According to Statista, the U.S. cloud computing industry generated about $206 billion in revenue in 2022. Expand that globally, and the industry has a value of $483.98 billion. Growth is on the horizon, too, with Grand View Research stating that the various types of cloud computing will achieve a compound annual growth rate (CAGR) of 14.1% between 2023 and 2030.
The simple message is that cloud computing applications are big business.
But that won’t mean much to you if you don’t understand the basics of cloud computing infrastructure and how it all works. This article digs into the cloud computing basics so you can better understand what it means to deliver services via the cloud.
The Cloud Computing Definition
Let’s answer the key question immediately – what is cloud computing?
Microsoft defines cloud computing as the delivery of any form of computing services, such as storage or software, over the internet. Taking software as an example, cloud computing allows you to use a company’s software online rather than having to buy it as a standalone package that you install locally on your computer.
For the super dry definition, cloud computing is a model of computing that provides shared computer processing resources and data to computers and other devices on demand over the internet.
Cloud Computing Meaning
Though the cloud computing basics are pretty easy to grasp – you get services over the internet – what it means in a practical context is less clear.
In the past, businesses and individuals needed to buy and install software locally on their computers or servers. This is the typical ownership model. You hand over your money for a physical product, which you can use as you see fit.
You don’t purchase a physical product when using software via the cloud. You also don’t install that product, whatever it may be, physically on your computer. Instead, you receive the services managed directly by the provider, be they storage, software, analytics, or networking, over the internet. You (and your team) usually install a client that connects to the vendor’s servers, which contain all the necessary computational, processing, and storage power.
What Is Cloud Computing With Examples?
Perhaps a better way to understand the concept is with some cloud computing examples. These should give you an idea of what cloud computing looks like in practice:
- Google Drive – By integrating the Google Docs suite and its collaborative tools, Google Drive lets you create, save, edit, and share files remotely via the internet.
- Dropbox – The biggest name in cloud storage offers a pay-as-you-use service that enables you to increase your available storage space (or decrease it) depending on your needs.
- Amazon Web Services (AWS) – Built specifically for coders and programmers, AWS offers access to off-site remote servers.
- Microsoft Azure – Microsoft markets Azure as the only “consistent hybrid cloud.” This means Azure allows a company to digitize and modernize their existing infrastructure and make it available over the cloud.
- IBM Cloud – This service incorporates over 170 services, ranging from simple databases to the cloud servers needed to run AI programs.
- Salesforce – As the biggest name in the customer relationship management space, Salesforce is one of the biggest cloud computing companies. At the most basic level, it lets you maintain databases filled with details about your customers.
Common Cloud Computing Applications
Knowing what cloud computing is won’t help you much if you don’t understand its use cases. Here are a few ways you could use the cloud to enhance your work or personal life:
- Host websites without needing to keep on-site servers.
- Store files and data remotely, as you would with Dropbox or Salesforce. Most of these providers also provide backup services for disaster recovery.
- Recover lost data with off-site storage facilities that update themselves in real-time.
- Manage a product’s entire development cycle across one workflow, leading to easier bug tracking and fixing alongside quality assurance testing.
- Collaborate easily using platforms like Google Drive and Dropbox, which allow workers to combine forces on projects as long as they maintain an internet connection.
- Stream media, especially high-definition video, with cloud setups that provide the resources that an individual may not have built into a single device.
The Basics of Cloud Computing
With the general introduction to cloud computing and its applications out of the way, let’s get down to the technical side. The basics of cloud computing are split into five categories:
- Infrastructure
- Services
- Benefits
- Types
- Challenges
Cloud Infrastructure
The interesting thing about cloud infrastructure is that it simulates a physical build. You’re still using the same hardware and applications. Servers are in play, as is networking. But you don’t have the physical hardware at your location because it’s all off-site and stored, maintained, and updated by the cloud provider. You get access to the hardware, and the services it provides, via your internet connection.
So, you have no physical hardware to worry about besides the device you’ll use to access the cloud service.
Off-site servers handle storage, database management, and more. You’ll also have middleware in play, facilitating communication between your device and the cloud provider’s servers. That middleware checks your internet connection and access rights. Think of it like a bridge that connects seemingly disparate pieces of software so they can function seamlessly on a system.
Services
Cloud services are split into three categories:
Infrastructure as a Service (IaaS)
In a traditional IT setup, you have computers, servers, data centers, and networking hardware all combined to keep the front-end systems (i.e., your computers) running. Buying and maintaining that hardware is a huge cost burden for a business.
IaaS offers access to IT infrastructure, with scalability being a critical component, without forcing an IT department to invest in costly hardware. Instead, you can access it all via an internet connection, allowing you to virtualize traditionally physical setups.
Platform as a Service (PaaS)
Imagine having access to an entire IT infrastructure without worrying about all the little tasks that come with it, such as maintenance and software patching. After all, those small tasks build up, which is why the average small business spends an average of 6.9% of its revenue on dealing with IT systems each year.
PaaS reduces those costs significantly by giving you access to cloud services that manage maintenance and patching via the internet. On the simplest level, this may involve automating software updates so you don’t have to manually check when software is out of date.
