According to Statista, the U.S. cloud computing industry generated about $206 billion in revenue in 2022. Expand that globally, and the industry has a value of $483.98 billion. Growth is on the horizon, too, with Grand View Research stating that the various types of cloud computing will achieve a compound annual growth rate (CAGR) of 14.1% between 2023 and 2030.
The simple message is that cloud computing applications are big business.
But that won’t mean much to you if you don’t understand the basics of cloud computing infrastructure and how it all works. This article digs into the cloud computing basics so you can better understand what it means to deliver services via the cloud.
The Cloud Computing Definition
Let’s answer the key question immediately – what is cloud computing?
Microsoft defines cloud computing as the delivery of any form of computing services, such as storage or software, over the internet. Taking software as an example, cloud computing allows you to use a company’s software online rather than having to buy it as a standalone package that you install locally on your computer.
For the super dry definition, cloud computing is a model of computing that provides shared computer processing resources and data to computers and other devices on demand over the internet.
Cloud Computing Meaning
Though the cloud computing basics are pretty easy to grasp – you get services over the internet – what it means in a practical context is less clear.
In the past, businesses and individuals needed to buy and install software locally on their computers or servers. This is the typical ownership model. You hand over your money for a physical product, which you can use as you see fit.
You don’t purchase a physical product when using software via the cloud. You also don’t install that product, whatever it may be, physically on your computer. Instead, you receive the services managed directly by the provider, be they storage, software, analytics, or networking, over the internet. You (and your team) usually install a client that connects to the vendor’s servers, which contain all the necessary computational, processing, and storage power.
What Is Cloud Computing With Examples?
Perhaps a better way to understand the concept is with some cloud computing examples. These should give you an idea of what cloud computing looks like in practice:
- Google Drive – By integrating the Google Docs suite and its collaborative tools, Google Drive lets you create, save, edit, and share files remotely via the internet.
- Dropbox – The biggest name in cloud storage offers a pay-as-you-use service that enables you to increase your available storage space (or decrease it) depending on your needs.
- Amazon Web Services (AWS) – Built specifically for coders and programmers, AWS offers access to off-site remote servers.
- Microsoft Azure – Microsoft markets Azure as the only “consistent hybrid cloud.” This means Azure allows a company to digitize and modernize their existing infrastructure and make it available over the cloud.
- IBM Cloud – This service incorporates over 170 services, ranging from simple databases to the cloud servers needed to run AI programs.
- Salesforce – As the biggest name in the customer relationship management space, Salesforce is one of the biggest cloud computing companies. At the most basic level, it lets you maintain databases filled with details about your customers.
Common Cloud Computing Applications
Knowing what cloud computing is won’t help you much if you don’t understand its use cases. Here are a few ways you could use the cloud to enhance your work or personal life:
- Host websites without needing to keep on-site servers.
- Store files and data remotely, as you would with Dropbox or Salesforce. Most of these providers also provide backup services for disaster recovery.
- Recover lost data with off-site storage facilities that update themselves in real-time.
- Manage a product’s entire development cycle across one workflow, leading to easier bug tracking and fixing alongside quality assurance testing.
- Collaborate easily using platforms like Google Drive and Dropbox, which allow workers to combine forces on projects as long as they maintain an internet connection.
- Stream media, especially high-definition video, with cloud setups that provide the resources that an individual may not have built into a single device.
The Basics of Cloud Computing
With the general introduction to cloud computing and its applications out of the way, let’s get down to the technical side. The basics of cloud computing are split into five categories:
- Infrastructure
- Services
- Benefits
- Types
- Challenges
Cloud Infrastructure
The interesting thing about cloud infrastructure is that it simulates a physical build. You’re still using the same hardware and applications. Servers are in play, as is networking. But you don’t have the physical hardware at your location because it’s all off-site and stored, maintained, and updated by the cloud provider. You get access to the hardware, and the services it provides, via your internet connection.
So, you have no physical hardware to worry about besides the device you’ll use to access the cloud service.
Off-site servers handle storage, database management, and more. You’ll also have middleware in play, facilitating communication between your device and the cloud provider’s servers. That middleware checks your internet connection and access rights. Think of it like a bridge that connects seemingly disparate pieces of software so they can function seamlessly on a system.
Services
Cloud services are split into three categories:
Infrastructure as a Service (IaaS)
In a traditional IT setup, you have computers, servers, data centers, and networking hardware all combined to keep the front-end systems (i.e., your computers) running. Buying and maintaining that hardware is a huge cost burden for a business.
