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What Are Managed Services? | How Do Managed Services Drive Business Growth?

  • By Gcore
  • July 6, 2023
  • 14 min read
What Are Managed Services? | How Do Managed Services Drive Business Growth?

Managed services (MS) refers to the outsourcing of tasks remotely to a third-party company known as managed service providers (MSPs.) For instance, when an e-commerce business experiences growth, its IT infrastructure can become more complex to meet the demands, requiring additional expertise and workforce. By having managed services, businesses can leverage this solution to effectively handle their daily operations, saving valuable resources that can be allocated towards expanding the company. By the end of this article, you’ll understand how managed services work and what to consider when selecting an MSP to take your business to greater heights.

What Are Managed Services?

Managed services means that an external provider takes charge of providing and managing specific IT services for clients. These managed services are typically governed by a service-level agreement (SLA,) which outlines the engagement’s scope, performance expectations, and terms.

The concept of managed services emerged due to the growing dependence of businesses on IT infrastructure in the late 1990s. As a result, there was a need for specialized knowledge in managing and supporting these IT systems. Managed service providers (MSPs) filled that gap and continue to do so.

Why Use Managed Services?

As a business owner, working with a managed service model allows you to delegate tasks and responsibilities to experienced professionals. By hiring an MSP, you can benefit from their specialized skills and resources, giving you peace of mind and allowing you to focus on other important aspects of your business, such as innovation. We will discuss the benefits of managed services in depth later in this article.

How to Set Up Managed Services

When providing managed services, the following is a typical set-up process.

  1. Assessment. The MSP conducts an initial assessment of the client’s IT environment, infrastructure, and requirements. This helps the MSP to understand the current state of the systems and identify areas that need improvement.
  2. Planning. Based on the assessment, the MSP develops a comprehensive plan tailored to the client’s specific needs. This plan outlines the services to be provided, the scope of work, and the associated costs.
  3. Implementation. Once the plan is approved, the MSP begins implementing the necessary changes and deploying the required technologies. This may involve setting up hardware and software, configuring networks, and establishing security measures.
  4. Monitoring and maintenance. After the implementation, the MSP continuously monitors the client’s systems, applications, and networks. Regular maintenance tasks, such as updates, backups, and patches, are performed to ensure optimal performance and security.
  5. Support and help desk. MSPs provide ongoing technical support to clients, often through a help desk or service desk. They handle user inquiries, troubleshoot problems, and resolve issues remotely or on site, depending on the severity.
  6. Reporting and analysis. MSPs give clients reports on IT system performance, including uptime, response times, and security incidents. This helps analyze trends, identify areas for improvement, and make strategic recommendations.

The delivery of managed services can happen either remotely, on site, or using a combination of the two, depending on the nature of the services and the client’s requirements. Many routine maintenance and support tasks can be performed remotely, allowing MSPs to efficiently manage multiple clients’ systems from their own facilities. However, certain situations may require on-site visits, such as hardware installations or troubleshooting complex issues that cannot be resolved remotely.

Types of Managed Services

There is no “one size fits all” solution in managed services. It means that there are different types of services available, and they can be customized to meet various needs related to IT infrastructure and operations. Some MSPs offer multiple of these types of services. Here are some common types of managed services available:

  • Network management. This involves monitoring and taking care of the client’s network infrastructure, which includes routers, switches, firewalls, and wireless access points. The end result is a stable, secure, and high-performing network.
  • Server and infrastructure management. Sever and infrastructure management refers to maintenance and assistance required to manage physical and virtual servers, along with essential infrastructure elements like storage, backups, and disaster recovery solutions.
  • Security management. Security management includes tasks such as identifying potential threats, managing vulnerabilities, detecting and preventing intrusions, responding to security incidents, and the overall management of security risks. This helps protect the client’s systems and data from potential dangers and unauthorized access.
  • Cloud management. This includes managing and optimizing cloud infrastructure, services, and applications, ensuring scalability, cost efficiency, and reliability in cloud environments such as public, private, or hybrid clouds.
  • Application management. Application management involves taking care of and assisting with particular applications or software used by the client, which includes setting them up, adjusting settings, keeping them up to date, and fixing any issues to make sure that all applications are available and work well.
  • Desktop and end-user support. This type of managed service provides technical support to end users, including help desk services, device management, software installation and updates, and user training and assistance.
  • IT consulting and strategy. Managed service providers may offer IT consulting services to assist clients in developing technology strategies, aligning IT with business goals, and making informed decisions about IT infrastructure, applications, and security.

Here are a few examples of different industries that benefit from using managed services, based on their specific needs and requirements:

Managed serviceIndustries that may benefit
Network managementTelecommunications, financial services, retail
Server and infrastructure managementHealthcare, education, manufacturing
Security managementBanking and finance, government, information technology
Cloud managementE-commerce, software development, media and entertainment
Application managementHealthcare, hospitality, logistics
Desktop and end-user supportEducation, professional services, non-profit organizations
IT consulting and strategyReal estate, construction, legal services

A growing variety of services are being offered by MSPs, particularly when it comes to software-based solutions like business applications. One example is the platform-as-a-service (PaaS) model, which is a type of cloud computing that gives developers a platform and environment to create apps. For instance, think of apps like Airbnb or Pinterest. These apps rely on the PaaS model, which is important for making these technologies accessible to more people.

Here are the patterns and growth rates of the different types of managed services that MSPs sell to the market in 2022:

CompTIA’s trends of managed services

As depicted in the graph, growing businesses need to depend on various managed services to achieve success amidst market challenges and competition. In addition, cybersecurity has gained in importance, prompting companies to allocate additional resources to safeguard their operations.

What Are the Benefits of Managed Services in Business?

Let’s now explore the ways in which managed services benefit businesses. The major benefit of MSPs is that they take care of your specialized technology applications’ day-to-day operations, allowing you and your team to concentrate on boosting revenue or sales. Let’s review some of the less obvious benefits of managed services.

  • Saves you money. Managed services help businesses reduce costs by eliminating the need to invest in expensive IT infrastructure, equipment, and personnel. Instead of hiring and training a large number of new employees, businesses can rely on the expertise, efficiency, and resources of the managed service provider (MSP) at a predictable, regular cost.
  • Increased productivity. By relying on an MSP to handle IT operations, rather than allocating resources to hire experts, businesses can dedicate more attention to areas of improvement, resulting in enhanced efficiency and productivity. The MSP’s expertise and experience in the field guarantees optimized IT operations and the prompt resolution of any issues that may arise.
  • Proactive support and monitoring. Managed services provide proactive monitoring of IT systems, identifying potential issues before they become major problems. This proactive approach minimizes downtime, enhances system reliability, and improves overall business performance.
  • Enhanced security. MSPs provide strong security measures to safeguard businesses against cyber threats. These measures include monitoring for potential threats, managing vulnerabilities, and responding to incidents. Regular updates, patches, and data backups are performed to ensure the safety and reliability of business data.
  • Scalability and flexibility. Managed services provide your business with the flexibility to scale your IT infrastructure and services based on changing business needs. Whether you are expanding or downsizing your operations, MSPs can quickly adjust resources to align with your requirements.
  • Improved focus on core business. By partnering with MSPs, your business can concentrate on its core competencies and strategic goals while having access to skilled experts. MSPs also handle data compliance and auditing, freeing up your valuable time to focus on driving innovation and customer satisfaction. This ultimately leads to business growth without worrying about the complexities of compliance.

