What is Cloud Computing? 

Cloud computing delivers resources such as storage, tools, and software via the Internet, enabling users to accomplish various tasks efficiently. It provides virtual machines, like servers, for running programs and offers collaborative platforms designed to help developers build applications similar to Google Docs but customized for development. 

Additionally, cloud computing offers ready-to-use software like Gmail or Microsoft 365, which doesn’t require installation or maintenance on individual devices. By leveraging the cloud, organizations can streamline processes, reduce complexity, and seamlessly access services without relying on local infrastructure. 

Why do organizations use cloud computing services? 

Organizations benefit from the ‘pay-as-you-go’ model, where they only pay for the resources they use instead of investing in additional infrastructure, eliminating the need for costly infrastructure purchases and upfront investments. This allows the delivery of on-demand computing services over the Internet and mitigates the barriers of limited resources and unpredictable demand. 

Leading public cloud service providers are Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure.

Deployment models 

In cloud computing, various deployment models define the specific setup of cloud service components and infrastructure customized to meet the unique requirements of enterprises. The three main deployment models in cloud computing are: 

Types of deployment models in cloud computing

1. Private cloud

A dedicated ecosystem of resources and services unique to an organization. This is a protected cloud set up by a business, and its resources are managed either by itself or by a trusted third-party service provider. It provides customization, greater control over the infrastructure access system, higher security, and enhanced compliance as the resources are not shared, so the organizations can deploy tailored security protocols and align with compliance frameworks. 

The setup cost of this model is higher than other models, but it can be easily incorporated with existing systems. 

2. Public cloud

In this model, the various resources and cloud services are available to the public over the Internet and are shared across multiple organizations, i.e., they utilize the multi-tenant model and, therefore, facilitate access to applications and data without being physically present, making it more convenient.  

The services are managed by trusted vendors, reducing the load of maintaining the software and hardware of the organizations. It is based on a pay-as-you-go model and can be easily scaled up or down as per the enterprises’ requirements, therefore making it cost-efficient and supporting quick deployments. 

One example of a public cloud is Google, which uses the cloud to run some of its widely used applications like Google Docs, Google Drive, and YouTube. 

3. Hybrid

In this model, organizations can utilize combinations of benefits offered by both the private cloud and public cloud models. Therefore, this allows data and applications to be shared seamlessly between the private and public clouds to give enhanced flexibility and scalability. For example, sensitive data can be kept in the private cloud for greater security and enhanced control, while workloads requiring high scalability can be managed over the public cloud. 

Scaling resources enhances private cloud control and increases its public cloud capacity. So, the response to changing business requirements is quick in this model as the workload can be moved between ecosystems as needed. It offers disaster recovery and business continuity features by allowing backups so that organizations can bounce back in case of any mis-happenings. 

Architecture of cloud computing 

A cloud computing architecture is a blueprint for the components and subcomponents required in a cloud services delivery. It comprises various elements, and flexibility, scalability, and efficiency are the core definitions of these components. 

The architecture of cloud computing

1. The Front End

The front end in cloud computing architecture is known as the interface through which the users of the cloud services interact. There are two types of clients: 

• Thin clients: These are pure web-based customers that require a web browser to access cloud computing services. They are lightweight and easily portable, ideal for customers using basic functionalities with reduced hardware. They make an excellent choice for mobile and remote users.

• Fat Clients: These clients come fully packed with applications for performance aspects while providing optimal capabilities and experience to the users. These clients are used for resource-intensive activities such as data visualization or editing video, as well as carrying out advanced analytics.

User experience is critical here, as the interface between the user and the resource will play a very significant role in determining how effectively the user uses the resources and the services hosted in the cloud. 

2. Back-end Platforms

Cloud back end is the processing engine of cloud computing. It is responsible for the data management and computation power. The main components of a cloud back end include:  

• Servers are meant for application logic, processing user requests, and running workloads. Most of the present-day cloud servers employ virtualization technology to optimize performance and resource allocation.

• Another component is storage, which is a measure of efficiency and scalability in handling data storage types such as block, object, and file storage needed for various application requirements.

• Management Software allows resource allocation, monitoring, and orchestration for efficient operations and scalability. Last is the middleware, which acts as a bridge between applications and servers in terms of communication and data exchange.

