What is a Cloud Company?

A cloud company or cloud service provider is a company that offers cloud-based services such as SaaS (Software as a Service), IaaS (Infrastructure as a Service), or PaaS (Platform as a Service). In this guide, we’ll help you understand what a cloud company is, the services these organisations offer, and the advantages and disadvantages of partnering with a cloud company.

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What is a Cloud Provider?

A cloud provider is an organisation that offers cloud computing services on demand. The provider handles the deployment, hosting, management, maintenance, and upgrades for the customer, and the customer benefits from the services with an “as-as-Service” license scheme.

Some examples include Amazon Web Services-AWS, Oracle Cloud Infrastructure, Microsoft Azure, IBM Cloud, and Google Cloud platform.

How Does a Cloud Service Provider Work?

A cloud service provider basically runs the infrastructure and rents the services to customers with a license. It’s just like how a landlord owns multiple properties and rents them to tenants at a weekly or monthly rental rate.

If a tenant doesn’t require a full house, they can share a house with other tenants if the landlord allows it. Similarly, companies that use cloud services only pay for the resources they need, maximising efficiency.

Is My Data Secure with a Cloud Computing Company?

Reputable cloud service providers incorporate advanced security measures to protect their infrastructure and maintain high availability.

However, in most cases, the responsibility for data protection falls on the organisation, where the organisation is responsible for protecting its own data.

Some cloud computing service providers offer security protection as an extra service with separate costs. Cloud providers that don’t offer such services often recommend their customers to work with a third-party backup solution provider to protect their data.

Types of Cloud Service Providers

Cloud service providers can be classified in two ways: the type of services offered, and the cloud deployment model.

By Cloud Delivery Model

Cloud providers fall into one of these cloud delivery models: IaaS, SaaS, and PaaS providers.

IaaS Providers

IaaS (Infrastructure as a Service) cloud service providers enable organisations to rent infrastructure components such as networking, storage, and cloud servers. These components are hosted on the provider’s data centres, sparing the organisation the costs and operations of hosting them on-premises. Many IaaS providers also offer additional services like security, automation, and monitoring.

SaaS Providers

SaaS (Software as a Service) providers offer software cloud solutions on a subscription basis. These include customer relationship management, data analytics, machine learning, productivity, human resources management, and diagramming solutions. The vendors host and provide these solutions 100% online.

SaaS providers may either use their own cloud services or offer them in collaboration with another third-party cloud provider.

PaaS Providers

PaaS (Platform as a Service) vendors provide cloud infrastructure services that customers can use to develop, deploy, and manage applications. PaaS solutions offer more flexibility than IaaS solutions but don’t provide the same level of control over the operating system.

By Deployment Method

Typically, cloud computing companies may offer their customers one or more of the following deployment methods: hybrid cloud, public cloud, or private cloud.

Public Cloud

A public cloud service provider owns and operates shared data centres where multiple customers share their resources. These data centres offer resources like virtual machines, software applications, and storage systems in a multi-tenant environment.

Public data centres are designed in a way that lets users access their resources using the same physical servers that host them. At the same time, each user’s data is isolated for privacy and security purposes.

Public cloud data centres are often used to host SaaS applications. They’re also scalable and flexible.

Private Cloud

Private cloud providers offer dedicated resources for each customer. Some businesses prefer private cloud over public cloud providers to have more control over the infrastructure and better security. They are also a more favourable choice for businesses that need to meet strict compliance requirements related to data storage and handling, particularly in the medical and financial industries.

Hybrid Cloud

Hybrid clouds combine public and private cloud services. Instead of exclusively relying on either public or private cloud services, businesses can reap the benefits of both.

Because the public cloud is cheaper and more easily scalable, many organisations prefer to use it over the private cloud. At the same time, private clouds offer better security and make it easier for businesses to meet compliance requirements. In a multi-cloud environment, businesses use the public cloud for non-sensitive data to reduce costs and maximise efficiency.

Tips for Choosing Cloud Companies

When choosing a cloud service provider, you need to:

Consider the Features and Tools

When deciding on a cloud service provider, check the list of features and tools they offer and how these will fit with your organisation.

Do you need a hosted server? Are you planning to colocate your data in a shared data centre? How about cloud connectivity? All of these are separate features that cloud providers may or may not offer as a part of their portfolios.

Consider Your Business Requirements

What cloud services do you need? Are you able to handle these services within your organisation? Depending on your answers, you can choose a cloud service provider that offers services that match your organisation’s requirements and capabilities.

For example, if you’re searching for ways to improve customer relationships, look for a cloud provider that offers customer relationship management software.

On the other hand, if you need a platform that your IT team can use to develop and launch new software products, PaaS providers that offer a suitable development environment would be your best bet.

Benefits of Engaging a Cloud Service Provider

Some of the advantages of partnering with a cloud service provider include:

Cost Efficiency and Predictability

Cloud companies give you instant access to solutions when you need them. There’s no need to invest in resources and development because the solutions are already there, hosted on the provider’s infrastructure. This eliminates the initial capital investment.

At the same time, you’re paying for the services in a predictable way with the pay-per-use model. It’s a single, fixed monthly bill.