Evidently, managed services offer businesses many benefits. Let’s now discuss specific use cases to determine if an MSP is something that you need for your business.

Use Cases of Managed Services

Managed services have a broad range of applications across diverse businesses, industries, and sectors. These services can be customized to meet the unique needs and requirements of your specific business, ensuring that the solution provided is tailored to enhance efficiency, security, and productivity. Let’s look at some common examples of use cases of managed services.

#1 Small and Medium-Sized Businesses (SMBs)

Small and medium-sized businesses (SMBs) can greatly benefit from managed services tailored to their specific needs. One key area where managed services can be advantageous is IT infrastructure management and support. SMBs often lack the in-house resources and expertise to manage their IT systems optimally, which can result in downtime and inefficiencies. By outsourcing IT infrastructure management to a managed services provider, SMBs can ensure reliable and efficient technology operations. The provider takes care of tasks such as server management, network monitoring, and software updates, allowing the SMB to focus on its core business activities.

Here are some examples of SMBs that can benefit from managed services:

  • Accounting firm. An MSP can handle the management of their servers, network, and software updates, ensuring that everything runs smoothly while also keeping their data secure and compliant with regulations.
  • Marketing agency. An MSP can manage a marketing agency’s cloud servers, data storage, and software deployments, allowing the agency to focus on their marketing campaigns and client services.
  • Law firm. Some beneficial managed services include threat monitoring, vulnerability management, and incident response services to protect the law firm’s sensitive client data and ensure compliance with data privacy regulations.
  • Healthcare clinic. An MSP can provide remote technical assistance to clinic staff, troubleshoot software and hardware issues, and ensure the smooth functioning of their healthcare information systems.
  • Retail store. Monitoring the network infrastructure, setting up firewalls and intrusion detection systems, and performing regular security audits to protect customer data and prevent cyber threats are some helpful managed services for retail stores.

The examples mentioned are just a few instances of the many small and medium-sized businesses (SMBs) that can benefit from using managed services. Services like IT infrastructure management, data backup and recovery, and help desk support are important for SMBs to operate more smoothly in competitive markets. Now, let’s explore another industry that can also benefit from these services: the healthcare industry.

#2 Healthcare Industry

The healthcare industry can greatly benefit from managed services that cater to its unique needs. These services provide crucial support in managing electronic health records, ensuring data security and compliance and maintaining the performance of medical devices and systems. Here are some key use cases of managed services in the healthcare industry:

  • Electronic health record (EHR) system management. An MSP provides secure storage and accessibility of patient information and efficient retrieval and updating of medical records.
  • Security and compliance services. An MSP ensures the safety of patient data by protecting it from cyber threats. Additionally, they make sure that the healthcare organization follows the necessary regulations, including ensuring patient privacy and confidentiality so that sensitive information remains protected.
  • Remote monitoring and maintenance of medical devices and systems. Medical devices are continuously monitored to make sure they are performing at their best. Regular maintenance is performed promptly to avoid any disruptions. This ensures that critical healthcare systems are always available and reliable for use.

There has been an increase of 26.6% in downloads of health applications and prescription apps in the United States in the first half of 2021. This surge in downloads is attributed to users seeking convenient ways to order repeat prescriptions through their mobile devices in the wake of the COVID-19 pandemic. When it comes to health apps, managed services play a vital role in providing advantages such as patient data protection, regulatory compliance, and improved healthcare system performance.

#3 Financial Services

In the financial services industry, it is common for companies to face numerous cybersecurity threats. A security breach can result in significant losses not only for the company but also for the affected clients, as it can lead to financial theft and identity fraud. Making sure that the most up-to-date and powerful IT security measures are in place is a top priority.

Managed services come into picture to provide strong IT security to protect financial assets and personal information. Here are some key benefits of managed services in the financial services sector:

  • Network and data security services. Managed services provide robust security measures to safeguard sensitive financial information and prevent unauthorized access. This includes implementing firewalls, intrusion detection systems, and encryption techniques to protect data from cyber threats.
  • Compliance management services. Financial institutions need to comply with industry regulations, such as PCI DSS (Payment Card Industry Data Security Standard) and GDPR (General Data Protection Regulation.) Managed services offer compliance management solutions to ensure adherence to these regulations, helping businesses avoid penalties and maintain trust with customers.
  • Disaster recovery and business continuity services. Downtime can be costly for financial institutions. Managed services provide disaster recovery and business continuity solutions, including regular data backups and the creation of backup systems, to minimize disruptions and ensure uninterrupted operations even in the event of unexpected incidents.

Online and mobile banking usage is projected to continue to rise. For example, 22 million individuals in Latin America will adopt online banking in 2024 alone, leading to a total user base of 196 million in the region—almost double that of 2020.

By leveraging managed services, financial service providers can focus on their core functions while relying on experts to manage their network security, compliance, and business continuity. This allows them to operate more efficiently, mitigate risks, and maintain the trust of their clients.

#4 Manufacturing Sector

In the manufacturing sector, managed services play a crucial role in improving operations and maximizing production. Companies in this industry often rely on specialized technology systems and processes to meet production demands and maintain competitiveness. Let’s explore some of the specific benefits and use cases of managed services in the manufacturing sector:

  • IT infrastructure management. Managed services providers offer expertise in managing and optimizing the IT infrastructure of manufacturing companies. This includes activities such as server management, network monitoring, and software updates, which help to enhance efficiency and minimize any potential downtime that could disrupt operations.
  • Monitoring of industrial automation and control systems. As automation becomes increasingly prevalent in manufacturing, the need to monitor and maintain these systems becomes crucial. Managed services providers offer continuous monitoring to identify any issues or anomalies in the automation and control systems. By promptly addressing these issues, they ensure smooth, safe, and uninterrupted operations.
  • Data analytics and predictive maintenance. Managed services providers in the manufacturing sector often offer data analytics and predictive maintenance solutions. By analyzing data collected from various equipment and systems, manufacturers can gain valuable insights into equipment performance, identify maintenance needs in advance, and optimize maintenance schedules. This proactive approach helps to reduce unplanned downtime, extend equipment lifespan, and reduce maintenance costs.
  • Smart manufacturing. The global smart manufacturing market was valued at 97.6 billion USD in 2022 and is projected to reach 228.3 billion USD by 2027, growing at a compound annual growth rate of 18.5%. Smart manufacturing utilizes advanced technologies to improve traditional manufacturing processes. By adopting managed services, manufacturers can capitalize on this expanding market, increase productivity, minimize downtime, and achieve cost efficiency.

