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There are a wide range of benefits to using technology, specifically computers, for creating and storing data and information. A massive drawback of using technology this way, however, is the amount of storage required to keep this vital information around. Thankfully for organizations of all sizes, cloud computing was created to help solve this issue.

Cloud computing has a wide range of benefits and drawbacks, but has become instrumental in how our current technology operates today. To effectively utilize technology in the modern age, you need to have at least a basic understanding of how the cloud works and some of the various costs associated with it. In this article, this is exactly what we will be trying to provide, so let’s start with the costs.

Expenditures

When considering the costs of cloud computing, there are two types of expenditures to keep in mind: Capex and Opex.

Capex, or capital expenditures, refers to large investments such as buildings, property, or hardware. On the other hand, Opex or operating expenses refer to smaller daily costs such as employee salaries and rent. How does this apply to cloud computing? Well, to benefit from it, you must take on new expenses of both types.

To utilize cloud computing at all, you’ll need the core hardware, somewhere to store it all, equipment for its upkeep, and so much more—all of these expenses are considered Capex. As for the Opex expenses, you’ll need IT techs to maintain, upgrade and possibly even install the hardware while also keeping up with the latest software and industry trends.

Once you understand and know you can take on these costs, you can begin to wrap your head around the next part: the different cloud types.

Types of Cloud: Public, Private, and Hybrid

There are three different types of cloud computing: public cloud, private cloud, and hybrid cloud. Understanding these types will allow you to select the right kind for your work, which will make your future business ventures more successful.

Public cloud services can be thought of as an apartment complex. The building or cloud service, in this case, is owned by one company that oversees the maintenance and other upkeep while renting space out to other companies.

These other companies, which can be thought of as tenants, pay a subscription fee to gain and maintain access to the service and the data they have stored there. All of these “tenants” share the same infrastructure, but use it for their own purposes. This type of cloud can be beneficial, as you don’t need to own all of the hardware or IT technicians required to set up and maintain the service, but it won’t be optimized for your needs which can cause some problems later down the line.

If the public cloud is an apartment complex, then the private cloud is a house you purchased. Instead of relying on someone else’s hardware and infrastructure, you rely on the servers you own and maintain yourself.

While this would result in a higher cost on your end since you’d need more IT techs and equipment alongside the space and hardware to run it, it would result in you having complete control over it. Keep in mind that you may need a private cloud solution depending on what your business does and the regulations surrounding it.

Many companies use a combination of both of these cloud types, creating a third type: the hybrid cloud, where some of the data and hardware is handled on your end, and some of it’s handled by a third party. The most difficult part of this system is ensuring that both types can communicate with each other somehow. Once accomplished, however, you’ll have extra security and flexibility.

Now you understand the different types of cloud and the different types of expenditures you’ll encounter on your venture, but you still may be asking yourself one question: why is cloud computing so important? Let’s explain a few of the reasons why.

Why Cloud Computing Is So Important

Cloud Computing is important for businesses of all sizes for many reasons. For one, it saves you money since you only pay for the space you use. Another key reason why it’s important is the security that it can provide.

This benefit works on two fronts: on the one hand, cloud computing offers many security features alongside centralized management and automatic maintenance while it also backs up your data. For example, let’s say your PC just stops working one day. Well, if you had it connected to the cloud, most, if not all, of your data would be saved and easily retrieved.

Another massive benefit is the ease of scaling up. As your business grows, you’ll need more and more storage. Before cloud computing, this expansion effort would be costly, frustrating, and time-consuming—with it, however, it's simple and easy to do quickly.

While there are more intricacies to cloud computing, such as different services, we’ve only covered a small spectrum of what it entails here today. Hopefully, with all of this information in mind, you’ll be able to better use cloud computing to your advantage and help your business grow, succeed, and thrive.

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