Pebellslearn by building
0%
RoadmapsMatrixCoursesSandboxSign in
Introduction to the Cloud and AWS  ›  Lesson

What Is Cloud Computing?

What is Cloud Computing? 12 minCloud computing means renting computing resources such as servers, storage and databases over the internet, on demand, and paying only for what you use.

What Is Cloud Computing?

Inkwell Books, a small online bookshop in Pune, runs its website on one server in a back room. When a famous author posts about a new novel, orders jump tenfold for a day, the server slows to a crawl, and the owners lose sales. Buying a bigger server would fix that one day and sit idle for the other 364. Cloud computing exists for exactly this problem.

The rule

Rent computing on demand over the network; pay only for what you use.

Instead of buying machines, you rent them from a provider who runs huge data centres. Each part of the rule matters:

  • Rent: the provider owns the hardware, the buildings, the power and the cooling. You never touch a physical machine.
  • On demand: you ask for a server, a disk or a database yourself, through a web page or an API, and it is ready in minutes. No purchase order, no phone call.
  • Over the network: everything is reached through the internet or a private link.
  • Pay for what you use: billing is metered, like electricity. A server that runs for three hours costs three hours.

Two more traits follow from the provider's scale. Resources are pooled: many customers share the same giant fleet, safely separated from one another. And capacity is elastic: you can grow for the busy day and shrink again the next morning.

The money changes shape too. Buying servers is a large up-front cost, called capital expense. The cloud turns it into a running bill, called operating expense, that rises and falls with how much you actually use.

The shortcut

To decide whether something is truly cloud, run the three-question test: Can I get it myself in minutes? Can it grow and shrink? Am I billed for use? Three yeses mean cloud. Any no means it is ordinary hosting or your own hardware wearing a new label.

Testing Inkwell's optionsStep 1 of 3
  1. Option A: buy a bigger server

    Delivery takes weeks, it cannot shrink after the rush, and it is paid up front. Three noes.

The common mistake is thinking "cloud" means "someone else's computer". A rented box in someone else's building is someone else's computer, but without self-service, elasticity and metered billing it gives Inkwell none of the benefits that solve the book-launch problem.

Drills

Answer fast — trust the rule.

quick drill

Which trait lets Inkwell add servers for one busy day and remove them the next?

quick drill

A company buys twenty servers for its own building. What kind of cost is that?

quick drill

A provider rents you a server for a fixed yearly fee after a two-week manual setup. Which cloud traits are missing?

quick drill

Why can a cloud provider offer capacity to thousands of customers at short notice?

Remember

  • Cloud computing: rent computing on demand over the network, pay only for what you use.
  • Three-question test: self-service in minutes, grows and shrinks, billed for use.
  • Trap: "someone else's computer" is not enough; without elasticity and metering it is just hosting.

Practice — level up

0/1 solved

Write your answer, then compare it with a rubric and a model answer.

ExplainIs it really cloud?

Inkwell Books runs its shop website on one server in a back room. A hosting company offers to rent them a physical server for a fixed yearly fee, set up by hand within two weeks. A cloud provider offers servers they can start from a web page in minutes and pay for by the second. Explain which offer is cloud computing and why, using the traits from this lesson.