IaaS offers access to IT infrastructure, with scalability being a critical component, without forcing an IT department to invest in costly hardware. Instead, you can access it all via an internet connection, allowing you to virtualize traditionally physical setups.
Platform as a Service (PaaS)
Imagine having access to an entire IT infrastructure without worrying about all the little tasks that come with it, such as maintenance and software patching. After all, those small tasks build up, which is why the average small business spends an average of 6.9% of its revenue on dealing with IT systems each year.
PaaS reduces those costs significantly by giving you access to cloud services that manage maintenance and patching via the internet. On the simplest level, this may involve automating software updates so you don’t have to manually check when software is out of date.
Software as a Service (SaaS)
If you have a rudimentary understanding of cloud computing, the SaaS model is the one you are likely to understand the most. A cloud provider builds software and makes it available over the internet, with the user paying for access to that software in the form of a subscription. As long as you keep paying your monthly dues, you get access to the software and any updates or patches the service provider implements.
It’s with SaaS that we see the most obvious evolution of the traditional IT model. In the past, you’d pay a one-time fee to buy a piece of software off the shelf, which you then install and maintain yourself. SaaS gives you constant access to the software, its updates, and any new versions as long as you keep paying your subscription. Compare the standalone versions of Microsoft Office with Microsoft Office 365, especially in their range of options, tools, and overall costs.
Benefits of Cloud Computing
The traditional model of buying a thing and owning it worked for years. So, you may wonder why cloud computing services have overtaken traditional models, particularly on the software side of things. The reason is that cloud computing offers several advantages over the old ways of doing things:
- Cost savings – Cloud models allow companies to spread their spending over the course of a year. It’s the difference between spending $100 on a piece of software versus spending $10 per month to access it. Sure, the one-off fee ends up being less, but paying $10 per month doesn’t sting your bank balance as much.
- Scalability – Linking directly to cost savings, you don’t need to buy every element of a software to access the features you need when using cloud services. You pay for what you use and increase the money you spend as your business scales and you need deeper access.
- Mobility – Cloud computing allows you to access documents and services anywhere. Where before, you were tied to your computer desk if you wanted to check or edit a document, you can now access that document on almost any device.
- Flexibility – Tied closely to mobility, the flexibility that comes from cloud computing is great for users. Employees can head out into the field, access the services they need to serve customers, and send information back to in-house workers or a customer relationship management (CRM) system.
- Reliability – Owning physical hardware means having to deal with the many problems that can affect that hardware. Malfunctions, viruses, and human error can all compromise a network. Cloud service providers offer reliability based on in-depth expertise and more resources dedicated to their hardware setups.
- Security – The done-for-you aspect of cloud computing, particularly concerning maintenance and updates, means one less thing for a business to worry about. It also absorbs some of the costs of hardware and IT maintenance personnel.
Types of Cloud Computing
The types of cloud computing are as follows:
- Public Cloud – The cloud provider manages all hardware and software related to the service it provides to users.
- Private Cloud – An organization develops its suite of services, all managed via the cloud but only accessible to group members.
- Hybrid Cloud – Combines a public cloud with on-premises infrastructure, allowing applications to move between each.
- Community Cloud – While the community cloud has many similarities to a public cloud, it’s restricted to only servicing a limited number of users. For example, a banking service may only get offered to the banking community.
Challenges of Cloud Computing
Many a detractor of cloud computing notes that it isn’t as issue-proof as it may seem. The challenges of cloud computing may outweigh its benefits for some:
- Security issues related to cloud computing include data privacy, with cloud providers obtaining access to any sensitive information you store on their servers.
- As more services switch over to the cloud, managing the costs related to every subscription you have can feel like trying to navigate a spider’s web of software.
- Just because you’re using a cloud-based service, that doesn’t mean said service handles compliance for you.
- If you don’t perfectly follow a vendor’s terms of service, they can restrict your access to their cloud services remotely. You don’t own anything.
- You can’t do anything if a service provider’s servers go down. You have to wait for them to fix the issue, leaving you stuck without access to the software for which you’re paying.
- You can’t call a third party to resolve an issue your systems encounter with the cloud service because the provider is the only one responsible for their product.
- Changing cloud providers and migrating data can be challenging, so even if one provider doesn’t work well, companies may hesitate to look for other options due to sunk costs.
