What Is Enterprise Cloud Computing and How to Use It for Business Purposes: Detailed Guide

Key takeaways

• • Enterprise cloud computing services help businesses store, manage, and process information, as well as host apps.
  • You may need an enterprise cloud service if you own a growing startup, a big multinational company, a tech or e-commerce business, or a company from any other sector that has to deal with large data volumes.
  • Enterprise cloud computing’s main advantages are flexibility, scalability, high security, cost-efficiency, 24/7 access to the data, and hardware independence.
  • Implementing cloud storage in an enterprise requires careful planning and staff training. Nevertheless, it’s not hard to do — determine your needs and find a provider that will cover them.

What is an enterprise cloud

Enterprise cloud computing services for businesses are designed to help companies manage and process data and host applications. They store and process information like photos, videos, music, documents, spreadsheets, reports, user data, etc.

Services are provided over the Internet, typically on a pay-as-you-go basis. Business executives don’t need to rent offices for data centers or purchase hardware, making enterprise cloud computing a cheaper alternative to privately owned data storage.

The computing resources are based on scalable, flexible, and secure cloud infrastructure, tailored to the needs of large organizations. Users can create folders and repositories, move files between directories, grant access to selected team members, allow file editing, or restrict it.

Moving data to cloud storage is like uploading files to a website. In fact, it’s uploaded to multiple servers, which ensures that if one server fails, the data will still be available and ready to go. Enterprise clouds are focused on meeting the compliance, security, and performance requirements of enterprises.

Who needs an enterprise cloud solution

You may realize that you require a professional enterprise cloud computing system simply based on the fact that your personal drive has run out of space, and you can’t give access to all members of your team or department.

Generally, working with data today is not about USB drives and hard disks. Sending files in messengers and saving hundreds of copies can also be inconvenient. So, almost any company will need a data warehouse, but these in particular:

• • Large enterprises. Organizations with complex IT needs, large amounts of data, and extensive app portfolios use enterprise cloud services to manage their operations.
  • Growing businesses. Companies experiencing rapid growth turn to cloud services to scale their IT infrastructure quickly without a significant upfront investment.
  • Global businesses. Organizations with a worldwide presence use cloud services to ensure consistent performance and availability across regions. The same is necessary for their staff members working remotely.
  • Tech companies. Firms in the tech industry rely on cloud services for developing, testing, and deploying enterprise apps. They benefit from the flexibility of cloud platforms.
  • E-commerce. Businesses in retail take advantage of cloud services when handling peak loads during sales events, managing customer data, and running ad campaigns.
  • Companies in sectors such as healthcare, finance, and government require cloud services that provide robust security measures and compliance features to meet regulatory standards.

Enterprise cloud computing is a part of the current outsourcing tendency, only for data storage and computational power. If you’re looking for someone to outsource some of your workload, like the development of a new IT product, fill out our form below, and our expert will estimate your project for free.

Benefits of enterprise cloud solutions

Incorporating Enterprise cloud computing has many benefits. Here are some of the main ones.

Scalability and flexibility

Enterprise cloud computing makes it possible to scale computing capacity based on demand. For example, an online clothing store during a Christmas sale has to withstand a much greater load than at other times of the year, when unnecessary resources will only be a waste of money.

Cost-efficiency

Companies don’t have to buy and maintain physical servers, and instead just pay for cloud services on a usage-based model. This provides more flexibility and leads to significant cost savings. The provider takes on the expense of server maintenance, while a business only pays for what it needs, raising cost-effectiveness even further.

Round-the-clock access

All operations can be performed 24 hours a day, even at three o’clock in the morning, as long as you have an Internet connection. You’ll have access to company data from any device, which is valuable for remote workers and emergencies.

Hardware independence

For the most part, it’s easy to switch between a provider’s services, sometimes, even between providers themselves. As virtual servers and apps can be easily moved between different physical hardware without reconfiguration or compatibility issues, you can choose a provider that offers the most favorable terms.

Provider’s responsibility

Providers are taking full responsibility for the servers. They have to protect your data, maintain the physical part, and make sure that your data is available to you 24/7. It would take a lot of resources to achieve this level of stability for local servers.

Cloud providers also heavily invest in security measures that often exceed what individual companies could implement. Enterprise clouds feature robust disaster recovery systems to ensure business continuity. For security reasons, enterprises also use blockchain technologies.  

Competitive advantage

Considering all the benefits a business gets, cloud-based enterprise solutions bring a competitive edge. For example, faster deployment of apps and services enables quicker responses to market changes and customer demands. Your company also gets access to a global network of data centers for better performance and latency.