Flexibility and Customisation

Cloud providers enable you to customise the solutions based on your business requirements and budget. Most cloud providers have abandoned the “one price for all” model in exchange for offering more personalised packages that put your requirements first.

If you need only some features of the cloud company’s product, you’ll only use and pay for these features.

Better Security

Cloud companies utilise advanced security measures that keep your data protected. It often comes at an extra cost, but again, you won’t have to spend any upfront costs; it’ll just be an additional fixed cost to your monthly bill. This gives you access to state-of-the-art security talent and protocols without having to consume your resources for them.

On top of that, most cloud companies offer backup and disaster recovery solutions that ensure your data is never lost or breached. In case of disasters, such as natural disasters, power outages, cyberattacks, or even human error, your data will be restored quickly so you can resume your operations normally.

Scalability

Cloud services can be scaled up or down very easily and with minimal costs. As your company grows, and the demand for its services increases, you can simply contact your cloud provider and discuss your scaling options.

Traditionally, you’d have to invest in costly infrastructure upgrades that’ll take forever to complete. With a cloud provider, you don’t have to worry about any of this.

Round-the-Clock Support

Cloud companies offer 24/7 technical and customer support. So, whenever you’re facing any issues or incidents, you can be sure that you’ll get help quickly, even outside business hours. Fast response times with remote cloud services and continuous monitoring are also expected when you opt for a cloud provider. If you have an issue, you should expect to get it solved on the same day.

On top of that, cloud service providers take care of upgrades on your behalf, ensuring that you’re always enjoying the latest cutting-edge software and hardware capabilities.

Potential Challenges

Despite having numerous advantages, working with a cloud provider may not always be a smooth experience. There are some challenges and downsides, but these may vary from one vendor to another.

Security

Trusting a cloud provider with your data can be risky. Since you don’t oversee everything yourself, you’re 100% reliant on your provider’s security implementations for data protection. For that reason, you need to make sure you’re working with a reputable provider that’s known for utilising advanced security technologies.
Otherwise, prepare yourself for possible security breaches, ransomware encryption, or compromised credentials.

Hidden Costs

Some cloud providers aren’t 100% honest with their pricing. You may agree on a specific monthly subscription cost, only to find out that you have to pay for extra services like removing on-premises footprints, unplanned data usage, or additional monitoring needs.

Long Cloud Migration Duration

Migrating to the cloud can take a while, and you may not have access to your data for several weeks until the migration is complete. Your best bet here is to make sure your critical data is moved first so you can access it quickly.

Availability Issues

Many cloud providers guarantee 99.999% uptime. However, in reality, service availability may not always be on par with these promises. The provider will likely compensate you one way or another, but that doesn’t change the fact that you won’t have access to your data until the systems are back online.

Vendor Lock-in

Some cloud providers use vendor lock-in as a way to forcefully retain customers for as long as possible and make it harder for them to switch to another provider. This is usually due to the large costs associated with transferring data.

Why Choose an Australian Regional Cloud Service Provider?

The data centre industry has skyrocketed in Australia in recent years. According to recent estimates, the third-party cloud service provider market is expected to reach a compound annual growth rate (CAGR) of 4.47%, with a total market volume of US$6.04bn by 2027.

So if your organisation is based in Australia, there has never been a better time to opt for an Australian data centre. Data transfer rates are faster and less costly because the data centres are closer to your business. Plus, you’ll be able to enjoy the following perks:

Compliance

Emerging laws and acts regarding handling customers’ data in Australia have caused businesses to shift to local cloud providers to meet compliance requirements. Moreover, data centres in Australia are compliant with the Australian government’s encryption and cybersecurity requirements, ensuring that your data is always safe.

Transparency

Australia-based data centres are much more transparent when it comes to terms of services. This way, you can rest assured that your sensitive data’s security is maintained.

Data Governance

Keeping your data in overseas data centres doesn’t guarantee data confidentiality or sovereignty. A data centre located in a country other than Australia is subject to the country’s local laws and legislation. At times, you may find yourself forced to disclose information to unauthorised users.

Opting for an Australian data centre saves you from all of these processes and red tape.

Location

The physical proximity of the data centre to your business enables faster and less-restricted communication between you and your provider. For instance, if you want to upgrade your plan or inquire about anything, the process will be much easier when the data centre is close to you.

Plus, you can choose a data centre location where natural disasters are less likely to happen.

Key Features of Cloud Companies

Cloud companies offer these services:

Hosted servers

Hosting your server in the cloud can be a smart and cost-effective way to grow your business. There are two types of hosted servers: dedicated and virtual machines. Dedicated servers are more suitable for businesses that need high computing power, while virtual machines are ideal for scalability and cost efficiency.

Cloud-based storage as a service

Cloud storage lets you store production or backup data offsite in remote servers, which can be more efficient and secure than on-premises storage infrastructure.

Data colocation

Many cloud providers offer data colocation services that let you house your organisation’s servers, networking, security, or storage hardware in a multi-tenant data centre. With a colocation service, you can rent rack space based on your storage and computing requirements. Server collocation provides better security, redundancy, and connectivity when compared to other solutions.

Cloud connectivity

Cloud providers offer cloud connectivity that involves establishing between your private network and the public cloud to improve your connection’s speed and stability. Cloud connectivity is more efficient and affordable than other connectivity methods.