Managed services providers offer expertise and support, allowing manufacturers to focus on their core strengths while relying on secure and dependable IT solutions that contribute to efficiency and competitiveness.

#5 Retail Industry

In the retail industry, managed services offer essential support to streamline operations and enhance customer satisfaction. Whether focused on maintaining a reliable and secure e-commerce platform, optimizing inventory management and supply chain, or providing efficient customer support, managed services play a crucial role in helping retailers thrive in today’s competitive market. Let’s explore some of the specific benefits and use cases of managed services in the retail industry:

  • E-commerce platform management and support services. Ensuring a reliable and secure online presence is vital for retailers to attract and retain customers. Managed services can assist in managing and maintaining e-commerce platforms, enabling smooth transactions and protecting sensitive customer data.
  • Inventory management and supply chain services. Effective inventory management helps retailers to optimize stock levels, avoid out-of-stock or overstock situations, and minimize costs. Managed services can provide valuable insights and support in streamlining inventory management processes.
  • Customer support and help desk services. Providing excellent customer support is essential for building strong customer relationships. Managed services can offer efficient customer support and help desk services, addressing customer inquiries and resolving technical issues promptly.

Global retail e-commerce sales amounted to approximately 5.2 trillion USD in 2021, with expectations of significant growth in the coming years, reaching over 8 trillion USD by 2026. As retailers rely more on online platforms to connect with customers, managed services become crucial in maintaining a reliable and secure online presence. These services assist retailers in managing their e-commerce platforms, ensuring seamless transactions and safeguarding customer data.

What Is a Managed Service Provider (MSP)?

A managed service provider (MSP) is a company that provides managed services to clients, overseeing and remotely managing the IT infrastructure or end-user systems of an organization. MSPs have expertise in offering IT solutions to businesses across different sizes and industries. They act as a trusted partner and take responsibility for managing and supporting their client’s IT infrastructure, systems, and operations.

What Factors Should You Consider When Choosing an MSP?

Choosing the right managed service provider (MSP) is crucial for the success and efficiency of your business operations. With so many options available, it’s important to consider certain factors that will ensure you make an informed decision. In this section, we will explore what to keep in mind when choosing an MSP so you can confidently select an MSP that aligns with your business needs and goals. Here is a checklist to review when choosing an MSP:

  1. Expertise and specialization. Look for an MSP with experience and expertise in your industry or with your specific technology requirements.
  2. Service level agreements (SLAs). Evaluate the SLAs offered by the MSP to ensure that they meet your business requirements, including response times and issue resolution procedures.
  3. Scalability and flexibility. Consider whether the MSP can scale their services to accommodate your business growth and adapt to changing needs.
  4. Security measures. Assess the MSP’s security protocols, including data protection, vulnerability management, and incident response.
  5. Reputation and references. Research the MSP’s reputation in the industry and seek references or testimonials from their existing clients.
  6. Cost and value. Compare the pricing models of different MSPs and evaluate the value they provide in terms of services and support.
  7. Proactive support and monitoring. Determine how the MSP proactively monitors your systems and provides ongoing support to minimize downtime.
  8. Communication and reporting. Ensure that clear and transparent communication channels are established. Check that regular reports are provided to track the performance and progress of the MSP’s services.

By considering these important factors and conducting thorough research, you can make a well-informed decision when choosing a managed service provider (MSP) that will effectively meet your business needs and support your growth. When consulting with MSPs directly, ask plenty of questions and ensure that all details are clearly understood and agreed upon by both parties. Investing in technology services can be daunting and sometimes confusing, but as a business owner, it’s crucial to prioritize obtaining the best solutions for your business while also staying within your budget. In the next section, we will explore how Gcore’s managed services can assist you in growing your business.

How Do Gcore Managed Services Help Businesses to Grow?

At Gcore, we provide a wide range of managed services to cater to the unique requirements of businesses in different sectors. In this section, we will discuss our platform-as-a-service (PaaS) offering, which is a type of managed service specifically designed to offer developers a platform for creating and launching applications. With the use of PaaS, your business can depend on the service provider to handle the management and maintenance of the platform, allowing your developers to focus on creating and enhancing applications. Now, let’s explore the key features and benefits of Gcore’s platform-as-a-service (PaaS) offering.

Gcore’s Managed Kubernetes

Managed Kubernetes refers to a service that takes care of the management and operation of Kubernetes clusters. Kubernetes clusters are a collection of servers, also known as nodes, that work together to run applications in a coordinated and efficient manner. Each node in the cluster has its own resources, such as processing power and memory, which can be used to run different parts of your applications. Kubernetes manages these clusters by distributing the workload across the nodes, ensuring that applications run smoothly and can scale easily as needed. It takes care of tasks like deploying, updating, and monitoring applications, making it easier for businesses to manage their software in a reliable and scalable way. 
At Gcore, we help you to deploy, manage and scale Kubernetes clusters with ease. Here are some of our service’s advantages that set us apart:

  • Bare metal support. A bare metal server is a form of cloud service in which the user rents a physical machine from a provider. This machine is dedicated to the user and not shared with any other tenants. Bare metal support means running containers directly on operating systems without any virtualization layer. This approach enhances speed and efficiency, reducing delays and ensuring optimal performance. It also eliminates disruptions caused by neighboring virtual machines (VMs.)
  • No-fee SLA-backed cluster management. In terms of managing production-level clusters, our service provides a guarantee of 99.9% service level agreement (SLA) at no additional cost. This is different from our competitors who either do not offer an SLA or charge a fee of $70 or more per month for it. With our service, you can have peace of mind knowing that your clusters will be managed and maintained with a high level of reliability and uptime, without any additional expenses.
  • Great value Gcore instance prices for worker nodes. Our pricing provides excellent value by offering worker nodes at competitive prices that are equivalent to prices for our virtual instances and bare metal servers. This ensures that you get the same level of affordability and cost-effectiveness for your worker nodes as you would for other types of server instances.
  • DDoS protection. Your projects are protected from DDoS attacks at the network and transport layers by default.
  • GPU worker nodes support. Gcore’s Managed Kubernetes clusters provide support for GPU worker nodes, enabling the execution of GPU-intensive tasks such as machine learning, video processing, and gaming.
  • 24/7 technical support. We offer rapid real-time assistance and quality technical service around the clock.

Learn more about the advantages of Gcore Managed Kubernetes.

Additional Gcore PaaS Offerings

Aside from Gcore Managed Kubernetes, we offer additional PaaS: Managed Logging for collecting and storing logs, function-as-a-service (FaaS) for running code as function without creating and maintaining virtual machines, and Cloud App Marketplace, that gives you access to ready-made systems and applied services. 
Here’s a table showcasing some real-life use cases of Gcore platform-as-a-service (PaaS) in different industries.

IndustryUse Case
E-commerceBuilding and managing online marketplaces
HealthcareDeveloping telemedicine applications
Financial servicesBuilding secure and scalable banking apps
EducationCreating online learning platforms
EntertainmentDeveloping media streaming applications
ManufacturingOptimizing supply chain management systems
RetailBuilding and managing e-commerce platforms
Travel and hospitalityCreating reservation and booking systems

Cost Comparison: On-Premises, IaaS, Gcore Managed Services

Additionally, we would like to present a cost comparison between maintaining your infrastructure on-premises, as infrastructure-as-a-service (IaaS,) and using Gcore’s Managed Services/PaaS.

