Cloud Computing - Definition & Meaning

Published in Information Technology & Systems by MBA Skool Team

What is Cloud Computing?

Cloud Computing is a new discovered computing platform in which everything from computing infrastructure and computing power like access rights, softwares, servers, technology, databases are delivered to a user over the internet as a service without having the need for the user to own this entire infrastructure.

This computing infrastructure is owned by a third party who allows multiple users to use this facility and earns revenue depending upon the usage of each individual user.

The word ‘Cloud’ refers to a cluster of servers, network, softwares, interface etc which are required for the user to execute a particular task. ‘Computing’ refers to the delivery of this cluster as a service to the user so that the user can use it as and when required.

Cloud computing thus relieves the user with a huge task of owning a massive computing infrastructure and doing upfront investment in it. Rather, it allows the user to use a similar infrastructure owned by other party at his/her own discretion and pay only for the time it is being used. In this way, it saves the user time in building huge computing infrastructure and allows the user to concentrate efforts on critical business activities.

Although Cloud Computing is highly cost effective, the data shared on a cloud platform by a user can be accessible to other users as well. Thus large organizations with highly sensitive information prefer to maintain their own infrastructure rather than using cloud platform. However, cloud computing is very much helpful for small and medium businesses.

Hence, this concludes the definition of Cloud Computing along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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