Software as a Service (SaaS)
If you have a rudimentary understanding of cloud computing, the SaaS model is the one you are likely to understand the most. A cloud provider builds software and makes it available over the internet, with the user paying for access to that software in the form of a subscription. As long as you keep paying your monthly dues, you get access to the software and any updates or patches the service provider implements.
It’s with SaaS that we see the most obvious evolution of the traditional IT model. In the past, you’d pay a one-time fee to buy a piece of software off the shelf, which you then install and maintain yourself. SaaS gives you constant access to the software, its updates, and any new versions as long as you keep paying your subscription. Compare the standalone versions of Microsoft Office with Microsoft Office 365, especially in their range of options, tools, and overall costs.
Benefits of Cloud Computing
The traditional model of buying a thing and owning it worked for years. So, you may wonder why cloud computing services have overtaken traditional models, particularly on the software side of things. The reason is that cloud computing offers several advantages over the old ways of doing things:
- Cost savings – Cloud models allow companies to spread their spending over the course of a year. It’s the difference between spending $100 on a piece of software versus spending $10 per month to access it. Sure, the one-off fee ends up being less, but paying $10 per month doesn’t sting your bank balance as much.
- Scalability – Linking directly to cost savings, you don’t need to buy every element of a software to access the features you need when using cloud services. You pay for what you use and increase the money you spend as your business scales and you need deeper access.
- Mobility – Cloud computing allows you to access documents and services anywhere. Where before, you were tied to your computer desk if you wanted to check or edit a document, you can now access that document on almost any device.
- Flexibility – Tied closely to mobility, the flexibility that comes from cloud computing is great for users. Employees can head out into the field, access the services they need to serve customers, and send information back to in-house workers or a customer relationship management (CRM) system.
- Reliability – Owning physical hardware means having to deal with the many problems that can affect that hardware. Malfunctions, viruses, and human error can all compromise a network. Cloud service providers offer reliability based on in-depth expertise and more resources dedicated to their hardware setups.
- Security – The done-for-you aspect of cloud computing, particularly concerning maintenance and updates, means one less thing for a business to worry about. It also absorbs some of the costs of hardware and IT maintenance personnel.
Types of Cloud Computing
The types of cloud computing are as follows:
- Public Cloud – The cloud provider manages all hardware and software related to the service it provides to users.
- Private Cloud – An organization develops its suite of services, all managed via the cloud but only accessible to group members.
- Hybrid Cloud – Combines a public cloud with on-premises infrastructure, allowing applications to move between each.
- Community Cloud – While the community cloud has many similarities to a public cloud, it’s restricted to only servicing a limited number of users. For example, a banking service may only get offered to the banking community.
Challenges of Cloud Computing
Many a detractor of cloud computing notes that it isn’t as issue-proof as it may seem. The challenges of cloud computing may outweigh its benefits for some:
- Security issues related to cloud computing include data privacy, with cloud providers obtaining access to any sensitive information you store on their servers.
- As more services switch over to the cloud, managing the costs related to every subscription you have can feel like trying to navigate a spider’s web of software.
- Just because you’re using a cloud-based service, that doesn’t mean said service handles compliance for you.
- If you don’t perfectly follow a vendor’s terms of service, they can restrict your access to their cloud services remotely. You don’t own anything.
- You can’t do anything if a service provider’s servers go down. You have to wait for them to fix the issue, leaving you stuck without access to the software for which you’re paying.
- You can’t call a third party to resolve an issue your systems encounter with the cloud service because the provider is the only one responsible for their product.
- Changing cloud providers and migrating data can be challenging, so even if one provider doesn’t work well, companies may hesitate to look for other options due to sunk costs.
Cloud Computing Is the Present and Future
For all of the challenges inherent in the cloud computing model, it’s clear that it isn’t going anywhere. Techjury tells us that about 57% of companies moved, or were in the process of moving, their workloads to cloud services in 2022.
That number will only increase as cloud computing grows and develops.
So, let’s leave you with a short note on cloud computing. It’s the latest step in the constant evolution of how tech companies offer their services to users. Questions of ownership aside, it’s a model that students, entrepreneurs, and everyday people must understand.
-
From the same author
Read the articleAccording to Statista, the U.S. cloud computing industry generated about $206 billion in revenue in 2022. Expand that globally, and the industry has a value of $483.98 billion. Growth is on the horizon, too, with Grand View Research stating that the various types of cloud computing will achieve a compound annual growth rate (CAGR) of 14.1% between 2023 and 2030.
The simple message is that cloud computing applications are big business.
But that won’t mean much to you if you don’t understand the basics of cloud computing infrastructure and how it all works. This article digs into the cloud computing basics so you can better understand what it means to deliver services via the cloud.
The Cloud Computing Definition
Let’s answer the key question immediately – what is cloud computing?
Microsoft defines cloud computing as the delivery of any form of computing services, such as storage or software, over the internet. Taking software as an example, cloud computing allows you to use a company’s software online rather than having to buy it as a standalone package that you install locally on your computer.
For the super dry definition, cloud computing is a model of computing that provides shared computer processing resources and data to computers and other devices on demand over the internet.
Cloud Computing Meaning
Though the cloud computing basics are pretty easy to grasp – you get services over the internet – what it means in a practical context is less clear.
In the past, businesses and individuals needed to buy and install software locally on their computers or servers. This is the typical ownership model. You hand over your money for a physical product, which you can use as you see fit.