Cloud Computing Is the Present and Future
For all of the challenges inherent in the cloud computing model, it’s clear that it isn’t going anywhere. Techjury tells us that about 57% of companies moved, or were in the process of moving, their workloads to cloud services in 2022.
That number will only increase as cloud computing grows and develops.
So, let’s leave you with a short note on cloud computing. It’s the latest step in the constant evolution of how tech companies offer their services to users. Questions of ownership aside, it’s a model that students, entrepreneurs, and everyday people must understand.
-
From the same author
Read the articleAccording to Statista, the U.S. cloud computing industry generated about $206 billion in revenue in 2022. Expand that globally, and the industry has a value of $483.98 billion. Growth is on the horizon, too, with Grand View Research stating that the various types of cloud computing will achieve a compound annual growth rate (CAGR) of 14.1% between 2023 and 2030.
The simple message is that cloud computing applications are big business.
But that won’t mean much to you if you don’t understand the basics of cloud computing infrastructure and how it all works. This article digs into the cloud computing basics so you can better understand what it means to deliver services via the cloud.
The Cloud Computing Definition
Let’s answer the key question immediately – what is cloud computing?
Microsoft defines cloud computing as the delivery of any form of computing services, such as storage or software, over the internet. Taking software as an example, cloud computing allows you to use a company’s software online rather than having to buy it as a standalone package that you install locally on your computer.
For the super dry definition, cloud computing is a model of computing that provides shared computer processing resources and data to computers and other devices on demand over the internet.
Cloud Computing Meaning
Though the cloud computing basics are pretty easy to grasp – you get services over the internet – what it means in a practical context is less clear.
In the past, businesses and individuals needed to buy and install software locally on their computers or servers. This is the typical ownership model. You hand over your money for a physical product, which you can use as you see fit.
You don’t purchase a physical product when using software via the cloud. You also don’t install that product, whatever it may be, physically on your computer. Instead, you receive the services managed directly by the provider, be they storage, software, analytics, or networking, over the internet. You (and your team) usually install a client that connects to the vendor’s servers, which contain all the necessary computational, processing, and storage power.
What Is Cloud Computing With Examples?
Perhaps a better way to understand the concept is with some cloud computing examples. These should give you an idea of what cloud computing looks like in practice:
- Google Drive – By integrating the Google Docs suite and its collaborative tools, Google Drive lets you create, save, edit, and share files remotely via the internet.
- Dropbox – The biggest name in cloud storage offers a pay-as-you-use service that enables you to increase your available storage space (or decrease it) depending on your needs.
- Amazon Web Services (AWS) – Built specifically for coders and programmers, AWS offers access to off-site remote servers.
- Microsoft Azure – Microsoft markets Azure as the only “consistent hybrid cloud.” This means Azure allows a company to digitize and modernize their existing infrastructure and make it available over the cloud.
- IBM Cloud – This service incorporates over 170 services, ranging from simple databases to the cloud servers needed to run AI programs.
- Salesforce – As the biggest name in the customer relationship management space, Salesforce is one of the biggest cloud computing companies. At the most basic level, it lets you maintain databases filled with details about your customers.
Common Cloud Computing Applications
Knowing what cloud computing is won’t help you much if you don’t understand its use cases. Here are a few ways you could use the cloud to enhance your work or personal life:
- Host websites without needing to keep on-site servers.
- Store files and data remotely, as you would with Dropbox or Salesforce. Most of these providers also provide backup services for disaster recovery.
- Recover lost data with off-site storage facilities that update themselves in real-time.
- Manage a product’s entire development cycle across one workflow, leading to easier bug tracking and fixing alongside quality assurance testing.
- Collaborate easily using platforms like Google Drive and Dropbox, which allow workers to combine forces on projects as long as they maintain an internet connection.
- Stream media, especially high-definition video, with cloud setups that provide the resources that an individual may not have built into a single device.
The Basics of Cloud Computing
With the general introduction to cloud computing and its applications out of the way, let’s get down to the technical side. The basics of cloud computing are split into five categories:
- Infrastructure
- Services
- Benefits
- Types
- Challenges
Cloud Infrastructure
The interesting thing about cloud infrastructure is that it simulates a physical build. You’re still using the same hardware and applications. Servers are in play, as is networking. But you don’t have the physical hardware at your location because it’s all off-site and stored, maintained, and updated by the cloud provider. You get access to the hardware, and the services it provides, via your internet connection.
