Understanding Cloud Computing: Its Types and Functions for Businesses

Cloudmatika / March 26, 2026

Many people still don’t know what cloud computing is. Simply put, cloud computing is a method used to deliver various types of services over the internet. These services can include servers, databases, software, and much more.

In this article, Cloudmatika will discuss what cloud computing is, provide examples, explain how it works, and cover its different types. Let’s take a look at the full review below!

What Is Cloud Computing?

Cloud computing is a combination of computer technology (“computing”) and internet-based development (“cloud”). The “cloud” here is a metaphor for the internet, as clouds are often depicted in visualizations of computer networks and the internet.

Cloud computing offers many benefits to its users, such as easy access to information and data via the internet, as well as the ability to run programs without having to install them first. Cloud computing itself can be either public or private.

In addition to public and private clouds, some cloud service providers offer hybrid cloud and community cloud services. A hybrid cloud combines elements of both public and private clouds, while a community cloud is a cloud option available to communities, organizations, institutions, and so on.

Companies that provide cloud computing services allow all their users to store files in the “cloud” or in the virtual space of a remote server. Additionally, users can access all stored files anytime and anywhere as long as they have internet access. Users do not need to be in a specific location to access these files.

Is Cloud Computing Secure?

Security is certainly a key concern for companies when considering the use of cloud computing.

So, is cloud computing secure?

The answer, of course, depends heavily on the provider you choose. However, despite its shortcomings, cloud computing is far more secure than using on-premises servers within a company.

Why is that?

Because, generally speaking, cloud service providers have better resources—both technological and human—to build robust data security systems than an individual company does.

What Are Some Examples of Cloud Computing?

There are countless examples of cloud computing in use. Although it is a relatively new service, cloud computing is already used by a wide range of users, from individuals and small businesses to corporations and even governments. Here are some of the most common examples of cloud computing:

Email
Data storage
Data analysis
Streaming (both audio and video)
Application development

In addition, cloud computing can also provide users with services such as artificial intelligence, natural language processing, and even simple productivity programs. Cloud computing allows users to access and use its services without needing to be physically present in front of the hardware.

How Does Cloud Computing Work?

Cloud computing technology begins to function once users are connected to the internet, whether to access data or use programs. Once connected to the internet, users simply need to log in to the computing system.

All cloud computing users who successfully log in to the system can issue various commands to the application’s server. Once the server receives the commands, users can access the desired data, modify it, or update it according to the instructions provided.

Why Should You Use Cloud Computing?

Using cloud computing technology can simplify work and provide many benefits for businesses. Below, you’ll learn several reasons why you should use cloud computing.

1. Efficiency

One of the greatest advantages of cloud computing is its ability to scale up or down resources in real time based on demand. If a user needs more CPU power, hard drive space, or RAM, those resources can be provisioned quickly.

Users don’t need to perform manual upgrades; they simply need to request that their cloud service provider make the necessary adjustments. Additionally, users can ask the cloud service provider to revert previously upgraded resources back to their original specifications.

2. Flexible

When a user’s data volume becomes too large, cloud services can automatically scale up capacity in just a matter of minutes through self-provisioning features. This way, users don’t need to manually increase capacity—such as by adding more computers.

Furthermore, cloud computing is easily accessible anytime and anywhere as long as you have an internet connection. All files are stored in a secure virtual space on the internet.

3. Cost-Effective

The biggest reason you should start using cloud computing is its cost-effectiveness. For data storage, cloud computing requires no hardware costs. Furthermore, it reduces maintenance and electricity costs.

4. Enhancing Collaboration

One of the benefits of cloud computing is that it facilitates data access for all employees who need it, even those located overseas. With easy access, employees from different departments can work more effectively, and collaboration can be established effortlessly.

What Are the Types of Cloud Services Based on Network?

Based on their network, cloud services can be divided into four types, namely:

1. Public Cloud

A public cloud is a cloud service that is publicly available and has an infrastructure network spread across the globe. This means that anyone in the world can use this cloud service, as long as they have internet access.