3. Cloud-Based Delivery and Network

The networking and delivering services make up the cloud computing architecture. It allows the seamless delivery of services when needed and where required. It includes several components, one of which is the Internet; it provides worldwide connectivity and thus gives the user an opportunity to access cloud services from anywhere in the world. The Intranet makes communication fast and secure within the private cloud of an organization, while Intercloud serves the provision of interoperability and integration with various cloud environments like a hybrid or multi-cloud setup for potential smooth collaboration. 

Moreover, Content Delivery Networks (CDNs) cache information nearer to users at edge locations for a speedy and reliable service. Also, dynamic network connectivity ensures a very fast, low-latency path with maximum secured communication between advanced technologies such as software-defined networking (SDN) and virtual private networks (VPNs). 

Characteristics of cloud computing 

Cloud computing has five major characteristics that were stated by the National Institute of Standards and Technology (NIST), each one revealing the various utilities and advantages that this technology, as a whole, can offer.   

1. On-demand self-service

An individual or an enterprise would initially invest in their IT infrastructure to fulfill their computing requirements, i.e., buying, configuring, and installing the systems in their environment. But now, with cloud computing, it is feasible to access the tools or applications and provision the cloud computing services such as applications, servers, or network storage with no need for interaction with the service providers as and when required without understanding the root technologies.

2. Broad network access

The cloud services can be accessed over the Internet, i.e., wirelessly, without being physically present with the system. This is a crucial characteristic that ensures that the resources can be used by using the internet connection from anywhere in the world and on any portable device ranging from mobile phones to tablets to laptops. As you know, bandwidth plays an important role in cloud computing services; it is, therefore, crucial in broad network access because it affects quality assurance.

3. Resource pooling

This essential feature of cloud computing facilitates the sharing of physical resources by utilizing a multi-tenant model for multiple customers. The customers can access the resources, be they physical or virtual, as they are dynamically allocated and deallocated based on the requirements. Examples of resources are storage, memory, or bandwidth.

4. Rapid elasticity

Cloud computing services can be elastically supplied and released for easier scaling up or down processes according to the demand, and sometimes, this can be done automatically. This ensures that customers can utilize the services in any quantity as they often appear unlimited and scale usage or capacity by using the cloud’s resources with no need to buy the hardware.

5. Measured service

Cloud systems are integrated with metering abilities for transparency between the customer and the service provider to automate control and optimize the resources of the cloud. The various services, such as storage, bandwidth, etc., are monitored and measured as the cost of services is calculated based on the pay-as-you-go model.

These features demonstrate the transformative impact of cloud computing in present-day IT infrastructures and resource management. 

Types of cloud services 

Cloud services fall into three broad categories, wherein each has unique functionalities that offer different advantages to users. 

Types of cloud services

1. SaaS (Software as a Service)

This type of service provides access to a wide range of applications and services over the Internet as and when needed and pay for only the services you use without the need to worry about the cost of licenses and the hassle of installations. This delivery model is becoming popular due to the increased efficiency, flexibility, and cost-saving. An example of SaaS is Google Workspace, which provides access to multiple productivity tools, such as Gmail and Google Docs, through a cloud-based infrastructure.

2. PaaS (Platform as a Service)  

It provides a platform and an environment for developers, allowing them to deploy and manage applications. The PaaS model includes a development framework that includes tools, libraries, and APIs that developers can use to develop their customized applications and a managed infrastructure system to allow developers to focus on the development and not worry about the management of servers, networking, or storage.  

Therefore, this type of cloud service allows them to develop applications faster and more efficiently due to built-in tools and services. An example is Heroku, which provides developers with the platform they need to deploy and scale their applications. 

3. IaaS (Infrastructure as a Service)

This type of cloud service provides virtual computing resources over the Internet, helping businesses avoid the need for physical hardware. System administrators or network architects generally use it to access VMs or other resources for storing and networking. These resources are flexible, allowing users to manage and adjust them as needed based on their requirements.

This type of cloud service allows enterprises to get access to advanced technologies such as machine learning and allows them to focus on their core competencies. For instance, AWS EC2 is a type of virtual server that delivers an infrastructure in the form of easily scalable cloud-based servers.   

4. FaaS (Function as a Service)

It provides event-based execution for the developers so that they can run code in response to events without worrying about servers or infrastructure management. It enhances efficiency with its principle “pay-as-you-run” pricing, meaning you pay only for the computing resources you have consumed. FaaS is also dimensionless and can handle the variable incoming workloads effortlessly while providing agility in both development and deployment in serverless environments. 

FaaS model in cloud computing

Now, let’s dive deep into the architecture of software when it is provided as a service to a customer – organization, or any user. 