You don’t purchase a physical product when using software via the cloud. You also don’t install that product, whatever it may be, physically on your computer. Instead, you receive the services managed directly by the provider, be they storage, software, analytics, or networking, over the internet. You (and your team) usually install a client that connects to the vendor’s servers, which contain all the necessary computational, processing, and storage power.
What Is Cloud Computing With Examples?
Perhaps a better way to understand the concept is with some cloud computing examples. These should give you an idea of what cloud computing looks like in practice:
- Google Drive – By integrating the Google Docs suite and its collaborative tools, Google Drive lets you create, save, edit, and share files remotely via the internet.
- Dropbox – The biggest name in cloud storage offers a pay-as-you-use service that enables you to increase your available storage space (or decrease it) depending on your needs.
- Amazon Web Services (AWS) – Built specifically for coders and programmers, AWS offers access to off-site remote servers.
- Microsoft Azure – Microsoft markets Azure as the only “consistent hybrid cloud.” This means Azure allows a company to digitize and modernize their existing infrastructure and make it available over the cloud.
- IBM Cloud – This service incorporates over 170 services, ranging from simple databases to the cloud servers needed to run AI programs.
- Salesforce – As the biggest name in the customer relationship management space, Salesforce is one of the biggest cloud computing companies. At the most basic level, it lets you maintain databases filled with details about your customers.
Common Cloud Computing Applications
Knowing what cloud computing is won’t help you much if you don’t understand its use cases. Here are a few ways you could use the cloud to enhance your work or personal life:
- Host websites without needing to keep on-site servers.
- Store files and data remotely, as you would with Dropbox or Salesforce. Most of these providers also provide backup services for disaster recovery.
- Recover lost data with off-site storage facilities that update themselves in real-time.
- Manage a product’s entire development cycle across one workflow, leading to easier bug tracking and fixing alongside quality assurance testing.
- Collaborate easily using platforms like Google Drive and Dropbox, which allow workers to combine forces on projects as long as they maintain an internet connection.
- Stream media, especially high-definition video, with cloud setups that provide the resources that an individual may not have built into a single device.
The Basics of Cloud Computing
With the general introduction to cloud computing and its applications out of the way, let’s get down to the technical side. The basics of cloud computing are split into five categories:
- Infrastructure
- Services
- Benefits
- Types
- Challenges
Cloud Infrastructure
The interesting thing about cloud infrastructure is that it simulates a physical build. You’re still using the same hardware and applications. Servers are in play, as is networking. But you don’t have the physical hardware at your location because it’s all off-site and stored, maintained, and updated by the cloud provider. You get access to the hardware, and the services it provides, via your internet connection.
So, you have no physical hardware to worry about besides the device you’ll use to access the cloud service.
Off-site servers handle storage, database management, and more. You’ll also have middleware in play, facilitating communication between your device and the cloud provider’s servers. That middleware checks your internet connection and access rights. Think of it like a bridge that connects seemingly disparate pieces of software so they can function seamlessly on a system.
Services
Cloud services are split into three categories:
Infrastructure as a Service (IaaS)
In a traditional IT setup, you have computers, servers, data centers, and networking hardware all combined to keep the front-end systems (i.e., your computers) running. Buying and maintaining that hardware is a huge cost burden for a business.
IaaS offers access to IT infrastructure, with scalability being a critical component, without forcing an IT department to invest in costly hardware. Instead, you can access it all via an internet connection, allowing you to virtualize traditionally physical setups.
Platform as a Service (PaaS)
Imagine having access to an entire IT infrastructure without worrying about all the little tasks that come with it, such as maintenance and software patching. After all, those small tasks build up, which is why the average small business spends an average of 6.9% of its revenue on dealing with IT systems each year.
PaaS reduces those costs significantly by giving you access to cloud services that manage maintenance and patching via the internet. On the simplest level, this may involve automating software updates so you don’t have to manually check when software is out of date.
Software as a Service (SaaS)
If you have a rudimentary understanding of cloud computing, the SaaS model is the one you are likely to understand the most. A cloud provider builds software and makes it available over the internet, with the user paying for access to that software in the form of a subscription. As long as you keep paying your monthly dues, you get access to the software and any updates or patches the service provider implements.
It’s with SaaS that we see the most obvious evolution of the traditional IT model. In the past, you’d pay a one-time fee to buy a piece of software off the shelf, which you then install and maintain yourself. SaaS gives you constant access to the software, its updates, and any new versions as long as you keep paying your subscription. Compare the standalone versions of Microsoft Office with Microsoft Office 365, especially in their range of options, tools, and overall costs.
Benefits of Cloud Computing
The traditional model of buying a thing and owning it worked for years. So, you may wonder why cloud computing services have overtaken traditional models, particularly on the software side of things. The reason is that cloud computing offers several advantages over the old ways of doing things:
- Cost savings – Cloud models allow companies to spread their spending over the course of a year. It’s the difference between spending $100 on a piece of software versus spending $10 per month to access it. Sure, the one-off fee ends up being less, but paying $10 per month doesn’t sting your bank balance as much.
- Scalability – Linking directly to cost savings, you don’t need to buy every element of a software to access the features you need when using cloud services. You pay for what you use and increase the money you spend as your business scales and you need deeper access.