So, you have no physical hardware to worry about besides the device you’ll use to access the cloud service.
Off-site servers handle storage, database management, and more. You’ll also have middleware in play, facilitating communication between your device and the cloud provider’s servers. That middleware checks your internet connection and access rights. Think of it like a bridge that connects seemingly disparate pieces of software so they can function seamlessly on a system.
Services
Cloud services are split into three categories:
Infrastructure as a Service (IaaS)
In a traditional IT setup, you have computers, servers, data centers, and networking hardware all combined to keep the front-end systems (i.e., your computers) running. Buying and maintaining that hardware is a huge cost burden for a business.
IaaS offers access to IT infrastructure, with scalability being a critical component, without forcing an IT department to invest in costly hardware. Instead, you can access it all via an internet connection, allowing you to virtualize traditionally physical setups.
Platform as a Service (PaaS)
Imagine having access to an entire IT infrastructure without worrying about all the little tasks that come with it, such as maintenance and software patching. After all, those small tasks build up, which is why the average small business spends an average of 6.9% of its revenue on dealing with IT systems each year.
PaaS reduces those costs significantly by giving you access to cloud services that manage maintenance and patching via the internet. On the simplest level, this may involve automating software updates so you don’t have to manually check when software is out of date.
Software as a Service (SaaS)
If you have a rudimentary understanding of cloud computing, the SaaS model is the one you are likely to understand the most. A cloud provider builds software and makes it available over the internet, with the user paying for access to that software in the form of a subscription. As long as you keep paying your monthly dues, you get access to the software and any updates or patches the service provider implements.
It’s with SaaS that we see the most obvious evolution of the traditional IT model. In the past, you’d pay a one-time fee to buy a piece of software off the shelf, which you then install and maintain yourself. SaaS gives you constant access to the software, its updates, and any new versions as long as you keep paying your subscription. Compare the standalone versions of Microsoft Office with Microsoft Office 365, especially in their range of options, tools, and overall costs.
Benefits of Cloud Computing
The traditional model of buying a thing and owning it worked for years. So, you may wonder why cloud computing services have overtaken traditional models, particularly on the software side of things. The reason is that cloud computing offers several advantages over the old ways of doing things:
- Cost savings – Cloud models allow companies to spread their spending over the course of a year. It’s the difference between spending $100 on a piece of software versus spending $10 per month to access it. Sure, the one-off fee ends up being less, but paying $10 per month doesn’t sting your bank balance as much.
- Scalability – Linking directly to cost savings, you don’t need to buy every element of a software to access the features you need when using cloud services. You pay for what you use and increase the money you spend as your business scales and you need deeper access.
- Mobility – Cloud computing allows you to access documents and services anywhere. Where before, you were tied to your computer desk if you wanted to check or edit a document, you can now access that document on almost any device.
- Flexibility – Tied closely to mobility, the flexibility that comes from cloud computing is great for users. Employees can head out into the field, access the services they need to serve customers, and send information back to in-house workers or a customer relationship management (CRM) system.
- Reliability – Owning physical hardware means having to deal with the many problems that can affect that hardware. Malfunctions, viruses, and human error can all compromise a network. Cloud service providers offer reliability based on in-depth expertise and more resources dedicated to their hardware setups.
- Security – The done-for-you aspect of cloud computing, particularly concerning maintenance and updates, means one less thing for a business to worry about. It also absorbs some of the costs of hardware and IT maintenance personnel.
Types of Cloud Computing
The types of cloud computing are as follows:
- Public Cloud – The cloud provider manages all hardware and software related to the service it provides to users.
- Private Cloud – An organization develops its suite of services, all managed via the cloud but only accessible to group members.
- Hybrid Cloud – Combines a public cloud with on-premises infrastructure, allowing applications to move between each.
- Community Cloud – While the community cloud has many similarities to a public cloud, it’s restricted to only servicing a limited number of users. For example, a banking service may only get offered to the banking community.
Challenges of Cloud Computing
Many a detractor of cloud computing notes that it isn’t as issue-proof as it may seem. The challenges of cloud computing may outweigh its benefits for some:
- Security issues related to cloud computing include data privacy, with cloud providers obtaining access to any sensitive information you store on their servers.
- As more services switch over to the cloud, managing the costs related to every subscription you have can feel like trying to navigate a spider’s web of software.
- Just because you’re using a cloud-based service, that doesn’t mean said service handles compliance for you.