Finally, you can store and process any amount of data in a secure environment with constant access from anywhere. This works well for managing app development, analyzing financial statements, and organizing team collaboration.

What are the different types of enterprise cloud architecture

There are different types of clouds in the IT sky, some better suited to certain types of businesses than others.

Public clouds

A public cloud is a system for remote data storage and computing power available to multiple clients. All of the provider’s customers get their share. They set up the virtual servers they need there. Usually for a reasonable price, since they are only charged for the actual used capacity. For example, AWS (Amazon Web Service) is a cloud platform of this type.

Public cloud architecture is often the choice for startups. They reduce time-to-market on a tight budget. A low rate is available until the company gains more users and finds it worthwhile to upgrade to a more expensive and powerful payment plan, which is done with a few clicks. The main concern is data security. A public cloud infrastructure is potentially more vulnerable to theft of sensitive data than a dedicated private cloud.

Private clouds

Private cloud platforms are a virtual infrastructure that is wholly owned by a single customer. There are providers for private clouds as well, such as HPE (Hewlett Packard Enterprise).

Private data storage is the most secure. For example, telecommunications companies are required by law to store their data in private cloud environments. They are also convenient for distributed IT corporations, as they allow for better capacity management — more flexible capacity allocation to different tasks.

But they have downsides, too. They cost more because the entire solution is paid for in full. Deployment of this enterprise cloud architecture also takes longer because it must be tailored to the needs of the organization. Lastly, scalability in a private cloud is more problematic. Capacity can’t be blown up forever without suffering the expense of unnecessary equipment bought for some project and now standing idle.

Hybrid clouds

This enterprise cloud computing model involves using both private and external cloud resources. A company can keep critical databases and services in-house and run less essential operations in the public cloud. Microsoft, IBM, and many other market leaders offer and promote their own hybrid brands.

The main advantages of this approach include more control over sensitive data, easy scalability due to the public cloud, and low-cost testing of new developments. These benefits are offset by significantly higher costs. Hybrid infrastructures also involve interoperability between public and private spaces, and it requires top-notch technical staff to make it seamless.

Multi-cloud

A multi-cloud approach means that a company subscribes to multiple services from public clouds, choosing providers with optimal terms for each. In the last few years, multi-clouds have come into vogue. Data distribution is thought to give decentralization and greater security.

They are useful as they allow companies to be even more flexible without being tied to a single provider. In addition, they provide an extra level of reliability. If one of the servers fails, the rest can restore the data or the apps using their own resources. However, they place an additional burden on staff who have to communicate with multiple providers.The risk of data loss when transferring data between clouds is small, but it does exist.

Popular enterprise cloud computing services

A few words about cloud service market segments: IaaS, PaaS, and SaaS. You might have seen these three brothers mentioned somewhere before. The abbreviations stand for types of services one can expect from providers.

IaaS (Infrastructure-as-a-Service)

This segment includes the leasing of virtual storage and computing capacity. The provider is not involved in enterprise app development, nor does it provide a platform for that. It only takes care of servers’ security, confidentiality, and upgrading. Customers have to manage their cloud products themselves. In essence, they are the system administrators.

The IaaS model is standard in public clouds, offered by AWS, IBM Softlayer, GigaCloud, Hetzner Cloud, and other platforms.

PaaS (Platform-as-a-Service)

This set of solutions includes storage, processor, and memory, as well as useful services for a software product: databases, operating systems, application development, testing, and release functions. This is the way Microsoft Azure operates. Platform-as-a-Service solutions come with development programs, analytic services, and automation tools.

Under the PааS model, the customer does not need to administer the cloud infrastructure of the enterprise, while developers receive ready-made tools to accelerate and facilitate their work.

SaaS (Software-as-a-Service)

The provider offers comprehensive enterprise cloud services, administers them, and provides technical support if necessary. The model can be targeted at both the B2B sector and individual users.

If you use Google Cloud, you know what SaaS services for individuals are, but there are still all sorts of programs geared toward companies’ business needs. For example, enterprise cloud software such as cloud CRMs provides customer interaction by automating call answering, providing fast data processing, simplifying pricing, allowing for financial transaction reporting, and so on.

Enterprise cloud providers

Top cloud vendors operate under different access delivery models and vary in pricing, so the choice between them often depends on an organization’s needs. AWS, Microsoft Azure, and Google Cloud control 67% of global cloud infrastructure, leaving the smaller providers only 30%.