Gcore Managed Services Value

We offer infrastructure cost savings, which means reducing your capital expenses and saving time on infrastructure design. By choosing Gcore as your managed service provider (MSP,) your business can effortlessly scale and prioritize product development while we streamline your business growth.

Conclusion

Managed services are when a business hires an outside company to manage and support their IT infrastructure. This allows the business to focus on what they do best, leaving the technical workloads to experts. The benefits of managed services include enhanced efficiency and security, reduced downtime, and financial savings. Choosing the right managed service provider is crucial as technology becomes more sophisticated and expensive.

At Gcore, our managed services such as Managed Kubernetes are designed to facilitate business growth. By trusting us with your IT infrastructure, your business can benefit from our expertise and resources so you can concentrate on your business primary goals and achieve sustainable growth.

If you have questions, reach out to our dedicated support team and we’ll be glad to assist.

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A hybrid cloud is a computing environment that combines private clouds, public clouds, and on-premises infrastructure, enabling data and applications to be shared and managed across these environments.The architecture of hybrid cloud systems includes several key components that work together to create a unified computing environment. Private clouds serve as dedicated environments for sensitive applications requiring control and compliance, while public clouds from major providers offer flexibility and cost-effectiveness for less sensitive workloads.Orchestration software manages workload distribution between these environments based on predefined rules or real-time demand.Understanding the distinction between hybrid cloud and multi-cloud approaches is important for organizations planning their cloud strategy. 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This approach gives organizations the flexibility to keep sensitive data on private infrastructure while using public cloud resources for flexible workloads that need to handle varying demand.How does hybrid cloud architecture work?Hybrid cloud architecture works by connecting private clouds, public clouds, and on-premises infrastructure through orchestration software and secure networking to create a unified computing environment. This integrated approach allows organizations to move workloads and data seamlessly between different environments based on specific requirements like security, performance, or cost.The architecture operates through four core components working together. Private clouds handle sensitive data and applications that require strict control and compliance, typically running on dedicated on-premises infrastructure or through private hosting providers.Public clouds from major providers manage flexible workloads and applications that need rapid resource expansion, offering cost-effective computing power for variable demands. Orchestration software acts as the central management layer, automatically distributing workloads between environments based on predefined rules, real-time demand, or performance requirements. Secure networking connections, including VPNs and dedicated links, ensure data integrity and cooperation between all environments.The system enables flexible resource allocation by monitoring application performance and automatically growing resources up or down across environments.When a private cloud reaches capacity, the orchestration layer can burst workloads to public cloud resources while maintaining security protocols. This flexibility allows organizations to keep critical data on-premises while taking advantage of public cloud flexibility for less sensitive operations, creating the best balance of control, security, and cost-effectiveness.What's the difference between hybrid cloud and multi-cloud?Hybrid cloud differs from multi-cloud primarily in architecture integration, vendor strategy, and operational management approach. Hybrid cloud combines private and public cloud environments with on-premises infrastructure into a unified, interoperable system, while multi-cloud uses multiple independent cloud providers without requiring integration between them.The architectural approach mainly differs in its design philosophy. Hybrid cloud creates a single, cohesive environment where workloads can move seamlessly between private clouds, public clouds, and on-premises systems through orchestration software and secure networking.Multi-cloud maintains separate, distinct cloud environments from different providers, with each serving specific functions independently without cross-platform integration or data sharing.Vendor strategy and risk management differ between these approaches. Hybrid cloud typically involves fewer providers but focuses on a deep integration between private infrastructure and selected public cloud services to balance security, compliance, and flexibility needs. Multi-cloud deliberately spreads workloads across multiple cloud vendors to avoid vendor lock-in, reduce dependency risks, and access best-of-breed services from different providers.Operational complexity and cost structures vary considerably.Hybrid cloud requires advanced orchestration tools and networking to manage unified operations across integrated environments, often resulting in higher initial setup costs but streamlined ongoing management. Multi-cloud involves managing multiple separate vendor relationships, billing systems, and operational processes, which can increase administrative overhead but provides greater flexibility in cost optimization and service selection. 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This separation helps organizations maintain compliance with industry standards like HIPAA or PCI-DSS.Improved flexibility: Companies can handle traffic spikes by automatically shifting workloads from private to public cloud resources during peak demand. This flexibility prevents performance issues without requiring permanent infrastructure investments.Business continuity: Hybrid cloud provides multiple backup options across different environments, reducing the risk of complete system failures. If one environment experiences issues, workloads can continue running on alternative infrastructure.Faster new idea: Development teams can quickly access advanced public cloud services like machine learning tools while keeping production data secure in private environments. This setup accelerates time-to-market for new applications and features.Workload optimization: Different applications can run in their most suitable environments based on performance, security, and cost requirements. 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This separation allows experimentation without affecting critical business operations.Application modernization: Organizations gradually migrate legacy applications by keeping core systems on-premises while moving supporting services to public cloud. This phased approach reduces risk while enabling access to modern cloud services.Edge computing integration: Companies process data locally at edge locations while connecting to centralized cloud resources for analysis and storage. Manufacturing facilities use this setup to monitor equipment in real-time while storing historical data in the cloud.Hybrid analytics and AI: Businesses combine on-premises data with cloud-based machine learning services to gain insights while maintaining data control. 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Poor network performance can create bottlenecks that reduce the benefits of hybrid cloud architecture.Cost management difficulties: Tracking and controlling expenses across multiple cloud providers and on-premises infrastructure can be complicated. Organizations often find it hard to predict costs and may experience unexpected charges from different services and data transfer fees.Vendor lock-in risks: Choosing specific cloud platforms or technologies can make it difficult to switch providers later. Organizations must balance the benefits of integrated services with the flexibility to change their hybrid cloud plan over time.How to develop a hybrid cloud strategyYou develop a hybrid cloud plan by assessing your current infrastructure, defining clear objectives, and creating a roadmap that balances workload placement, security requirements, and cost optimization across private and public cloud environments.First, conduct a complete audit of your existing IT infrastructure, applications, and data. Document which systems handle sensitive information, which applications experience variable demand, and what compliance requirements you must meet. This assessment forms the foundation for deciding what stays on-premises versus what moves to public cloud.Next, define specific business objectives for your hybrid approach. Determine if you're prioritizing cost reduction, improved flexibility, disaster recovery, or regulatory compliance. Set measurable goals like reducing infrastructure costs by 20% or improving application use speed by 50%.Then, classify your workloads based on sensitivity, performance requirements, and compliance needs. Place highly regulated data and mission-critical applications on private infrastructure, while identifying variable or development workloads that can benefit from public cloud elasticity.Select the right mix of private and public cloud services that align with your workload classification. Evaluate providers based on their integration capabilities, security certifications, and pricing models. Ensure your chosen platforms can communicate effectively through APIs and management tools.Design your network architecture to enable secure, high-performance connectivity between environments. Plan for dedicated connections, VPNs, or hybrid networking solutions that maintain data integrity while allowing cooperation workload movement between private and public resources.Establish governance policies that define when and how workloads move between environments. Create automated rules for scaling to public cloud during peak demand and returning to private infrastructure during normal operations. Include data residency requirements and security protocols in these policies.Finally, use monitoring and management tools that provide unified visibility across all environments. Choose platforms that track performance, costs, and security across your hybrid infrastructure, enabling you to improve resource allocation and identify improvement opportunities.Start with a pilot project involving non-critical workloads to test your hybrid architecture and refine your processes before migrating essential business applications.Gcore hybrid cloud solutionsWhen building a hybrid cloud architecture that can handle both sensitive workloads and flexible applications, the underlying infrastructure becomes the foundation for success. Gcore's hybrid cloud solutions address these complex requirements with 210+ points of presence worldwide and 30ms average latency, ensuring your private and public cloud components work together smoothly. Our edge cloud infrastructure supports the demanding connectivity requirements that hybrid environments need, while our AI infrastructure capabilities help you process workloads effectively across different cloud layers.Explore how Gcore's global infrastructure can support your hybrid cloud plan. Frequently asked questionsWhat's the difference between hybrid cloud and private cloud?Hybrid cloud combines private cloud, public cloud, and on-premises infrastructure into one integrated environment, while private cloud is a dedicated computing environment used exclusively by one organization. Hybrid cloud offers flexibility to move workloads between environments based on security, compliance, and cost needs, whereas private cloud provides maximum control and security but lacks the flexibility and cost benefits of public cloud resources.Is hybrid cloud more expensive than public cloud?Yes, hybrid cloud is typically more expensive than public cloud due to the complexity of managing multiple environments and maintaining private infrastructure alongside public cloud services.How secure is hybrid cloud compared to on-premises infrastructure?Hybrid cloud security is comparable to on-premises infrastructure when properly configured, offering similar data protection with added flexibility. Organizations can maintain sensitive data on private infrastructure while using public cloud resources for less critical workloads, creating a security model that matches their specific risk tolerance.What skills are needed to manage hybrid cloud?Managing hybrid cloud requires technical skills in cloud platforms, networking, security, and automation tools. Key competencies include virtualization technologies. API management, infrastructure-as-code, identity management, and monitoring across multiple environments.How long does hybrid cloud implementation take?Hybrid cloud implementation typically takes 6-18 months, depending on your existing infrastructure complexity and integration requirements. Organizations with established on-premises systems and clear data governance policies can complete basic hybrid deployments in 3-6 months, while complex enterprise environments requiring wide security configurations and legacy system integration may need 12-24 months.