- Mobility – Cloud computing allows you to access documents and services anywhere. Where before, you were tied to your computer desk if you wanted to check or edit a document, you can now access that document on almost any device.
- Flexibility – Tied closely to mobility, the flexibility that comes from cloud computing is great for users. Employees can head out into the field, access the services they need to serve customers, and send information back to in-house workers or a customer relationship management (CRM) system.
- Reliability – Owning physical hardware means having to deal with the many problems that can affect that hardware. Malfunctions, viruses, and human error can all compromise a network. Cloud service providers offer reliability based on in-depth expertise and more resources dedicated to their hardware setups.
- Security – The done-for-you aspect of cloud computing, particularly concerning maintenance and updates, means one less thing for a business to worry about. It also absorbs some of the costs of hardware and IT maintenance personnel.
Types of Cloud Computing
The types of cloud computing are as follows:
- Public Cloud – The cloud provider manages all hardware and software related to the service it provides to users.
- Private Cloud – An organization develops its suite of services, all managed via the cloud but only accessible to group members.
- Hybrid Cloud – Combines a public cloud with on-premises infrastructure, allowing applications to move between each.
- Community Cloud – While the community cloud has many similarities to a public cloud, it’s restricted to only servicing a limited number of users. For example, a banking service may only get offered to the banking community.
Challenges of Cloud Computing
Many a detractor of cloud computing notes that it isn’t as issue-proof as it may seem. The challenges of cloud computing may outweigh its benefits for some:
- Security issues related to cloud computing include data privacy, with cloud providers obtaining access to any sensitive information you store on their servers.
- As more services switch over to the cloud, managing the costs related to every subscription you have can feel like trying to navigate a spider’s web of software.
- Just because you’re using a cloud-based service, that doesn’t mean said service handles compliance for you.
- If you don’t perfectly follow a vendor’s terms of service, they can restrict your access to their cloud services remotely. You don’t own anything.
- You can’t do anything if a service provider’s servers go down. You have to wait for them to fix the issue, leaving you stuck without access to the software for which you’re paying.
- You can’t call a third party to resolve an issue your systems encounter with the cloud service because the provider is the only one responsible for their product.
- Changing cloud providers and migrating data can be challenging, so even if one provider doesn’t work well, companies may hesitate to look for other options due to sunk costs.
Cloud Computing Is the Present and Future
For all of the challenges inherent in the cloud computing model, it’s clear that it isn’t going anywhere. Techjury tells us that about 57% of companies moved, or were in the process of moving, their workloads to cloud services in 2022.
That number will only increase as cloud computing grows and develops.
So, let’s leave you with a short note on cloud computing. It’s the latest step in the constant evolution of how tech companies offer their services to users. Questions of ownership aside, it’s a model that students, entrepreneurs, and everyday people must understand.
Read the articleIt’s hard to find a person who uses the internet but doesn’t enjoy at least one cloud computing service. “Cloud computing” sounds complex, but it’s actually all around you. The term encompasses every tool, app, and service that’s delivered via the internet.
The two popular examples are Dropbox and Google Drive. These cloud-based storage spaces allow you to keep your files at arm’s reach and access them in a few clicks. Zoom is also a cloud-based service – it makes communication a breeze.
Cloud computing can be classified into four types: public, private, hybrid, and community. These four types belong to one of the three cloud computing service models: infrastructure as a service, platform as a service, or software as a service.
It’s time to don a detective cap and explore the mystery hidden behind cloud computing.
Cloud Computing Deployment Models
- Public cloud
- Private cloud
- Hybrid cloud
- Community cloud
Public Cloud
The “public” in public cloud means anyone who wants to use that service can get it. Public clouds are easy to access and usually have a “general” purpose many can benefit from.
It’s important to mention that with public clouds, the infrastructure is owned by the service provider, not by consumers. This means you can’t “purchase” a public cloud service forever.
Advantages of Public Cloud
- Cost-effectiveness – Some public clouds are free. Those that aren’t free typically have a reasonable fee.
- Scalability – Public clouds are accommodating to changing demands. Depending on the cloud’s nature, you can easily add or remove users, upgrade plans, or manipulate storage space.
- Flexibility – Public clouds are suitable for many things, from storing a few files temporarily to backing up an entire company’s records.
Disadvantages of Public Cloud
- Security concerns – Since anyone can access public clouds, you can’t be sure your data is 100% safe.
- Limited customization – While public clouds offer many options, they don’t really allow you to tailor the environment to match your preferences. They’re made to suit broad masses, not particular individuals.
Examples of Public Cloud Providers
- Amazon Web Services (AWS)
- Microsoft Azure
- Google Cloud Platform
Private Cloud
If you’re looking for the complete opposite of public clouds, you’ve found it. Private clouds aren’t designed to fit general criteria. Instead, they’re made to please a single user. Some of the perks private clouds offer are exclusive access, exceptional security, and unmatched customization.
A private cloud is like a single-tenant building. The tenant owns the building and has complete control to do whatever they want. They can tear down walls, drill holes to hang pictures, paint the rooms, install tiles, and get new furniture. When needs change, the tenant can redecorate, no questions asked.
Advantages of Private Cloud
- Enhanced security – The company’s IT department oversees private clouds. They’re usually protected by powerful firewalls and protocols that minimize the risk of information breaches.