- If you don’t perfectly follow a vendor’s terms of service, they can restrict your access to their cloud services remotely. You don’t own anything.
- You can’t do anything if a service provider’s servers go down. You have to wait for them to fix the issue, leaving you stuck without access to the software for which you’re paying.
- You can’t call a third party to resolve an issue your systems encounter with the cloud service because the provider is the only one responsible for their product.
- Changing cloud providers and migrating data can be challenging, so even if one provider doesn’t work well, companies may hesitate to look for other options due to sunk costs.
Cloud Computing Is the Present and Future
For all of the challenges inherent in the cloud computing model, it’s clear that it isn’t going anywhere. Techjury tells us that about 57% of companies moved, or were in the process of moving, their workloads to cloud services in 2022.
That number will only increase as cloud computing grows and develops.
So, let’s leave you with a short note on cloud computing. It’s the latest step in the constant evolution of how tech companies offer their services to users. Questions of ownership aside, it’s a model that students, entrepreneurs, and everyday people must understand.
Read the articleIt’s hard to find a person who uses the internet but doesn’t enjoy at least one cloud computing service. “Cloud computing” sounds complex, but it’s actually all around you. The term encompasses every tool, app, and service that’s delivered via the internet.
The two popular examples are Dropbox and Google Drive. These cloud-based storage spaces allow you to keep your files at arm’s reach and access them in a few clicks. Zoom is also a cloud-based service – it makes communication a breeze.
Cloud computing can be classified into four types: public, private, hybrid, and community. These four types belong to one of the three cloud computing service models: infrastructure as a service, platform as a service, or software as a service.
It’s time to don a detective cap and explore the mystery hidden behind cloud computing.
Cloud Computing Deployment Models
- Public cloud
- Private cloud
- Hybrid cloud
- Community cloud
Public Cloud
The “public” in public cloud means anyone who wants to use that service can get it. Public clouds are easy to access and usually have a “general” purpose many can benefit from.
It’s important to mention that with public clouds, the infrastructure is owned by the service provider, not by consumers. This means you can’t “purchase” a public cloud service forever.
Advantages of Public Cloud
- Cost-effectiveness – Some public clouds are free. Those that aren’t free typically have a reasonable fee.
- Scalability – Public clouds are accommodating to changing demands. Depending on the cloud’s nature, you can easily add or remove users, upgrade plans, or manipulate storage space.
- Flexibility – Public clouds are suitable for many things, from storing a few files temporarily to backing up an entire company’s records.
Disadvantages of Public Cloud
- Security concerns – Since anyone can access public clouds, you can’t be sure your data is 100% safe.
- Limited customization – While public clouds offer many options, they don’t really allow you to tailor the environment to match your preferences. They’re made to suit broad masses, not particular individuals.
Examples of Public Cloud Providers
- Amazon Web Services (AWS)
- Microsoft Azure
- Google Cloud Platform
Private Cloud
If you’re looking for the complete opposite of public clouds, you’ve found it. Private clouds aren’t designed to fit general criteria. Instead, they’re made to please a single user. Some of the perks private clouds offer are exclusive access, exceptional security, and unmatched customization.
A private cloud is like a single-tenant building. The tenant owns the building and has complete control to do whatever they want. They can tear down walls, drill holes to hang pictures, paint the rooms, install tiles, and get new furniture. When needs change, the tenant can redecorate, no questions asked.
Advantages of Private Cloud
- Enhanced security – The company’s IT department oversees private clouds. They’re usually protected by powerful firewalls and protocols that minimize the risk of information breaches.
- Greater control and customization – Since private clouds are one-on-one environments, you can match them to your needs.
- Improved performance – Private clouds can have functions that suit your organization to the letter, resulting in high performance.
Disadvantages of Private Cloud
- Higher costs – The exclusive access and customization come at a cost (literally).
- Limited scalability – You can scale private clouds, but only up to a certain point.
Examples of Private Cloud Providers
- VMware
- IBM Cloud
- Dell EMC
Hybrid Cloud
Public and private clouds have a few important drawbacks that may be deal-breakers for some people. You may want to use public clouds but aren’t ready to compromise on security. On the other hand, you may want the perks that come with private clouds but aren’t happy with limited scalability.
That’s when hybrid clouds come into play because they let you get the best of both worlds. They’re the perfect mix of public and private clouds and offer their best features. You can get the affordability of public clouds and the security of private clouds.
