Cloud computing is a procedure that involves transferring data and applications into the cloud. This allows businesses to access them from anywhere they have internet access. Businesses can save money by switching to cloud computing and sizing their infrastructure up and down quickly as needed. This allows companies to develop more quickly, without having to wait for new technology to be delivered.

Enterprises use the cloud typically by hosting their applications on the servers of cloud service providers. This type of cloud computing is called Software-as-a-Service (SaaS). SaaS providers provide all of the hardware, middleware, and application software required to run a business app in their data centers. The service is typically provided on a pay as you basis, which means that the customer only pays for the software they use.

Another popular cloud service is called Infrastructure-as-a-Service (IaaS). IaaS allows a company to lease the hardware and storage required to develop its own software in a cloud computing provider’s data center. It’s similar to renting a house where you pay only for the rooms you use, like the kitchen for eating dinner, or the bedroom after you’re ready to 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 down cloud applications into small pieces that can be activated when they are needed. This lets you pay only for the resources that you need.