Cloud computing is a technology

What is cloud computing?

Access computing power, storage and software as services

Cloud computing provides computing resources, such as servers, storage, networks, databases and applications, as services available on demand over a network. Access commonly uses the internet, although private network connections are also possible. These resources still run on physical hardware in real data centres.

A business can use cloud services for email, file sharing and web applications, or to collect and analyse production data as part of Industry 4.0. The benefits depend on the workload, service model and configuration.

Does putting a server online make it a cloud?

NIST identifies five essential characteristics: on-demand self-service, broad network access, resource pooling, rapid elasticity and measured service. Customers can provision, expand or release resources within the service's capabilities. Elasticity does not guarantee unlimited capacity; quotas and technical limits can apply.

Ethernet and TCP-based communication are parts of data transport. Cloud computing describes how resources accessed through those connections are provided. Remote access to a server alone does not establish that all cloud characteristics are present.

The difference between IaaS, PaaS and SaaS

IaaS — Infrastructure as a Service: The provider supplies virtual servers, storage and networking. It manages the physical infrastructure, while the customer generally manages the operating system, installed applications and important security settings. This offers more control to businesses that need to build their own software environment.

PaaS — Platform as a Service: The provider supplies a managed environment for running applications. It handles layers such as infrastructure and the operating system, while the customer focuses on application code, data and application settings. Managed application platforms and database services are examples of this approach.

SaaS — Software as a Service: Customers access a ready-made application through a browser or client. Web-based email and CRM systems are examples. The provider manages the application and infrastructure; user permissions, data sharing and account security still require customer management.

Public, private, hybrid and community clouds

Public cloud: A provider offers cloud services to a broad customer base. Shared infrastructure does not mean that customer data is publicly accessible. The word “public” does not require the infrastructure to be government-owned.

Private cloud: A cloud environment is dedicated to one organization. It may be hosted on the organization's premises or by an external provider. A company server or virtualized environment is not automatically a private cloud; it must also provide the characteristics of cloud computing.

Hybrid cloud: Different environments operate together through data and application integration; combining private and public clouds is a common example. Multicloud means using more than one cloud provider, without necessarily integrating those environments.

Community cloud: This is the fourth deployment model in NIST's classification. Several organizations with shared security, mission or operational requirements use cloud infrastructure dedicated to their community.

Where does it help with data collection and analysis?

Information from Internet of Things devices, data loggers and SCADA systems can be sent to the cloud for centralized reporting, historical records and data analytics. This infrastructure can support digital twins, artificial intelligence services and machine learning. However, sending data to the cloud alone does not deliver accurate analysis or successful predictive maintenance; data quality and application design remain decisive.

How cloud services relate to local automation

For example, a PLC can control the motors at a pumping station locally, while an industrial computer or gateway sends operating data collected over Modbus to the cloud. In this example, automation runs on site and long-term reporting runs in the cloud. Edge computing processes data close to its source, potentially reducing latency and the amount of data transmitted.

Loss of connectivity requires a separate design decision. A suitable local system can buffer data and forward it after reconnection, subject to disk capacity, retention settings and software behaviour. For fast control and safety functions, acceptable latency and the response to communication failure must be assessed against the machine's requirements.

Do costs, security duties and maintenance disappear?

The cloud is not always cheaper. It can reduce initial hardware investment, but compute time, storage, data transfer, licensing, support and idle resources affect total cost. Usage monitoring, budget alerts and shutting down unnecessary resources matter. Also assess how data can be exported and applications moved when changing providers.

Security is a shared responsibility. The division of maintenance duties changes with the service model; the provider does not assume every responsibility. Multifactor authentication, appropriate access permissions, encryption choices and logging remain important. Data flows between production networks and cloud services should be restricted through an industrial cybersecurity approach.