Advantages of Hybrid Cloud
- Flexibility and scalability – Hybrid clouds are personalized environments, meaning you can adjust them to meet your specific needs. If your needs change, hybrid clouds can keep up.
- Security and compliance – You don’t have to worry about data breaches or intruders with hybrid clouds. They use state-of-the-art measures to guarantee safety, privacy, and security.
- Cost optimization – Hybrid clouds are much more affordable than private ones. You’ll need to pay extra only if you want special features.
Disadvantages of Hybrid Cloud
- Complexity in management – Since they combine public and private clouds, hybrid clouds are complex systems that aren’t really easy to manage.
- Potential security risks – Hybrid clouds aren’t as secure as private clouds.
Examples of Hybrid Cloud Providers
- Microsoft Azure Stack
- AWS Outputs
- Google Anthos
Community Cloud
Community clouds are shared by more than one organization. The organizations themselves manage them or a third party. In terms of security, community clouds fall somewhere between private and public clouds. The same goes for their price.
Advantages of Community Cloud
- Shared resources and costs – A community cloud is like a common virtual space for several organizations. By sharing the space, the organizations also share costs and resources.
- Enhanced security and compliance – Community clouds are more secure than public clouds.
- Collaboration opportunities – Cloud sharing often encourages organizations to collaborate on different projects.
Disadvantages of Community Cloud
- Limited scalability – Community clouds are scalable, but only to a certain point.
- Dependency on other organizations – As much as sharing a cloud with another organization(s) sounds exciting (and cost-effective), it means you’ll depend on them.
Examples of Community Cloud Providers
- Salesforce Community Cloud
- Rackspace
- IBM Cloud for Government
Cloud Computing Service Models
There are three types of cloud computing service models:
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
IaaS
IaaS is a type of pay-as-you-go, third-party service. In this case, the provider gives you an opportunity to enjoy infrastructure services for your networking equipment, databases, devices, etc. You can get services like virtualization and storage and build a strong IT platform with exceptional security.
IaaS models give you the flexibility to create an environment that suits your organization. Plus, they allow remote access and cost-effectiveness.
What about their drawbacks? The biggest issue could be security, especially in multi-tenant ecosystems. You can mitigate security risks by opting for a reputable provider like AWS or Microsoft (Azure).
PaaS
Here, the provider doesn’t deliver the entire infrastructure to a user. Instead, it hosts software and hardware on its own infrastructure, delivering only the “finished product.” The user enjoys this through a platform, which can exist in the form of a solution stack, integrated solution, or an internet-dependent service.
Programmers and developers are among the biggest fans of PaaS. This service model enables them to work on apps and programs without dealing with maintaining complex infrastructures. An important advantage of PaaS is accessibility – users can enjoy it through their web browser.
As far as disadvantages go, the lack of customizability may be a big one. Since you don’t have control over the infrastructure, you can’t really make adjustments to suit your needs. Another potential drawback is that PaaS depends on the provider, so if they’re experiencing problems, you could too.
Some examples of PaaS are Heroku and AWS Elastic Beanstalk.
SaaS
Last but not least is SaaS. Thanks to this computing service model, users can access different software apps using the internet. SaaS is the holy grail for small businesses that don’t have the budget, bandwidth, workforce, or will to install and maintain software. Instead, they leave this work to the providers and enjoy only the “fun” parts.
The biggest advantage of SaaS is that it allows easy access to apps from anywhere. You’ll have no trouble using SaaS as long as you have internet. Plus, it saves a lot of money and time.
Nothing’s perfect, and SaaS is no exception. If you want to use SaaS without interruptions, you need to have a stable internet connection. Plus, with SaaS, you don’t have as much control over the software’s performance and security. Therefore, you need to decide on your priorities. SaaS may not be the best option if you want a highly-customizable environment with exceptional security.
The most popular examples of SaaS are Dropbox, Google Apps, and Salesforce.
Sit on the Right Cloud
Are high security and appealing customization features your priority? Or are you on the hunt for a cost-effective solution? Your answers can indicate which cloud deployment model you should choose.
It’s important to understand that models are not divided into “good” and “bad.” Each has unique characteristics that can be beneficial and detrimental at the same time. If you don’t know how to employ a particular model, you won’t be able to reap its benefits.