Public cloud services can be used for free without limits, but some companies also offer additional features that users can enjoy if they choose to purchase them or subscribe. Examples of public cloud services include Gmail, Google Drive, YouTube, Instagram, WhatsApp, and many more.

2. Private Cloud

A private cloud is a cloud service that is private in nature. This means that only administrators and authorized users can access this cloud service. A private cloud can be used for personal, business, or government purposes.

Unlike a public cloud, which can be accessed for free as much as you like, private cloud services are not available for free; you must purchase them from a cloud service provider. However, a private cloud offers higher security, customization capabilities, and hybrid integrity.

3. Hybrid Cloud

Simply put, a hybrid cloud is a combination of public and private clouds. In theory, there are various possible combinations of these two cloud services. In practice, however, the private cloud typically serves as the primary infrastructure, while the public cloud acts as a backup.

Hybrid clouds can be used for various everyday IT needs, such as storage. This is because the way this cloud service operates is essentially the same as that of standard cloud services.

4. Community Cloud

A community cloud is a cloud service specifically designed for the needs of communities, organizations, or institutions. This cloud service is generally managed internally to meet various needs. However, users can also engage a third party to manage it.

What Are the Service Models in a Public Cloud?

Public cloud service models can be divided into three categories:

Software-as-a-Service (SaaS)
Platform-as-a-Service (PaaS)
Infrastructure-as-a-Service (IaaS)

Here is a detailed explanation of each service model.

1. Software-as-a-Service (SaaS)

Software-as-a-Service (SaaS) is a service model that provides software application licenses to users through a subscription. Once a license is obtained, users can access all available features. Examples of SaaS include Microsoft Office 365, Dropbox, Adobe Creative Cloud, and many more.

2. Platform-as-a-Service (PaaS)

Platform-as-a-Service (PaaS) is a service model that is very similar to SaaS. The difference lies in how software licenses are obtained; through PaaS, users can develop software or applications on a provided platform.

The most popular examples of PaaS are Amazon Web Services (AWS) and Microsoft Azure.

3. Infrastructure-as-a-Service (IaaS)

Essentially, Infrastructure-as-a-Service (IaaS) consists of servers—whether physical or virtual—within a cloud computing environment. This means that all the resources users need are already available within that cloud system. An example of IaaS is Virtual Data Center (VDC) from Cloudmatika.

Virtual Data Center is a cloud computing technology used to store data securely and reliably. With this technology, you can have a virtual server—ranging from small to large—to support more complex infrastructure with different functions, operating systems, and virtual machine specifications.

What Should You Consider When Choosing a Cloud Computing Service?

When choosing a cloud computing service, there are several factors you should consider. Here are some key considerations when selecting a cloud computing service.

1. Needs

When selecting a cloud computing service, the first thing to consider is your specific needs. Make sure you choose a cloud service that aligns with your requirements. For example, if you only need a cloud service to manage the configuration of an application, you can use a Platform-as-a-Service (PaaS) solution.

2. Security

Security is a priority that must always be considered, especially when it comes to data and information. When selecting a cloud computing service, you must ensure that stored files remain secure and protected.

Make sure the cloud computing service provider has implemented strict security measures. Additionally, ensure that the cloud computing service you choose complies with GDPR (General Data Protection Regulation) standards.

3. Features

Every cloud computing service offers different features. Therefore, these features must be considered when selecting a service. For example, one of the most important features of cloud computing is Disaster Recovery. This feature enables the recovery of data following an unforeseen incident.

In addition, there are specialized features related to computing resources, monitoring, security, deployment, and even user experience. Be sure to ask the cloud computing service provider about all the features available.

4. Cost

In addition to the three points above, cost is another factor to consider when selecting a cloud computing service. Make sure the cloud computing service you choose aligns with your needs and budget so you can maximize its use and avoid unnecessary expenses.

That concludes our explanation of what cloud computing is, how it works, and its different types. If you’re interested in using cloud computing services, you can explore various cloud services from Cloudmatika. If you’re interested or have any questions, you can contact the Cloudmatika team here.