What is cloud storage, and how does it work?

Cloud storage is a digital storage solution that allows users to save and access files over the internet instead of on local devices like hard drives or USB sticks.Cloud storage works by storing data on remote servers managed by third-party providers, accessible via the internet on a pay-as-you-go basis. Users upload their files through web browsers or applications, and the cloud provider handles all the technical infrastructure, including server maintenance, security, and data backup.This system eliminates the need for physical storage hardware while providing access from any internet-connected device.The main types of cloud storage include object storage, file storage, and block storage, each designed for different use cases. Object storage handles unstructured data like images and videos, file storage works like traditional network drives for document sharing, and block storage provides raw storage volumes for applications. Each type offers distinct performance characteristics and pricing models to match specific business needs.Cloud storage use models include public cloud, private cloud, hybrid cloud, and multi-cloud options, offering varying levels of control, security, and flexibility.Public cloud storage is hosted by third-party providers and offers cost effectiveness through shared infrastructure, while private cloud provides dedicated resources for organizations requiring enhanced security. Hybrid and multi-cloud approaches combine multiple use models to balance flexibility with specific operational requirements.What is cloud storage?Cloud storage is a service that stores your data on remote servers accessed through the internet, rather than on your local computer or physical devices. When you save files to cloud storage, they're stored in data centers managed by cloud providers and can be accessed from any device with an internet connection. This model eliminates the need to own and maintain physical storage hardware while providing flexible capacity that grows with your needs. Cloud storage operates on a pay-as-you-go basis, so you only pay for the storage space you actually use.How does cloud storage work?Cloud storage works by storing your files and data on remote servers owned and managed by third-party providers, which you can access through the internet from any device with a connection. Instead of saving files to your computer's hard drive or a physical storage device, the data gets uploaded to servers located in data centers around the world.When you save a file to cloud storage, it's transmitted over the internet to these remote servers using encryption protocols for security. The cloud provider automatically creates multiple copies of your data across different servers and locations to prevent loss if one server fails.This process, called redundancy, ensures your files remain accessible even during hardware failures or maintenance.You access your stored files through web browsers, mobile apps, or desktop applications that connect to the cloud provider's servers. The system authenticates your identity through login credentials and retrieves the requested files from the server network. Modern cloud storage uses content delivery networks to serve your data from the geographically closest server location, reducing loading times.The storage infrastructure operates on a pay-as-you-use model, where you're charged based on the amount of data stored and bandwidth consumed.Cloud providers manage all the technical aspects, including server maintenance, security updates, and capacity growth, so you don't need to worry about hardware management or technical infrastructure.What are the main types of cloud storage?The main types of cloud storage refer to different categories of cloud-based data storage solutions that serve various business and technical needs. The main types of cloud storage are listed below.Object storage: This type stores data as objects in containers called buckets, making it ideal for unstructured data like images, videos, and documents. Object storage scales infinitely and works well for backup, archiving, and content distribution.File storage: File storage presents data in a traditional file system hierarchy with folders and directories. It's perfect for applications that need shared file access, like content management systems and development environments.Block storage: Block storage divides data into fixed-size blocks and attaches to virtual machines like traditional hard drives. It delivers high performance for databases and operating systems that require low-latency access.Public cloud storage: Third-party providers host and manage this storage type, offering pay-as-you-use pricing and automatic scaling. Public cloud storage reduces infrastructure costs but provides less control over data location and security.Private cloud storage: Organizations maintain dedicated cloud infrastructure either on-premises or through hosted private clouds. Private storage offers maximum control and security but requires higher investment and maintenance.Hybrid cloud storage: This approach combines public and private cloud storage to balance cost, performance, and security needs. Companies can keep sensitive data private while using public cloud for less critical workloads.Multi-cloud storage: Organizations use storage services from multiple cloud providers to avoid vendor lock-in and improve reliability. Multi-cloud strategies can reduce costs by up to 50% through optimized resource placement across providers.What are the different cloud storage deployment models?Cloud storage use models refer to the different ways organizations can structure and access cloud storage services based on their security, control, and flexibility needs. The cloud storage use models are listed below.Public cloud: Third-party providers host storage infrastructure that multiple organizations share over the internet. This model offers the lowest costs and highest flexibility since providers can distribute infrastructure expenses across many customers.Private cloud: Organizations maintain dedicated storage infrastructure either on-premises or through a single-tenant hosted solution. This approach provides maximum control and security but requires higher investment and internal management resources.Hybrid cloud: In this model, organizations combine public and private cloud storage, keeping sensitive data in private environments while using the public cloud for less critical workloads. This model allows companies to balance security requirements with cost effectiveness and flexibility needs.Multi-cloud: Organizations use storage services from multiple cloud providers simultaneously to avoid vendor lock-in and improve redundancy. This plan can reduce costs by up to 50% through optimized resource allocation across different providers.Community cloud: Multiple organizations with similar requirements share dedicated cloud infrastructure, splitting costs while maintaining higher security than public cloud. Government agencies and healthcare organizations commonly use this model to meet regulatory compliance needs.Edge cloud: Storage resources are distributed closer to end users through geographically dispersed data centers. This use reduces latency and improves performance for applications requiring real-time data access.What are the key benefits of cloud storage?The key benefits of cloud storage refer to the advantages organizations and individuals gain from storing data on remote servers accessed via the internet. These benefits are listed below.Cost savings: Cloud storage eliminates the need for expensive physical hardware, maintenance, and IT staff. Organizations