Single-Tenant vs Multi-Tenant

The SaaS is based on either a single-tenancy model or a multi-tenancy model. 

Benefits of cloud computing 

Some of the benefits of using cloud computing are as follows: 

1. Pay-as-you-go model 

Cloud computing facilitates a pay-as-you-go model that allows companies to pay only for the services they use, resulting in cost savings. This model mitigates the need to invest heavily in infrastructure systems. 

2. Accessibility on-the-go  

This means that the users of an organization can access the data stored in the cloud from anywhere remotely by simply authenticating themselves. This feature allows easy access to resources, ensuring that they are updated with the latest information, leading to increased productivity. 

3. Advanced collaboration 

When an organization uses cloud services, teamwork is enhanced as teams can easily share and access information, enabling effective collaboration. This easy access to information by the different teams is facilitated by the unified storage on the cloud so that individuals can effectively and easily collaborate to work on projects, resulting in high productivity. 

4. Backups and Disaster Recovery 

Cloud service providers provide the feature of backing up data. This is done so that the data can be accessed when there is a mishap of data loss or failure due to cyberattacks, sudden outages, etc. Backups allow organizations to return to their previous state if a disaster occurs or any unpredicted disruption occurs. 

5. Reduced maintenance efforts 

Organizations can reduce their overhead of maintenance, updating, and security patches by using cloud computing services. Cloud service providers manage and maintain their own infrastructure, allowing organizations to focus on their operations without worrying about system maintenance. This allows IT teams not to allocate time and resources for maintenance purposes and allows them to work on their projects, analysis, etc, effectively. 

6. Flexibility and Scalability 

Cloud service providers are flexible as they allow auto-scaling of resources depending on the workload and adjust the various attributes for high performance, such as power, storage, and bandwidth. 

Cloud computing service providers enable global reach by hosting applications and services in multiple locations, allowing organizations to deploy and combine them as needed. 

Use cases of cloud computing 

Cloud computing has transformed business operations by offering applications that enhance efficiency, enable scalability, and foster innovation.  

1. Application Hosting and Data Backup  

A key use case of cloud applications is application hosting and deployment, allowing organizations to run applications on virtual servers and eliminate the need for capital investment in physical infrastructure. This ensures that the organization can scale to meet the changing demands of users. Additionally, cloud-based data backup and disaster recovery plans provide secure storage and quick restoration of business data, reducing operational burdens and minimizing downtime. 

2. Enhancing Machine Learning and AI Capabilities 

Cloud capabilities boost ML and AI capabilities and enable organizations to develop applications such as chatbots, image recognition systems, and predictive analytics tools. In addition, it allows teams from across different disciplines to access AI tools and pre-built models, thus facilitating collaboration and speeding up innovation. 

3. Content Delivery and E-Commerce Scalability 

Cloud computing plays a critical role globally by reducing the need for Content Delivery Networks (CDNs), improving the efficiency of content streaming, and reducing latency. It also serves as the backbone for the Internet of Things (IoT), managing and analyzing data from connected devices to enable real-time monitoring, predictive maintenance, and automation across industries.

Businesses leverage cloud-based collaboration tools like Microsoft 365 and Google Workspace to keep teams connected and productive from anywhere. E-commerce platforms and online businesses benefit from cloud computing by utilizing its on-demand hosting capabilities, which allow them to scale resources based on fluctuating traffic and provide a personalized shopping experience. 

4. Gaming and Software Development 

The other area that has found considerable interest in the cloud is gaming, through cloud gaming services that promise near-ultimate gaming experience within the limitations of the consumer’s setup. Also, it has become flexible and cheaper in the software development and testing processes, allowing developers to write applications at ease and test them before rolling out using cloud-based environment features. 

Challenges of cloud computing 

Cloud computing offers significant advantages. However, it faces challenges and issues. 

1. Multi-cloud environments issues 

Multi-cloud environments refer to the scenario where an organization uses services from different providers. This introduces challenges of configuration errors, difficulty in governing the data, and detailed control over the permissions for resource usage. Therefore, to resolve these issues, it is important to use automated monitoring tools and implement strong data management policies. 

2. Dependency on vendors 

All the services used by an organization are highly dependent on the operability of the vendor. If the vendor is down due to an issue, the users won’t be able to access the data and resources on the cloud. This implies an organization is dependent on the vendors’ availability and continuity. 

3. Privacy and security issues 

There are various concerns in terms of data security and privacy as the sensitive data is stored on the cloud, and not all cloud service providers guarantee 100% data privacy.