- Greater control and customization – Since private clouds are one-on-one environments, you can match them to your needs.
- Improved performance – Private clouds can have functions that suit your organization to the letter, resulting in high performance.
Disadvantages of Private Cloud
- Higher costs – The exclusive access and customization come at a cost (literally).
- Limited scalability – You can scale private clouds, but only up to a certain point.
Examples of Private Cloud Providers
- VMware
- IBM Cloud
- Dell EMC
Hybrid Cloud
Public and private clouds have a few important drawbacks that may be deal-breakers for some people. You may want to use public clouds but aren’t ready to compromise on security. On the other hand, you may want the perks that come with private clouds but aren’t happy with limited scalability.
That’s when hybrid clouds come into play because they let you get the best of both worlds. They’re the perfect mix of public and private clouds and offer their best features. You can get the affordability of public clouds and the security of private clouds.
Advantages of Hybrid Cloud
- Flexibility and scalability – Hybrid clouds are personalized environments, meaning you can adjust them to meet your specific needs. If your needs change, hybrid clouds can keep up.
- Security and compliance – You don’t have to worry about data breaches or intruders with hybrid clouds. They use state-of-the-art measures to guarantee safety, privacy, and security.
- Cost optimization – Hybrid clouds are much more affordable than private ones. You’ll need to pay extra only if you want special features.
Disadvantages of Hybrid Cloud
- Complexity in management – Since they combine public and private clouds, hybrid clouds are complex systems that aren’t really easy to manage.
- Potential security risks – Hybrid clouds aren’t as secure as private clouds.
Examples of Hybrid Cloud Providers
- Microsoft Azure Stack
- AWS Outputs
- Google Anthos
Community Cloud
Community clouds are shared by more than one organization. The organizations themselves manage them or a third party. In terms of security, community clouds fall somewhere between private and public clouds. The same goes for their price.
Advantages of Community Cloud
- Shared resources and costs – A community cloud is like a common virtual space for several organizations. By sharing the space, the organizations also share costs and resources.
- Enhanced security and compliance – Community clouds are more secure than public clouds.
- Collaboration opportunities – Cloud sharing often encourages organizations to collaborate on different projects.
Disadvantages of Community Cloud
- Limited scalability – Community clouds are scalable, but only to a certain point.
- Dependency on other organizations – As much as sharing a cloud with another organization(s) sounds exciting (and cost-effective), it means you’ll depend on them.
Examples of Community Cloud Providers
- Salesforce Community Cloud
- Rackspace
- IBM Cloud for Government
Cloud Computing Service Models
There are three types of cloud computing service models:
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
IaaS
IaaS is a type of pay-as-you-go, third-party service. In this case, the provider gives you an opportunity to enjoy infrastructure services for your networking equipment, databases, devices, etc. You can get services like virtualization and storage and build a strong IT platform with exceptional security.
IaaS models give you the flexibility to create an environment that suits your organization. Plus, they allow remote access and cost-effectiveness.
What about their drawbacks? The biggest issue could be security, especially in multi-tenant ecosystems. You can mitigate security risks by opting for a reputable provider like AWS or Microsoft (Azure).
PaaS
Here, the provider doesn’t deliver the entire infrastructure to a user. Instead, it hosts software and hardware on its own infrastructure, delivering only the “finished product.” The user enjoys this through a platform, which can exist in the form of a solution stack, integrated solution, or an internet-dependent service.
Programmers and developers are among the biggest fans of PaaS. This service model enables them to work on apps and programs without dealing with maintaining complex infrastructures. An important advantage of PaaS is accessibility – users can enjoy it through their web browser.
As far as disadvantages go, the lack of customizability may be a big one. Since you don’t have control over the infrastructure, you can’t really make adjustments to suit your needs. Another potential drawback is that PaaS depends on the provider, so if they’re experiencing problems, you could too.
Some examples of PaaS are Heroku and AWS Elastic Beanstalk.
SaaS
Last but not least is SaaS. Thanks to this computing service model, users can access different software apps using the internet. SaaS is the holy grail for small businesses that don’t have the budget, bandwidth, workforce, or will to install and maintain software. Instead, they leave this work to the providers and enjoy only the “fun” parts.
The biggest advantage of SaaS is that it allows easy access to apps from anywhere. You’ll have no trouble using SaaS as long as you have internet. Plus, it saves a lot of money and time.
Nothing’s perfect, and SaaS is no exception. If you want to use SaaS without interruptions, you need to have a stable internet connection. Plus, with SaaS, you don’t have as much control over the software’s performance and security. Therefore, you need to decide on your priorities. SaaS may not be the best option if you want a highly-customizable environment with exceptional security.
The most popular examples of SaaS are Dropbox, Google Apps, and Salesforce.
Sit on the Right Cloud
Are high security and appealing customization features your priority? Or are you on the hunt for a cost-effective solution? Your answers can indicate which cloud deployment model you should choose.
It’s important to understand that models are not divided into “good” and “bad.” Each has unique characteristics that can be beneficial and detrimental at the same time. If you don’t know how to employ a particular model, you won’t be able to reap its benefits.
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Source:
- IE University – Insights, Published on October 15th, 2024.
By Francesco Derchi
Purpose is a strategic tool for driving innovation, competitive advantage, and addressing AI challenges, writes Francesco Derchi.