can reduce storage costs by up to 50% through pay-as-you-use pricing models and shared infrastructure.Flexibility: Storage capacity can be increased or decreased instantly based on demand without hardware purchases. This flexibility allows businesses to handle data growth seamlessly, from gigabytes to petabytes.Accessibility: Files can be accessed from any device with an internet connection, anywhere in the world. This global access enables remote work, collaboration, and business continuity across different locations.Automatic backups: Cloud providers handle data replication and backup processes automatically. This protection ensures data recovery in case of hardware failures, natural disasters, or accidental deletion.Enhanced security: Professional cloud providers invest heavily in security measures, including encryption, firewalls, and access controls. These enterprise-grade protections often exceed what individual organizations can use on their own.Reduced maintenance: Cloud providers handle all server maintenance, software updates, and security patches. This removes the burden of technical management from internal IT teams.Collaboration features: Multiple users can access, edit, and share files simultaneously in real-time. Version control and permission settings ensure organized teamwork without data conflicts.What are common cloud storage use cases?Cloud storage use cases refer to the specific ways organizations and individuals apply cloud storage solutions to meet their data storage, management, and accessibility needs. The cloud storage use cases are listed below.Data backup and recovery: Organizations use cloud storage to create secure copies of critical data that can be restored if primary systems fail. This approach protects against hardware failures, natural disasters, and cyberattacks while reducing the cost of maintaining physical backup infrastructure.File sharing and collaboration: Teams store documents, presentations, and media files in the cloud to enable real-time collaboration across different locations. Multiple users can access, edit, and comment on files simultaneously, improving productivity and reducing version control issues.Website and application hosting: Developers use cloud storage to host static websites, store application assets, and manage content delivery. This setup provides flexible bandwidth and global accessibility without requiring physical server maintenance.Big data analytics and archiving: Companies store large datasets in the cloud for analysis while archiving older data at lower costs. Cloud storage supports data lakes and warehouses that can scale to handle petabytes of information for business intelligence and machine learning applications.Content distribution: Media companies and content creators use cloud storage to distribute videos, images, and audio files to global audiences. The distributed nature of cloud infrastructure ensures fast content delivery regardless of user location.Disaster recovery planning: Organizations replicate their entire IT infrastructure in the cloud as a failsafe against major disruptions. This plan allows businesses to maintain operations even when primary data centers become unavailable.Software development and testing: Development teams use cloud storage to manage code repositories, store build artifacts, and maintain testing environments. This approach enables continuous combination and use while supporting distributed development workflows.How to choose the right cloud storage solutionYou choose the right cloud storage solution by evaluating your storage requirements, performance needs, security standards, budget constraints, and combination capabilities with your existing systems.First, calculate your current data volume and estimate growth over the next 2-3 years. Add a 30% buffer to your projected needs since data growth often exceeds expectations.Next, determine your performance requirements based on data access patterns. Choose hot storage for frequently accessed files like active databases, warm storage for monthly backups, and cold storage for long-term archives that you rarely need.Then, evaluate security and compliance requirements specific to your industry. Healthcare organizations need HIPAA compliance, financial services require SOX compliance, and companies handling European data must meet GDPR standards.Compare the total cost of ownership across providers, including storage fees, data transfer costs, and API request charges. Reserved capacity plans typically offer 20-40% savings compared to pay-as-you-go pricing but require upfront commitments.Assess combination capabilities with your current infrastructure and applications. Verify that the solution supports your required APIs, authentication methods, and backup tools to avoid costly migrations or custom development.Test disaster recovery and backup features by running simulated data loss scenarios. Ensure the provider offers appropriate recovery time objectives (RTO) and recovery point objectives (RPO) that match your business continuity requirements.Finally, review the provider's service level agreements (SLAs) for uptime guarantees, typically ranging from.Start with a pilot project using a small dataset to validate performance, costs, and combinations before committing to a full migration.Gcore cloud storage solutionsWhen using cloud storage solutions at scale, performance and global accessibility become critical factors. Gcore's cloud storage infrastructure addresses these needs with 180+ points of presence worldwide and 30ms average latency, ensuring consistent data access across all regions while supporting the demanding requirements of modern applications and workloads.Our edge cloud architecture goes beyond traditional storage by combining seamlessly with CDN and AI infrastructure services, creating a complete ecosystem that eliminates the complexity of managing multiple providers. This integrated approach typically reduces use time and operational overhead while maintaining the enterprise-grade performance needed for mission-critical applications.Discover how Gcore's cloud storage solutions can accelerate your data infrastructure at gcore.com/cloud.Frequently asked questionsWhat's the difference between cloud storage and cloud backup?Cloud storage saves files for access, while cloud backup protects data for recovery. Storage is your primary file location that you actively access, whereas backup creates copies of existing data to restore after loss, corruption, or disasters.How much does cloud storage cost?Cloud storage costs range from free tiers up to $0.023 per GB monthly for standard storage, with pricing varying by provider, storage type, and usage patterns. Enterprise solutions with advanced features can cost more depending on performance requirements and data transfer needs.Is cloud storage safe for sensitive business data?Yes, cloud storage is safe for sensitive business data when properly configured with enterprise-grade security measures, including encryption, access controls, and compliance certifications. Most major cloud providers offer security features that exceed what many businesses can use on-premises, including 256-bit encryption, multi-factor authentication, and SOC 2 Type II compliance.What's the difference between hot, warm, and cold storage?Hot storage provides instant access for frequently used data, warm storage offers slower retrieval for occasionally accessed files, and cold storage delivers the lowest-cost archival solution for rarely accessed data. Access times range from milliseconds for hot storage to minutes or hours for cold storage, with costs decreasing especially as access frequency requirements drop.