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- Raconteur, published on November 06th, 2025
Many firms have conducted successful Artificial Intelligence (AI) pilot projects, but scaling them across departments and workflows remains a challenge. Inference costs, data silos, talent gaps and poor alignment with business strategy are just some of the issues that leave organisations trapped in pilot purgatory. This inability to scale successful experiments means AI’s potential for improving enterprise efficiency, decision-making and innovation isn’t fully realised. So what’s the solution?
Although it’s not a magic bullet, an AI operating model is really the foundation for scaling pilot projects up to enterprise-wide deployments. Essentially it’s a structured framework that defines how the organisation develops, deploys and governs AI. By bringing together infrastructure, data, people, and governance in a flexible and secure way, it ensures that AI delivers value at scale while remaining ethical and compliant.
“A successful AI proof-of-concept is like building a single race car that can go fast,” says Professor Yu Xiong, chair of business analytics at the UK-based Surrey Business School. “An efficient AI technology operations model, however, is the entire system – the processes, tools, and team structures – for continuously manufacturing, maintaining, and safely operating an entire fleet of cars.”
But while the importance of this framework is clear, how should enterprises establish and embed it?
“It begins with a clear strategy that defines objectives, desired outcomes, and measurable success criteria, such as model performance, bias detection, and regulatory compliance metrics,” says Professor Azadeh Haratiannezhadi, co-founder of generative AI company Taktify and professor of generative AI in cybersecurity at OPIT – the Open Institute of Technology.
Platforms, tools and MLOps pipelines that enable models to be deployed, monitored and scaled in a safe and efficient way are also essential in practical terms.
“Tools and infrastructure must also be selected with transparency, cost, and governance in mind,” says Efrain Ruh, continental chief technology officer for Europe at Digitate. “Crucially, organisations need to continuously monitor the evolving AI landscape and adapt their models to new capabilities and market offerings.”
An open approach
The most effective AI operating models are also founded on openness, interoperability and modularity. Open source platforms and tools provide greater control over data, deployment environments and costs, for example. These characteristics can help enterprises to avoid vendor lock-in, successfully align AI to business culture and values, and embed it safely into cross-department workflows.
“Modularity and platformisation…avoids building isolated ‘silos’ for each project,” explains professor Xiong. “Instead, it provides a shared, reusable ‘AI platform’ that integrates toolchains for data preparation, model training, deployment, monitoring, and retraining. This drastically improves efficiency and reduces the cost of redundant work.”
A strong data strategy is equally vital for ensuring high-quality performance and reducing bias. Ideally, the AI operating model should be cloud and LLM agnostic too.
“This allows organisations to coordinate and orchestrate AI agents from various sources, whether that’s internal or 3rd party,” says Babak Hodjat, global chief technology officer of AI at Cognizant. “The interoperability also means businesses can adopt an agile iterative process for AI projects that is guided by measuring efficiency, productivity, and quality gains, while guaranteeing trust and safety are built into all elements of design and implementation.”
A robust AI operating model should feature clear objectives for compliance, security and data privacy, as well as accountability structures. Richard Corbridge, chief information officer of Segro, advises organisations to: “Start small with well-scoped pilots that solve real pain points, then bake in repeatable patterns, data contracts, test harnesses, explainability checks and rollback plans, so learning can be scaled without multiplying risk. If you don’t codify how models are approved, deployed, monitored and retired, you won’t get past pilot purgatory.”
Of course, technology alone can’t drive successful AI adoption at scale: the right skills and culture are also essential for embedding AI across the enterprise.
“Multidisciplinary teams that combine technical expertise in AI, security, and governance with deep business knowledge create a foundation for sustainable adoption,” says Professor Haratiannezhadi. “Ongoing training ensures staff acquire advanced AI skills while understanding associated risks and responsibilities.”
Ultimately, an AI operating model is the playbook that enables an enterprise to use AI responsibly and effectively at scale. By drawing together governance, technological infrastructure, cultural change and open collaboration, it supports the shift from isolated experiments to the kind of sustainable AI capability that can drive competitive advantage.
In other words, it’s the foundation for turning ambition into reality, and finally escaping pilot purgatory for good.
The Open Institute of Technology (OPIT) is the perfect place for those looking to master the core skills and gain the fundamental knowledge they need to enter the exciting and dynamic environment of the tech industry. While OPIT’s various degrees and courses unlock the doors to numerous careers, students may not know exactly which line of work they wish to enter, or how, exactly, to take the next steps.