Since the early 2000s, technology has dominated discussions among scholars and professionals about global development and economic trends, with the first wave of research regarding the internet’s impact on firms and society focusing on the enabling potential of technologies. The concept of “digital revolution,” as popularized by Nicholas Negroponte, became the new paradigm for broader considerations about the development of the firm’s macro environment, and how businesses could leverage it as an asset for creating competitive advantage. The following wave focused on the convergence of different technologies, such as manufacturing, and included the dynamics of coexistence between humans and machines. From the management side, the major challenges are related to defining effective digital transformation practices that could help to migrate organizations and exploit this new paradigm.
The current technological focus builds on these previous trends, particularly on artificial intelligence and more recently on the emergence of generative AI. The Age of AI is characterized by technology’s power to reshape business and society on a variety of levels. While AI’s pervasive impact is not new for firms, the mainstream adoption of ChatGPT for business purposes and the response to this ready adoption from big tech players like Microsoft, Google, and more recently Apple, shows how AI is reshaping and influencing companies’ strategic priorities.
From a research perspective, AI’s societal impact is inspiring new studies in the field of ethics. Luciano Floridi, now of Yale University, has identified several challenges for AI, characterizing them by global magnitudes like its environmental impact and has identified several challenges for AI security, including intellectual property, privacy, transparency, and accountability. In his work, Floridi underlines the importance of philosophy in defining problems and designing solutions – but it is equally important to consider how these challenges can be addressed at the firm level. What are the tools for managers?
Part of the answer may lie in the increasing and recent focus of management studies around “corporate purpose” and “brand purpose.” This trend represents an important attempt to deepen our understanding of “why to act” (purpose framing) and “how to act” (purpose formalizing and internalizing), while technology management studies address the “what to act” (purpose impacting) question. Furthermore, studies show that corporate purpose is critical for both digital native firms as well as traditional companies undergoing a digital transformation, serving as an important growth engine through purpose-driven innovation. It is therefore fair to ask: can purpose help in addressing any of the AI challenges previously mentioned?
Purpose concepts are not exclusively “cause-related” like CSR and environmental impact. Other types have emerged, such as “competence” (the function of the product) and “culture” (the intent that drives the business). This broadens the consideration of impact types that can help address specific challenges in the age of AI.
Purpose-driven organizations are not new. Take Tesla’s direction “to accelerate the world’s transition to sustainable energy” – it explicitly addresses environmental challenges while defining a business direction that requires constant innovation and leverages multiple converging technologies. The key is to have the purpose formalized and internalized within the company as a concrete drive for growth.
Due to its characteristics, the MTP plays a key role in digital transformation. This necessarily ambitious and long-term vision or goal – the Massive Transformative Purpose – requires firms, particularly those focused on exponential growth, to address emerging accelerating technologies with a purpose-first transformation logic. P&G’s Global Business Services division was able to improve market leadership and gain a competitive advantage over various start-ups and potential disruptors through its “Free up the employee, for free” MTP. This served as a north star for every employee, encouraging them to contribute ideas and best practices to overcome bulky processes and limitations.
My research on MTPs in AI-era firms explores their role in driving innovation to address specific challenges. Results show that the MTP impacts the organization across four dimensions, requiring commitment and synergy from management. Let’s consider these four dimensions by looking at Airbnb:
- Internal Impact: The MTP acts as the organization’s genetic code and guiding philosophy. It is key for leveraging employee motivation, with a strong relationship between purpose, organizational culture, and firm values. Airbnb’s culture of belonging highlights this, with its various purpose-shaping practices, starting with culture-fit interviews delivered during the recruitment process.
- Brand and Market Influence: The MTP contributes directly to building a strong brand and influencing the market. It allows firms to extend beyond functional and symbolic benefits to make the impact of the company on society visible. This involves addressing market demand coherently and consistently. Airbnb’s “Bélo” symbol visually represents this concept of belonging while their MTP features in campaigns like “Wall and Chain: A Story of Breaking Down Walls.”
- Competitive Advantage and Growth: The MTP drives innovation and can lead to superior stock market performance. In digital firms, it’s key in the creation of ecosystems that aggregate leveraged assets and third parties for value creation. The company’s “belong anywhere transformation journey” is a strategic initiative that formalized and interiorized the MTP through various touchpoints for all the different ecosystem members. As Leigh Gallagher details in her 2016 Fortune feature about the company, “When travellers leave their homes, they feel alone. They reach their Airbnb, and they feel accepted and taken care of by their host. They then feel safe to be the same kind of person they are when they’re at home.”
- Core Organization Identity: The MTP is considered part of the core dimension of the organization. More than a goal or business strategy, it is a strategic issue that generates a sense of direction and purpose that affects every part of the organization: internal, external, personality, and expression. This dimension also involves the role of the founder(s) and their personality in shaping the business. At Airbnb, the MTP is often used as a shortcut to explain the firm’s mission and vision. The founders’ approach is pragmatic, and instead of debating differences, time should be spent on execution. At the same time, the personalities of the three founders, Chesky, Gebbia, and Blecharcyzk, are the identity of the firm. They were the first hosts for the platform. Their credibility is key for making Airbnb a trustworthy and coherent proposal in a crowded market.
