What is the cloud and how does it work?

A cloud uses physical servers in data centres to provide storage space, computing power, and software over the internet. Busi­nesses and private users can access these resources in­de­pend­ently of location and in encrypted form, adjusting them flexibly to their needs. Cloud computing therefore replaces fixed, on-premises IT systems with a flexible, scalable, and more efficient al­tern­at­ive.

Out­sourcing storage and ap­plic­a­tions to the cloud—a term derived from the symbolic depiction of invisible IT in­fra­struc­ture as a ‘cloud’—offers a high degree of flex­ib­il­ity. Resources can be scaled up or down as needed, providing the found­a­tion for modern scalab­il­ity.

Cloud computing has been around for decades, but it only gained real momentum with the rise of the internet. Today, pro­fes­sion­al cloud providers adhere to com­pre­hens­ive security standards, implement zero-trust ar­chi­tec­tures, and operate data centres compliant with UK GDPR and the Data Pro­tec­tion Act 2018—sig­ni­fic­antly al­le­vi­at­ing earlier concerns about data privacy and security.

What can you use the cloud for?

Cloud services shift data, ap­plic­a­tions, and computing tasks to external servers instead of keeping them on local machines. This allows users to rent storage and pro­cessing power on demand—without pur­chas­ing or main­tain­ing their own hardware. Many programs run directly in a web browser or app, elim­in­at­ing the need for local in­stall­a­tion.

Key use cases at a glance:

• Store, back up, and sync files across multiple devices
• Access software directly in the browser (SaaS) without in­stalling it locally
• Scale computing power as needed (e.g., for analytics, de­vel­op­ment, or AI workloads)
• Col­lab­or­ate with teams using cloud-based tools
• Automate backup creation and recovery
• Host websites, online stores, and web ap­plic­a­tions
• Run virtual servers, databases, or complete IT in­fra­struc­tures

Cloud computing plays a central role in real-time col­lab­or­a­tion. Many modern col­lab­or­a­tion tools are cloud-based, enabling teams to work together re­gard­less of location. Cloud platforms also provide the found­a­tion for hosting websites, e-commerce stores, and ap­plic­a­tions, as well as operating virtual machines, databases, and de­vel­op­ment en­vir­on­ments.

Another core function of the cloud is reliable data backup. Backups can be created and restored auto­mat­ic­ally, reducing manual effort and min­im­ising risk. Pro­fes­sion­al data centres rely on redundant storage systems and extensive technical and physical security measures to ensure high avail­ab­il­ity and round-the-clock access to data.

How does a cloud work?

At its core, the cloud functions similarly to a corporate network. Users log in with their cre­den­tials to access data and ap­plic­a­tions. The key dif­fer­ence is that cloud servers are not located on-site but hosted in pro­fes­sion­ally managed data centres. In these data centres, storage capacity, computing power, and memory are delivered in vir­tu­al­ised form and managed through automated control and security systems. Users connect via web in­ter­faces, browsers, or dedicated ap­plic­a­tions—allowing them to manage files much like they would on a local hard drive and run software directly online.

What are the different types of clouds?

To select the model that best aligns with their IT in­fra­struc­ture, companies need to un­der­stand the main types of cloud de­ploy­ments. These models differ primarily in who manages the resources, how access is granted, and the level of flex­ib­il­ity and control they offer—ranging from tightly con­trolled internal en­vir­on­ments to highly scalable, ex­tern­ally operated services.

Private cloud

When companies provide their own servers or dedicated resources ex­clus­ively for their employees, this is referred to as a private cloud. Data and ap­plic­a­tions are ac­cess­ible only in­tern­ally, which is par­tic­u­larly important when handling sensitive in­form­a­tion or data subject to the UK GDPR and the Data Pro­tec­tion Act 2018. Private clouds offer a high level of control, but they require sig­ni­fic­ant ad­min­is­trat­ive effort and can be costly, as main­ten­ance, op­er­a­tions, and security remain entirely the company’s re­spons­ib­il­ity.

Public cloud

A public cloud is delivered over the internet and managed by a third-party provider. The provider handles in­fra­struc­ture main­ten­ance, security measures, system updates, and scalab­il­ity. Or­gan­isa­tions benefit from maximum flex­ib­il­ity and avoid the cost and effort of running their own hardware. Public cloud services are stand­ard­ised, rapidly de­ploy­able, and par­tic­u­larly well suited for dynamic or fluc­tu­at­ing workloads.

Hybrid cloud

The hybrid cloud combines elements of both models. Highly sensitive or business-critical data remains on-premises or within a private cloud, while less sensitive ap­plic­a­tions and workloads run in the public cloud. This approach allows or­gan­isa­tions to meet com­pli­ance and security re­quire­ments while still taking advantage of the flex­ib­il­ity and scalab­il­ity offered by public cloud services.

How is data stored in a cloud?

Data in the cloud is managed much like files on a local hard drive, meaning it can be accessed, edited, moved, or deleted as needed. The dif­fer­ence is that access happens through web in­ter­faces, apps, or syn­chron­isa­tion clients that create a dedicated cloud folder on your device instead of using a physical drive. From any connected device, users can create folders, upload documents, modify files, or remove them. Modern cloud platforms also offer features such as automatic syn­chron­isa­tion, file ver­sion­ing, shared work­spaces, and secure backups of databases, smart­phones, and other endpoints.

Within the data centre, in­form­a­tion is encrypted and typically stored re­dund­antly—often using dis­trib­uted object storage systems. Data transfers between user devices and the cloud are protected through encrypted con­nec­tions such as TLS. The cloud provider manages internal data or­gan­isa­tion, re­dund­ancy, and routine backup processes.

If servers are located in the United Kingdom, providers must comply with the UK GDPR and the Data Pro­tec­tion Act 2018. These reg­u­la­tions impose strict re­quire­ments for data pro­tec­tion, access controls, physical safe­guards, and logging. This ensures that stored data is protected through com­pre­hens­ive technical and or­gan­isa­tion­al measures and remains reliably available at all times.

When does using a cloud make sense?

Whether adopting a cloud solution makes sense depends on several factors and cannot be de­term­ined solely by the amount of data involved. The key con­sid­er­a­tions are how flexible, secure, and cost-efficient the or­gan­isa­tion’s IT in­fra­struc­ture needs to be. A thorough cost-benefit analysis should compare in­vest­ments in hardware, main­ten­ance, software licences, personnel, and future capacity re­quire­ments with the recurring costs of cloud services.

With cloud solutions, expenses for main­ten­ance, updates, security, and hardware upgrades are typically included in the service fees. The provider centrally manages the in­fra­struc­ture and keeps it up to date auto­mat­ic­ally. This reduces the burden on companies to operate and secure their own servers or to purchase and maintain on-premises software licences.

Many providers also offer a free entry option, such as limited storage packages or trial periods. This enables or­gan­isa­tions to move initial workloads to the cloud and gain practical ex­per­i­ence before trans­ition­ing larger or mission-critical systems.