Ventures Glossary

Cloud Computing - Definition, Explanation, and Use Cases

Cloud computing is a term that has become ubiquitous in the world of information technology and enterprise technology. It refers to the delivery of computing services over the internet, rather than using local servers or personal devices. These services can include servers, storage, databases, networking, software, analytics, and intelligence. The aim of cloud computing is to offer faster innovation, flexible resources, and economies of scale.

Cloud computing has revolutionized the way businesses operate by providing them with a way to access and store data from anywhere, at any time. It has also made it possible for businesses to reduce their operational costs by eliminating the need for large-scale hardware investments. Furthermore, cloud computing services are typically pay-as-you-go, meaning businesses only pay for the services they use, helping them to manage their operational costs more effectively.

Definition of Cloud Computing

Cloud computing is defined as the practice of using a network of remote servers hosted on the internet to store, manage, and process data, rather than a local server or a personal computer. This definition encompasses a wide range of services, including software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS).

These services are typically provided by third-party companies who own and maintain the physical infrastructure. Users can access these services and manage their data through a web browser, without the need for any specialized hardware or software.

Software as a Service (SaaS)

Software as a Service, or SaaS, is a cloud computing model in which a third-party provider hosts applications and makes them available to customers over the internet. SaaS is often referred to as "on-demand software" and is usually priced on a pay-per-use basis or using a subscription fee.

In the SaaS model, users do not have to worry about the installation, setup, and running of the application, as the SaaS provider takes care of all these. Examples of SaaS applications include Google Apps, Salesforce, and Microsoft 365.

Platform as a Service (PaaS)

Platform as a Service, or PaaS, is a cloud computing model that provides customers with a platform and environment to develop, manage, and deliver applications. The PaaS provider hosts the hardware and software on its own infrastructure, freeing developers from the need to install in-house hardware and software to develop or run a new application.

PaaS services offer a high level of abstraction, which can simplify the development process for new applications. Examples of PaaS include Google App Engine, Microsoft Azure, and IBM Bluemix.

Infrastructure as a Service (IaaS)

Infrastructure as a Service, or IaaS, is a cloud computing model where a third-party provider hosts hardware, software, servers, storage and other infrastructure components on behalf of its users. IaaS providers also offer a range of services accompanying that infrastructure like billing, log access, security, load balancing, and clustering, as well as storage resiliency, such as backup, replication, and recovery.

These services are important for businesses that are growing rapidly or have fluctuating demands, as it allows them to scale their infrastructure up and down quickly without the need to purchase and install expensive upgrades to their in-house data center. Examples of IaaS include Amazon Web Services (AWS), Microsoft Azure, Google Compute Engine, and IBM Cloud.

Benefits of Cloud Computing

Cloud computing offers a number of benefits over traditional computing models. One of the main benefits is cost efficiency. Since users only pay for the services they use, they can avoid the capital expense and complexity of buying and managing their own physical servers.

Another major benefit is scalability. Cloud computing allows businesses to easily upscale or downscale their IT requirements as and when required. This is particularly beneficial for businesses with growing or fluctuating bandwidth demands.

Flexibility and Mobility

Cloud computing provides businesses with a high degree of flexibility and mobility. It allows users to access their work from anywhere, at any time, and from any device with an internet connection. This is particularly beneficial for businesses with remote employees or for those who need to access their data while on the move.

Furthermore, many cloud services offer mobile apps, meaning that users are not tied to a specific location or device to access their data. This flexibility can lead to increased productivity, as employees can work from anywhere without the need to travel to a specific location.

Disaster Recovery

Another significant benefit of cloud computing is that it can help businesses with their disaster recovery plans. Traditional disaster recovery methods can be expensive and complex, requiring a significant amount of data replication, infrastructure, planning, and often a secondary data center.

Cloud computing, on the other hand, can be used to back up data in more cost-effective and efficient ways. The data can be stored in different locations around the world, ensuring it is safe in the event of a disaster. Furthermore, the data can be accessed quickly and easily in an emergency, helping businesses to recover more quickly.

Use Cases of Cloud Computing

Cloud computing has a wide range of use cases across various industries. In the healthcare industry, for example, cloud computing can be used to store and access patient records, conduct telehealth appointments, and facilitate medical research. In the retail industry, cloud computing can be used for everything from inventory management to customer relationship management.

In the education sector, cloud computing can be used to deliver online courses and testing, as well as for research and collaboration. In the finance sector, cloud computing can be used for secure transactions, fraud detection, and data analysis.


In the healthcare industry, cloud computing has the potential to revolutionize the way patient care is delivered. Medical records can be stored in the cloud, allowing healthcare providers to access patient information from anywhere. This can improve the quality of care, as healthcare providers can access a patient's medical history, test results, and other relevant information more quickly and easily.

Furthermore, cloud computing can facilitate telehealth services, which allow patients to consult with healthcare providers remotely. This can be particularly beneficial for patients in remote areas, who may not have easy access to healthcare facilities. Additionally, cloud computing can be used to store and analyze large amounts of medical research data, which can lead to new discoveries and advancements in medicine.


In the retail industry, cloud computing can be used to improve efficiency and customer service. For example, cloud-based inventory management systems can help retailers keep track of their stock levels in real-time, reducing the risk of stockouts or overstocking.

Cloud computing can also be used to analyze customer behavior and preferences, allowing retailers to personalize their marketing efforts and improve customer service. Furthermore, cloud-based point-of-sale (POS) systems can streamline the checkout process, making it faster and more efficient for both customers and staff.


Cloud computing has also found a place in the education sector, where it is used for a variety of purposes. For example, many educational institutions use cloud-based learning management systems (LMS) to deliver online courses. These systems can provide students with access to learning materials from anywhere, at any time, making education more accessible.

Furthermore, cloud computing can be used for testing and assessment, allowing educators to administer tests and quizzes online, and automatically grade them. This can save educators a significant amount of time, allowing them to focus more on teaching and less on administrative tasks.


In the finance sector, cloud computing can be used to secure transactions, detect fraud, and analyze data. Financial institutions can use cloud-based systems to securely process transactions, ensuring that customer data is safe. These systems can also help detect fraudulent activity more quickly, protecting both the institution and its customers.

Furthermore, cloud computing can be used to analyze financial data. This can provide financial institutions with valuable insights, helping them to make more informed decisions. For example, they can use cloud-based analytics to identify trends and patterns in customer behavior, which can inform their marketing and customer service strategies.


Cloud computing has transformed the way businesses operate, providing them with the ability to store and access data from anywhere, at any time. It offers a range of benefits, including cost efficiency, scalability, flexibility, and improved disaster recovery. Furthermore, it has a wide range of use cases across various industries, from healthcare to retail, education, and finance.

As technology continues to evolve, the role of cloud computing in business is likely to grow. Businesses that adopt cloud computing can expect to see improvements in efficiency, productivity, and customer service, as well as a reduction in operational costs. Therefore, understanding cloud computing and its benefits is crucial for any business looking to stay competitive in the digital age.