Executives and leaders of business in the current AI era should embrace three key principles. Be true: Purpose is an essential strategic tool that enables firms to identify and connect with their original selves, decoding their reason for being and embedding it into their identity. Be ambitious: The MTP allows for global impact, confronting major challenges by synthesizing business values and guiding innovation paths to address AI-related issues. Be generous: Purpose allows firms to explicitly address environmental and social issues, taking action on values-based challenges such as transparency, respect for intellectual property, and accountability. By following these principles, organizations and their leaders can maintain their direction and continue to advance in the AI era.
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Source:
- Authority Magazine Medium, Published on September 15th, 2024.
Gaining hands-on experience through projects, internships, and collaborations is vital for understanding how to apply AI in various industries and domains. Use Kaggle or get a free cloud account and start experimenting. You will have projects to discuss at your next interviews.
By David Leichner, CMO at Cybellum
14 min read
Artificial Intelligence is now the leading edge of technology, driving unprecedented advancements across sectors. From healthcare to finance, education to environment, the AI industry is witnessing a skyrocketing demand for professionals. However, the path to creating a successful career in AI is multifaceted and constantly evolving. What does it take and what does one need in order to create a highly successful career in AI?
In this interview series, we are talking to successful AI professionals, AI founders, AI CEOs, educators in the field, AI researchers, HR managers in tech companies, and anyone who holds authority in the realm of Artificial Intelligence to inspire and guide those who are eager to embark on this exciting career path.
As part of this series, we had the pleasure of interviewing Zorina Alliata.
Zorina Alliata is an expert in AI, with over 20 years of experience in tech, and over 10 years in AI itself. As an educator, Zorina Alliata is passionate about learning, access to education and about creating the career you want. She implores us to learn more about ethics in AI, and not to fear AI, but to embrace it.
Thank you so much for joining us in this interview series! Before we dive in, our readers would like to learn a bit about your origin story. Can you share with us a bit about your childhood and how you grew up?
I was born in Romania, and grew up during communism, a very dark period in our history. I was a curious child and my parents, both teachers, encouraged me to learn new things all the time. Unfortunately, in communism, there was not a lot to do for a kid who wanted to learn: there was no TV, very few books and only ones that were approved by the state, and generally very few activities outside of school. Being an “intellectual” was a bad thing in the eyes of the government. They preferred people who did not read or think too much. I found great relief in writing, I have been writing stories and poetry since I was about ten years old. I was published with my first poem at 16 years old, in a national literature magazine.
Can you share with us the ‘backstory’ of how you decided to pursue a career path in AI?
I studied Computer Science at university. By then, communism had fallen and we actually had received brand new PCs at the university, and learned several programming languages. The last year, the fifth year of study, was equivalent with a Master’s degree, and was spent preparing your thesis. That’s when I learned about neural networks. We had a tiny, 5-node neural network and we spent the year trying to teach it to recognize the written letter “A”.
We had only a few computers in the lab running Windows NT, so really the technology was not there for such an ambitious project. We did not achieve a lot that year, but I was fascinated by the idea of a neural network learning by itself, without any programming. When I graduated, there were no jobs in AI at all, it was what we now call “the AI winter”. So I went and worked as a programmer, then moved into management and project management. You can imagine my happiness when, about ten years ago, AI came back to life in the form of Machine Learning (ML).
I immediately went and took every class possible to learn about it. I spent that Christmas holiday coding. The paradigm had changed from when I was in college, when we were trying to replicate the entire human brain. ML was focused on solving one specific problem, optimizing one specific output, and that’s where businesses everywhere saw a benefit. I then joined a Data Science team at GEICO, moved to Capital One as a Delivery lead for their Center for Machine Learning, and then went to Amazon in their AI/ML team.
Can you tell our readers about the most interesting projects you are working on now?
While I can’t discuss work projects due to confidentiality, there are some things I can mention! In the last five years, I worked with global companies to establish an AI strategy and to introduce AI and ML in their organizations. Some of my customers included large farming associations, who used ML to predict when to plant their crops for optimal results; water management companies who used ML for predictive maintenance to maintain their underground pipes; construction companies that used AI for visual inspections of their buildings, and to identify any possible defects and hospitals who used Digital Twins technology to improve patient outcomes and health. It is amazing to see how much AI and ML are already part of our everyday lives, and to recognize some of it in the mundane around us.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful for who helped get you to where you are? Can you share a story about that?
When you are young, there are so many people who step up and help you along the way. I have had great luck with several professors who have encouraged me in school, and an uncle who worked in computers who would take me to his office and let me play around with his machines. I now try to give back and mentor several young people, especially women who are trying to get into the field. I volunteer with AnitaB and Zonta, as well as taking on mentees where I work.
As with any career path, the AI industry comes with its own set of challenges. Could you elaborate on some of the significant challenges you faced in your AI career and how you managed to overcome them?
I think one major challenge in AI is the speed of change. I remember after spending my Christmas holiday learning and coding in R, when I joined the Data Science team at GEICO, I realized the world had moved on and everyone was now coding in Python. So, I had to learn Python very fast, in order to understand what was going on.
It’s the same with research — I try to work on one subject, and four new papers are published every week that move the goal posts. It is very challenging to keep up, but you just have to adapt to continuously learn and let go of what becomes obsolete.
