There is no doubt that Cloud Computing has revolutionized the software industry and improved everyones lives. This blog, will describe what cloud computing is, how it’s enabled the software industry and improved lives worldwide.

What is “The Cloud”?

The Cloud is a set of computer services that major Cloud Providers like Amazon Web Services (AWS), Google, Microsoft (Azure) provide for rent.

These are typically “pay as you go”, which means that if you use more compute in one month you pay more, if it decreases the next month, you pay less.

Basic cloud services revolve around compute services, database services, identity management, storage and networking. Each provider has their own unique spin on these services, so it’s up to the consumer to decide which provider is the best fit for their needs.

Theoretically, it is possible for a company to run their application on more than one provider, but that requires multiple configurations and software changes. In reality, most companies run primarily on one provider, with some limited usage of the other providers.

Benefits of the Cloud

It is hard to overstate the economic benefits of the cloud.

Prior to the cloud, business would have to anticipate their computer needs, buy expensive hardware and set it up in a datacenter. If they overestimated, the spent too much capital. If they underestimated, then they would have to scramble to buy more capacity and set it up.

New companies are typically “Cloud first” which means they never bought hardware or built out a datacenter. Existing companies have been migrating their existing applications to the Cloud to reap the operational and budgetary benefits.

Essentially, Cloud Providers build and maintain massive datacenters and then rent out those services to companies. Since the Provider have such large scale, they can squeeze costs and pass those savings onto the companies that use their services.

Second advantage, Cloud Providers have grown their product offerings to a dizzying array of services.

This means that most basic software configurations come virtually pre-packaged for use, saving the consumer valuable time and complexity.

How the Cloud has Changed Our Lives

The combination of the Cloud, better networking and smart devices have provided unbelievable benefits to people all over the globe. From communication services, financial services, access to healthcare, etc. For those who are pre-millenials, we have a full appreciation of these benefits!

Virtually all apps and websites on the Internet are hosted on the Cloud. If you are using any service on the Internet, you are almost certainly interacting with one of the Cloud Providers.

Dangers of the Cloud

Generally speaking, the major Cloud Providers have been very reliable and taken precautions to protect the companies which run their services.

For most people, there are two main issues to consider.

The first is all too well-known to us: identity and information theft.

Since Cloud Providers support hundreds of customers, which in turn support millions of end-users, Cloud Providers and their applications are prime targets for hackers.

It is very easy for programmers to make a mistake when building a Cloud application. Hackers are constantly scanning the Web for those mistakes, gain access into the Cloud Provider and steal that company’s information.

The second big danger is that a handful of top Cloud Providers service the majority of the Internet. Up to this point, we have not experienced a complete outage. Generally, they have been regional and lasted for a few hours

However, if one of those Providers took a serious outage, there would be huge repercussions.

A good analogy would be to think about all phones being run by a handful of phone companies. If any one of those went down, it would cause massive communication disruption.

On Balance the Cloud Has Helped Us All

In the same way cellular phones has changed our lives, the Cloud Providers have introduced similar levels of change by powering the Internet.

The ability for Cloud Providers offer “pay as you go” services has saved companies trillions of dollars and made computing services more affordable. As an example, I am writing this blog by paying relatively modest service fees.

Like any transformation industry that is dominated by a few major players, it is also important for us to understand the risks!