That’s why, as well as providing exceptional online education in fields like Responsible AI, Computer Science, and Digital Business, OPIT also offers an array of career-related services, like the Peer Career Mentoring Program. Designed to provide the expert advice and support students need, this program helps students and alumni gain inspiration and insight to map out their future careers.
Introducing the OPIT Peer Career Mentoring Program
As the name implies, OPIT’s Peer Career Mentoring Program is about connecting students and alumni with experienced peers to provide insights, guidance, and mentorship and support their next steps on both a personal and professional level.
It provides a highly supportive and empowering space in which current and former learners can receive career-related advice and guidance, harnessing the rich and varied experiences of the OPIT community to accelerate growth and development.
Meet the Mentors
Plenty of experienced, expert mentors have already signed up to play their part in the Peer Career Mentoring Program at OPIT. They include managers, analysts, researchers, and more, all ready and eager to share the benefits of their experience and their unique perspectives on the tech industry, careers in tech, and the educational experience at OPIT.
Examples include:
- Marco Lorenzi: Having graduated from the MSc in Applied Data Science and AI program at OPIT, Marco has since progressed to a role as a Prompt Engineer at RWS Group and is passionate about supporting younger learners as they take their first steps into the workforce or seek career evolution.
- Antonio Amendolagine: Antonio graduated from the OPIT MSc in Applied Data Science and AI and currently works as a Product Marketing and CRM Manager with MER MEC SpA, focusing on international B2B businesses. Like other mentors in the program, he enjoys helping students feel more confident about achieving their future aims.
- Asya Mantovani: Asya took the MSc in Responsible AI program at OPIT before taking the next steps in her career as a Software Engineer with Accenture, one of the largest IT companies in the world, and a trusted partner of the institute. With a firm belief in knowledge-sharing and mutual support, she’s eager to help students progress and succeed.
The Value of the Peer Mentoring Program
The OPIT Peer Career Mentoring Program is an invaluable source of support, inspiration, motivation, and guidance for the many students and graduates of OPIT who feel the need for a helping hand or guiding light to help them find the way or make the right decisions moving forward. It’s a program built around the sharing of wisdom, skills, and insights, designed to empower all who take part.
Every student is different. Some have very clear, fixed, and firm objectives in mind for their futures. Others may have a slightly more vague outline of where they want to go and what they want to do. Others live more in the moment, focusing purely on the here and now, but not thinking too far ahead. All of these different types of people may need guidance and support from time to time, and peer mentoring provides that.
This program is also just one of many ways in which OPIT bridges the gaps between learners around the world, creating a whole community of students and educators, linked together by their shared passions for technology and development. So, even though you may study remotely at OPIT, you never need to feel alone or isolated from your peers.
Additional Career Services Offered by OPIT
The Peer Career Mentoring Program is just one part of the larger array of career services that students enjoy at the Open Institute of Technology.
- Career Coaching and Support: Students can schedule one-to-one sessions with the institute’s experts to receive insightful feedback, flexibly customized to their exact needs and situation. They can request resume audits, hone their interview skills, and develop action plans for the future, all with the help of experienced, expert coaches.
- Resource Hub: Maybe you need help differentiating between various career paths, or seeing where your degree might take you. Or you need a bit of assistance in handling the challenges of the job-hunting process. Either way, the OPIT Resource Hub contains the in-depth guides you need to get ahead and gain practical skills to confidently move forward.
- Career Events: Regularly, OPIT hosts online career event sessions with industry experts and leaders as guest speakers about the topics that most interest today’s tech students and graduates. You can join workshops to sharpen your skills and become a better prospect in the job market, or just listen to the lessons and insights of the pros.
- Internship Opportunities: There are few better ways to begin your professional journey than an internship at a top-tier company. OPIT unlocks the doors to numerous internship roles with trusted institute partners, as well as additional professional and project opportunities where you can get hands-on work experience at a high level.
In addition to the above, OPIT also teams up with an array of leading organizations around the world, including some of the biggest names, including AWS, Accenture, and Hype. Through this network of trust, OPIT facilitates students’ steps into the world of work.
Start Your Study Journey Today
As well as the Peer Career Mentoring Program, OPIT provides numerous other exciting advantages for those who enroll, including progressive assessments, round-the-clock support, affordable rates, and a team of international professors from top universities with real-world experience in technology. In short, it’s the perfect place to push forward and get the knowledge you need to succeed.
So, if you’re eager to become a tech leader of tomorrow, learn more about OPIT today.
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