Ok, let’s now move to the main part of our interview about AI. What are the 3 things that most excite you about the AI industry now? Why?
1. Creativity
Generative AI brought us the ability to create amazing images based on simple text descriptions. Entire videos are now possible, and soon, maybe entire movies. I have been working in AI for several years and I never thought creative jobs will be the first to be achieved by AI. I am amazed at the capacity of an algorithms to create images, and to observe the artificial creativity we now see for the first time.
2. Abstraction
I think with the success and immediate mainstream adoption of Generative AI, we saw the great appetite out there for automation and abstraction. No one wants to do boring work and summarizing documents; no one wants to read long websites, they just want the gist of it. If I drive a car, I don’t need to know how the engine works and every equation that the engineers used to build it — I just want my car to drive. The same level of abstraction is now expected in AI. There is a lot of opportunity here in creating these abstractions for the future.
3. Opportunity
I like that we are in the beginning of AI, so there is a lot of opportunity to jump in. Most people who are passionate about it can learn all about AI fully online, in places like Open Institute of Technology. Or they can get experience working on small projects, and then they can apply for jobs. It is great because it gives people access to good jobs and stability in the future.
What are the 3 things that concern you about the AI industry? Why? What should be done to address and alleviate those concerns?
1. Fairness
The large companies that build LLMs spend a lot of energy and money into making them fair. But it is not easy. Us, as humans, are often not fair ourselves. We even have problems agreeing what fairness even means. So, how can we teach the machines to be fair? I think the responsibility stays with us. We can’t simply say “AI did this bad thing.”
2. Regulation
There are some regulations popping up but most are not coordinated or discussed widely. There is controversy, such as regarding the new California bill SB1047, where scientists take different sides of the debate. We need to find better ways to regulate the use and creation of AI, working together as a society, not just in small groups of politicians.
3. Awareness
I wish everyone understood the basics of AI. There is denial, fear, hatred that is created by doomsday misinformation. I wish AI was taught from a young age, through appropriate means, so everyone gets the fundamental principles and understands how to use this great tool in their lives.
For a young person who would like to eventually make a career in AI, which skills and subjects do they need to learn?
I think maybe the right question is: what are you passionate about? Do that, and see how you can use AI to make your job better and more exciting! I think AI will work alongside people in most jobs, as it develops and matures.
But for those who are looking to work in AI, they can choose from a variety of roles as well. We have technical roles like data scientist or machine learning engineer, which require very specialized knowledge and degrees. They learn computing, software engineering, programming, data analysis, data engineering. There are also business roles, for people who understand the technology well but are not writing code. Instead, they define strategies, design solutions for companies, or write implementation plans for AI products and services. There is also a robust AI research domain, where lots of scientists are measuring and analyzing new technology developments.
With Generative AI, new roles appeared, such as Prompt Engineer. We can now talk with the machines in natural language, so speaking good English is all that’s required to find the right conversation.
With these many possible roles, I think if you work in AI, some basic subjects where you can start are:
- Analytics — understand data and how it is stored and governed, and how we get insights from it.
- Logic — understand both mathematical and philosophical logic.
- Fundamentals of AI — read about the history and philosophy of AI, models of thinking, and major developments.
As you know, there are not that many women in the AI industry. Can you advise what is needed to engage more women in the AI industry?
Engaging more women in the AI industry is absolutely crucial if you want to build any successful AI products. In my twenty years career, I have seen changes in the tech industry to address this gender discrepancy. For example, we do well in school with STEM programs and similar efforts that encourage girls to code. We also created mentorship organizations such as AnitaB.org who allow women to connect and collaborate. One place where I think we still lag behind is in the workplace. When I came to the US in my twenties, I was the only woman programmer in my team. Now, I see more women at work, but still not enough. We say we create inclusive work environments, but we still have a long way to go to encourage more women to stay in tech. Policies that support flexible hours and parental leave are necessary, and other adjustments that account for the different lives that women have compared to men. Bias training and challenging stereotypes are also necessary, and many times these are implemented shoddily in organizations.
Ethical AI development is a pressing concern in the industry. How do you approach the ethical implications of AI, and what steps do you believe individuals and organizations should take to ensure responsible and fair AI practices?
Machine Learning and AI learn from data. Unfortunately, lot of our historical data shows strong biases. For example, for a long time, it was perfectly legal to only offer mortgages to white people. The data shows that. If we use this data to train a new model to enhance the mortgage application process, then the model will learn that mortgages should only be offered to white men. That is a bias that we had in the past, but we do not want to learn and amplify in the future.
Generative AI has introduced a new set of fresh risks, the most famous being the “hallucinations.” Generative AI will create new content based on chunks of text it finds in its training data, without an understanding of what the content means. It could repeat something it learned from one Reddit user ten years ago, that could be factually incorrect. Is that piece of information unbiased and fair?
There are many ways we fight for fairness in AI. There are technical tools we can use to offer interpretability and explainability of the actual models used. There are business constraints we can create, such as guardrails or knowledge bases, where we can lead the AI towards ethical answers. We also advise anyone who build AI to use a diverse team of builders. If you look around the table and you see the same type of guys who went to the schools, you will get exactly one original idea from them. If you add different genders, different ages, different tenures, different backgrounds, then you will get ten innovative ideas for your product, and you will have addressed biases you’ve never even thought of.
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