Amazon Web Services (AWS)

AWS is the largest cloud service provider, with over 34% of the global market share. It delivers over 200 cloud services across multiple industries and tech categories.

Amazon Web Services is best known for its emphasis on Infrastructure-as-a-Service offerings and highly scalable public clouds. The platform also supports private, hybrid, and multi-cloud deployments and has over 100 availability zones across 31 regions.

Microsoft Azure

Azure is the second-largest cloud provider with about 23% of the market share. It offers over 200 cloud services, including IaaS, PaaS, and SaaS solutions, as well as Edge and serverless computing.

The cloud computing platform is particularly appealing to enterprises using Microsoft ecosystems, as it boasts strong integration with Microsoft products like Office 365. Microsoft Azure has 116 availability zones around the world.

Google Cloud Platform (GCP)

Google Cloud Platform is the third-largest cloud provider and offers a range of cloud computing services similar to AWS and Azure. Still, it has peculiarities: GCP is known for its strength in big data, analytics, and machine learning capabilities. The cloud computing platform is popular with smaller businesses that use services such as Google Docs, Spreadsheets, Google Drive, Gmail, and YouTube.

IBM Cloud

IBM is one of the top cloud service providers that focuses on hybrid cloud solutions and enterprise-grade cloud services delivered as IaaS. It helps companies that want to simultaneously stick to their familiar on-premises environment and seamlessly migrate to digital infrastructure.

IBM Cloud has about 4% of the cloud computing services market and offers more than 170 products for private and hybrid cloud deployment.

Why enterprise cloud computing is suddenly everywhere

The pandemic was the time of a cloud revolution. Companies that had worked mostly offline had to turn to digital alternatives. And they had to do it quickly: staff training turned into distance learning, meetings became video conferences, paperwork went online, and much more. Cloud computing made this digital transformation possible.

Demand spiked. Public cloud services generated about $631.84 billion globally in 2023 and will continue to grow at an 18.49% rate until 2029. Despite the relatively rapid growth of cloud services, they still represent a small percentage of the global IT market.

The cloud services market is growing due to high demand and an influx of new providers. 20% growth is expected for 2024 and 22% for the next year. After a forced transition to the cloud over the past 4 years, trust in providers has increased. Many companies have become convinced that cloud computing is safer, more convenient, and cheaper than on-premises infrastructure. Businesses have realized the value of cloud computing, which has become the “new normal.”

Future trends in enterprise cloud computing

The future of enterprise cloud computing will be driven by several emerging trends, technology advancements, and evolving business needs.

• • Instead of just private and public clouds, companies are increasingly adopting hybrid and multi-cloud strategies to use the best features of multiple cloud providers and ensure security and flexibility.
  • With the rise of IoT, edge computing is used to process data closer to the source. It reduces latency, overload, and bandwidth usage. This could be important for autonomous vehicles, smart cameras, and industrial automation.

• • Cloud providers are integrating advanced AI and ML tools which enable businesses to derive more in-depth insights and automate routine processes. This will drive innovation in healthcare, finance, manufacturing, and retail.
  • Serverless architectures will continue to gain traction, allowing developers to build and deploy apps without managing the underlying infrastructure.
  • Providers are increasingly focusing on green computing practices to reduce their carbon footprint and promote sustainability. They will be investing in renewable energy sources, energy-efficient data centers, and carbon-neutral initiatives.

How to implement enterprise cloud strategy in your enterprise 

So, if you already like the benefits and your business needs to implement cloud storage, you need to think about a plan. There are four mandatory steps for successful cloud adoption.

1. Identify your storage requirements and cloud computing needs, including capacity, access frequency, and data security needs.
2. Select a cloud provider that meets your needs, for example, a public AWS cloud or a hybrid IBM solution. Considering factors like cost, scalability, and security.
3. Develop a migration plan, including timelines, approaches, and tools needed to move data from on-premises to the cloud. Ensure the data is backed up.
4. Train your team to use cloud storage solutions effectively and employ best practices for data management. Establish a feedback loop with stakeholders to make necessary improvements.

Summing up

Enterprise cloud computing is transforming how businesses operate, offering scalable, flexible, and cost-effective solutions with appropriate security measures. Businesses can enhance their agility, innovate faster, and maintain a competitive edge.

When we make apps, we usually offer customers the use of AWS. We’ve used it for a long time, and, for startups, the value is just right. If you plan on developing an app in the cloud, contact us!

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