There are various factors that influence the security of the cloud, including proper identity access management, the security of the APIs used, cloud misconfigurations, and malicious insider threats. 

4. Interoperability challenges 

As the complexity of tools, platforms, and systems grows, it becomes more challenging for organizations to switch applications between multiple cloud environments. There are several obstacles when it comes to interoperability, especially in managing applications and services in the target cloud, handling encryption, and configuring networks in the new cloud environment. 

5. Unavailability 

If vendors remain unavailable, the organization’s reliance on them decreases, forcing the organization to seek additional resources to meet business needs. As a result, if vendors fail to provide services on time or compromise data security, it undermines reliability and creates significant concerns for the organization. 

6. Insufficient knowledge and expertise 

A major challenge faced by cloud companies is the shortage of individuals with the required technical skills and expertise. It is tedious for cloud providers to keep pace with emerging tools and techniques. Enterprises seek to hire well-qualified professionals to effectively use the tools that suit them according to their needs. 

7. High network dependency 

All cloud services and applications require sufficient network bandwidth to efficiently transmit data between cloud servers. Unexpected interruptions in the cloud can lead to business losses, so organizations must ensure high bandwidth and performance to avoid such disruptions. 

8. Compliance challenges 

Compliance is one of the crucial aspects of cybersecurity, which helps avoid financial losses, preserve data security, and mitigate legal consequences.  This concern may result in organizations encountering compliance conflicts with cyber state laws and regulations whenever a user wishes to transfer data from local machines or servers to the cloud. 

Ensure compliance with cryptographic standards

NIST (National Institute of Standards and Technology)

NIST SP 800-53 Rev. 5 include annexures like Access Control (AC), where it is mentioned that there should be role-based access and multifactor authentication in securing the resources in the cloud, and System and Communications Protection (SC), ensuring encryption of data and secure communications in cloud environments.  

The Audit and Accountability (AU) annexure mandates the need to keep detailed logs of activities in the cloud to aid in the discovery of anomalies and forensic investigations. Further, this NIST Cybersecurity Framework (CSF) has categories like Identity (ID) for maintaining an inventory of cloud assets and assessing risks related to them, and Protect (PR), which denotes the need for encryption and Identity and Access Management (IAM) solutions in protecting data. 

PCI DSS (Payment Card Industry Data Security Standard)

Annexures of PCI DSS, such as Requirement 3, specify that cardholder data retained in the cloud must be encrypted Requirement 4 further states that such data must be transmitted securely using either TLS 1.2 or above Requirement 10 mandates detailed logging and monitoring of accesses to payment systems in the cloud, while Requirement 12 calls for the establishment of a shared responsibility model to clearly define the security roles. 

GDPR (General Data Protection Regulation)

Article 33 states that a cloud computing customer must have mechanisms that detect and report data breaches within seventy-two hours and maintain logs for demonstrating compliance.  

NIS2 Directive (EU)

Article 21 includes the specification of incident response plans adapted for cloud-based services. This ensures that all cybersecurity incidents associated with the cloud can adequately be detected and mitigated, with reduced downtime and the safeguarding of sensitive data. 

DORA (Digital Operational Resilience Act)

The ICT Risk Management Annexure states that organizations carry out periodic risk assessments and have stringent mitigation measures when cloud dependency is concerned. 

How can Encryption Consulting Help? 

Encryption Consulting has been designing customized solutions for various organizations to adopt cloud computing practices in a manner that fits their unique security needs well. Our encryption advisory services help businesses keep their data secure by using the top three cloud service providers: Microsoft Azure, AWS, and Google Cloud Platform. Our expertise in encryption assessment, key management, and compliance evaluation enables organizations to achieve enhanced security posture. 

We help organizations select the perfect model for cloud key management that fits their needs-whether that means keeping encryption keys locked up away in secure hardware such as HSMs, controlling entirely within their environment, or even leveraging the provider’s solution with extra safeguards. Furthermore, Encryption Consulting specializes in assessing compliance in multi-cloud environments, ensuring that organizations meet regulatory requirements. 

Conclusion 

Cloud computing, which provides scalable, adaptable, and affordable solutions across industries, has completely changed how businesses approach technology. Businesses can make well-informed decisions on their cloud strategy by knowing the basics of cloud computing, investigating service models such as SaaS, and recognizing the differences between single-tenancy and multi-tenancy. Cloud computing is widely used because of its many advantages. To fully harness its potential, addressing issues such as security, compliance, and the complexities of cloud management is essential.