Cloud computing is a procedure which involves the transfer of data and applications into the cloud. This enables businesses to access these from anywhere they have an internet connection. Businesses can reduce costs by switching to cloud computing and sizing their infrastructure up and down as required. This allows companies to develop more easily without waiting for new technology to be released.

The most popular way enterprises use the cloud is hosting their applications on cloud service provider’s servers. This type of cloud computing is called Software-as-a-Service (SaaS). SaaS providers host all of the middleware, hardware and application software needed for running an enterprise app in their data centers. They typically offer this service on a per-use basis, meaning that the client only pays for what they use.

Another popular cloud service is called Infrastructure-as-a-Service (IaaS). With IaaS companies rent the storage and hardware needed to build their own software in a data center that’s maintained by the cloud computing provider. It’s similar to renting an apartment in which you only pay for the rooms that you use, for instance the kitchen when you have dinner or the bedroom when you go to bed.

Finally, a newer cloud service called Function-as-a-Service (FaaS) is emerging that offers even more scalability and agility for business users. FaaS breaks cloud applications down into smaller components that are only activated when they’re needed, so that you can pay for the resources you need only when you require them.

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