What is Infrastructure as a Service? Definition, benefits, and use cases

Infrastructure as a Service (IaaS) is a cloud computing service model that provides virtualized computing resources over the internet, including servers, storage, and networking components.IaaS enables organizations to outsource their entire IT infrastructure to cloud providers, allowing on-demand access and management of resources without investing in physical hardware. This service model operates through virtualization technology, where physical hardware is abstracted into virtual resources that can be provisioned and scaled instantly based on user requirements.The main components of IaaS include virtual machines, storage systems, networking hardware, and management software for provisioning and scaling resources.Leading cloud providers maintain data centers with thousands of physical servers, storage arrays, and networking equipment that are pooled together to create these virtualized resources accessible through web-based interfaces and APIs.IaaS differs from other cloud service models in terms of control and responsibility distribution between providers and users. While IaaS providers maintain and manage the physical infrastructure, users are responsible for installing and managing their own operating systems, applications, and data, offering greater flexibility compared to Platform as a Service (PaaS) and Software as a Service (SaaS) models.This cloud computing approach matters because it allows businesses to access enterprise-grade infrastructure without the capital expenses and maintenance overhead of physical hardware. It also benefits from a pay-as-you-go pricing model that aligns costs directly with resource consumption.What is Infrastructure as a Service (IaaS)?Infrastructure as a Service (IaaS) is a cloud computing service model that provides virtualized computing resources over the internet, including servers, storage, and networking components that organizations can access on demand without owning physical hardware. This model allows companies to outsource their entire IT infrastructure to cloud providers while maintaining control over their operating systems, applications, and data. IaaS operates on a pay-as-you-go pricing structure where users only pay for the resources they consume, making it cost-effective for businesses with variable workloads.According to Precedence Research (2025), the global IaaS market is projected to reach $898.52 billion by 2031, growing at a compound annual growth rate of 26.82% from 2024 to 2034.How does Infrastructure as a Service work?Infrastructure as a Service works by providing virtualized computing resources over the internet on a pay-as-you-go basis, allowing organizations to access servers, storage, and networking without owning physical hardware. Cloud providers maintain data centers with physical infrastructure while delivering these resources as virtual services that users can provision and manage remotely.The process begins when users request computing resources through a web-based control panel or API. The provider's management software automatically allocates virtual machines from their physical server pools, assigns storage space, and configures network connections.Users receive root-level access to their virtual infrastructure, giving them complete control over operating systems, applications, and data. At the same time, the provider handles hardware maintenance, security updates, and physical facility management.IaaS operates through resource pooling, where providers share physical hardware across multiple customers using virtualization technology. This creates isolated virtual environments that scale up or down based on demand. Users pay only for consumed resources like CPU hours, storage gigabytes, and data transfer, making it cost-effective for variable workloads.What are the main components of IaaS?The main components of IaaS refer to the core infrastructure elements that cloud providers deliver as virtualized services over the internet. The main components of IaaS are listed below.Virtual machines: Virtual machines are software-based computers that run on physical servers but act like independent systems. Users can configure them with specific operating systems, CPU power, and memory based on their needs. They provide the computing power for running applications and processing data.Storage systems: IaaS includes various storage options like block storage for databases and file storage for documents and media. These systems can scale up or down automatically based on demand. Users pay only for the storage space they actually use.Networking infrastructure: This includes virtual networks, load balancers, firewalls, and IP addresses that connect resources together. The networking layer ensures secure communication between different components. It also manages traffic distribution and provides internet connectivity.Management interfaces: These are dashboards and APIs that let users control their infrastructure resources remotely. They provide tools for monitoring performance, setting up automated scaling, and managing security settings. Users can provision new resources or shut down unused ones through these interfaces.Security services: IaaS platforms include built-in security features like encryption, access controls, and threat detection. These services protect data both in transit and at rest. They also provide compliance tools to meet industry regulations.Backup and disaster recovery: These components automatically create copies of data and applications to prevent loss. They can restore systems quickly if hardware fails or data gets corrupted. Recovery services often include geographic redundancy across multiple data centers.How does IaaS compare to PaaS and SaaS?IaaS differs from PaaS and SaaS primarily in the level of infrastructure control, management responsibility, and service abstraction. IaaS provides virtualized computing resources like servers, storage, and networking that users manage directly, while PaaS offers a complete development platform with pre-configured runtime environments, and SaaS delivers ready-to-use applications accessible through web browsers.The technical architecture varies significantly across these models. IaaS users install and configure their own operating systems, middleware, and applications on virtual machines, giving them full control over the software stack.PaaS abstracts away infrastructure management by providing pre-built development frameworks, databases, and deployment tools, allowing developers to focus solely on application code. SaaS eliminates all technical management by delivering fully functional applications that users access without any installation or configuration.Management responsibilities shift dramatically between these service models. IaaS customers handle security patches, software updates, scaling decisions, and application monitoring while providers maintain only the physical infrastructure.PaaS splits responsibilities. Providers manage the platform layer, including runtime environments and scaling automation, while users focus on application development and data management. SaaS providers handle all technical operations, leaving users to manage only their data and user accounts.Cost structures and use cases also differ substantially. IaaS works best for organizations needing infrastructure flexibility and custom configurations. It typically costs more due to management overhead but offers maximum control.PaaS targets development teams seeking faster application deployment with moderate costs and reduced complexity. SaaS serves end-users wanting immediate functionality with the lowest total cost of ownership, operating on simple subscription models without technical expertise requirements.What are the key benefits of Infrastructure as a Service?The key benefits of Infrastructure as a Service refer to the advantages organizations gain when using cloud-based virtualized computing resources instead of owning physical hardware. The key benefits of Infrastructure as a Service are listed below.Cost reduction: Organizations eliminate upfront capital expenses for servers, storage, and networking equipment. They pay only for resources they actually use, converting fixed IT costs into variable operational expenses.Rapid scalability: Computing resources can be increased or decreased within minutes based on demand. This flexibility allows businesses to handle traffic spikes without over-provisioning hardware during quiet periods.Faster deployment: New virtual machines and storage can be provisioned in minutes rather than weeks. This speed enables development teams to launch projects quickly and respond to market opportunities.Reduced maintenance burden: Cloud providers handle hardware maintenance, security patches, and infrastructure updates. IT teams can focus on applications and business logic instead of managing physical equipment.Global accessibility: Resources are available from multiple geographic locations through internet connections. Teams can access infrastructure from anywhere, supporting remote work and distributed operations.Disaster recovery: Built-in backup and redundancy features protect against hardware failures and data loss. Many providers offer automated failover systems that maintain service availability during outages.Resource optimization: Organizations can right-size their infrastructure to match actual needs rather than estimating capacity. This precision reduces waste and improves resource efficiency across different workloads.What are common Infrastructure as a Service use cases?Infrastructure as a Service use cases refer to the specific business scenarios and applications where organizations deploy IaaS cloud computing resources to meet their operational needs. The Infrastructure as a Service use cases are listed below.Development and testing environments: Organizations use IaaS to quickly spin up isolated environments for software development and testing without purchasing dedicated hardware. Teams can create multiple test environments that mirror production systems, then destroy them when projects complete.Disaster recovery and backup: Companies deploy IaaS resources as backup infrastructure that activates when primary systems fail. This approach costs less than maintaining duplicate physical data centers while providing reliable failover capabilities.Web hosting and applications: Businesses host websites, web applications, and databases on IaaS platforms to handle traffic spikes and scale resources automatically. E-commerce sites particularly benefit during seasonal peaks when demand increases dramatically.Big data processing: Organizations use IaaS to access powerful computing resources for analyzing large datasets without investing in expensive hardware. Data scientists can provision high-memory instances for machine learning models, then release resources when analysis completes.Seasonal workload management: Companies with fluctuating demand patterns deploy IaaS to handle peak periods without maintaining excess capacity year-round. Tax preparation firms and retail businesses commonly use this approach during busy seasons.Geographic expansion: Businesses use IaaS to establish an IT presence in new markets without building physical infrastructure. Organizations can deploy resources in different regions to serve local customers with better performance and compliance.Legacy system migration: Companies move aging on-premises systems to IaaS platforms to extend their lifespan while planning modernization. This approach reduces maintenance costs and improves reliability without requiring immediate application rewrites.What are Infrastructure as a Service examples?Infrastructure as a Service examples refer to specific cloud computing platforms and services that provide virtualized computing resources over the internet on a pay-as-you-go basis. Examples of Infrastructure as a Service are listed below.Virtual machine services: Virtual machine service providers provide on-demand access to scalable virtual servers with customizable CPU, memory, and storage configurations. Users can deploy and manage their own operating systems and applications while the provider handles the physical hardware maintenance.Block storage solutions: Cloud-based storage services offer persistent, high-performance storage volumes that can be attached to virtual machines. These services provide data redundancy and backup capabilities without requiring physical storage infrastructure investment.Virtual networking platforms: These services deliver software-defined networking capabilities, including virtual private clouds, load balancers, and firewalls. Organizations can create isolated network environments and control traffic routing without managing physical networking equipment.Container hosting services: Cloud platforms that provide managed container orchestration and deployment capabilities for applications packaged in containers. These services handle the underlying infrastructure while giving developers control over application deployment and scaling.Bare metal cloud servers: Physical servers provisioned on-demand through cloud interfaces, offering dedicated hardware resources without virtualization overhead. These bare metal services combine the control of physical servers with the flexibility of cloud provisioning.GPU computing instances: Specialized virtual machines equipped with graphics processing units for high-performance computing tasks like machine learning and scientific simulations. These GPU service providers provide access to expensive GPU hardware without upfront capital investment.Database infrastructure services: Cloud platforms that provide the underlying infrastructure for database deployment while leaving database management to users. These services offer scalable compute and storage resources optimized for database workloads.How to choose the right IaaS providerYou choose the right IaaS provider by evaluating six critical factors: performance requirements, security standards, pricing models, scalability options, support quality, and integration capabilities.First, define your specific performance requirements, including CPU power, memory, storage speed, and network bandwidth. Test different instance types during free trials to measure actual performance against your workloads rather than relying on provider specifications alone.Next, evaluate security and compliance features based on your industry requirements. Check for certifications like SOC 2 and ISO 27001, as well as industry-specific standards such as HIPAA for healthcare or PCI DSS for payment processing.Then, compare pricing models across providers by calculating the total cost of ownership, not just hourly rates. Include costs for data transfer, storage, backup services, and support plans, as these can add 30-50% to your base compute costs.Assess scalability options, including auto-scaling capabilities, geographic availability, and resource limits. Verify that the provider can handle your peak demand periods and offers regions close to your users for optimal performance.Test customer support quality by submitting technical questions during your evaluation period. Check response times, technical expertise level, and availability of phone support versus ticket-only systems.Finally, verify integration capabilities with your existing tools and systems. Ensure the provider offers APIs, monitoring tools, and management interfaces that work with your current DevOps workflow and security tools.Start with a pilot project using 10-20% of your workload to validate performance, costs, and operational fit before committing to a full migration.Gcore Infrastructure as a Service solutionsWhen building modern applications and services, choosing the right infrastructure foundation becomes critical for both performance and cost control. Gcore's Infrastructure as a Service solutions address these challenges with a global network spanning 210+ locations worldwide, delivering consistent performance while maintaining competitive pricing through our pay-as-you-use model. Our platform combines enterprise-grade virtual machines, high-performance storage, and advanced networking capabilities, allowing you to scale resources instantly based on actual demand rather than projected capacity.What sets our approach apart is the integration of edge computing capabilities directly into the infrastructure layer. This reduces latency by up to 85% for end users while eliminating the complexity of managing multiple providers for different geographic regions.Explore how Gcore IaaS can accelerate your infrastructure deployment.Frequently asked questionsWhat's the difference between IaaS and traditional hosting?IaaS provides virtualized computing resources through the cloud with on-demand scaling, while traditional hosting offers fixed physical or virtual servers with limited flexibility. Traditional hosting requires upfront capacity planning and manual scaling, whereas IaaS automatically adjusts resources based on actual usage through pay-as-you-go pricing.Is IaaS suitable for small businesses?Yes. IaaS is suitable for small businesses because it eliminates upfront hardware costs and provides pay-as-you-go pricing that scales with actual usage. Small businesses can access enterprise-level infrastructure without the capital investment or maintenance overhead required for physical servers.What is Infrastructure as a Service in cloud computing?Infrastructure as a Service (IaaS) is a cloud computing model that provides virtualized computing resources like servers, storage, and networking over the internet on a pay-as-you-go basis. Organizations rent these resources instead of buying and maintaining physical hardware, while retaining control over their operating systems and applications.How much does IaaS cost compared to on-premises infrastructure?IaaS typically costs 20-40% less than on-premises infrastructure when factoring in hardware, maintenance, staffing, and facility expenses. Organizations save on upfront capital expenditure and benefit from pay-as-you-go pricing that scales with actual usage.Can I migrate existing applications to IaaS?Yes, you can migrate existing applications to IaaS by moving your software, data, and configurations to cloud-based virtual machines while maintaining the same operating environment. The migration process involves assessment, planning, data transfer, and testing to ensure applications run properly on the new infrastructure.What happens if my IaaS provider experiences an outage?When your IaaS provider experiences an outage, your virtual machines, applications, and data hosted on their infrastructure become temporarily unavailable until service is restored. Most enterprise IaaS providers offer 99.9% uptime guarantees and maintain redundant systems across multiple data centers to minimize outage duration and impact.

What is cloud security? Definition, challenges, and best practices

Cloud security is the discipline of protecting cloud-based infrastructure, applications, and data from internal and external threats, ensuring confidentiality, integrity, and availability of cloud resources. This protection model has become important as organizations increasingly move their operations to cloud environments.Cloud security operates under a shared responsibility model where providers secure the infrastructure while customers secure their deployed applications, data, and access policies. This responsibility distribution varies by service model, with Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) each requiring different levels of customer involvement.The model creates clear boundaries between provider and customer security obligations.Cloud security protects resources and data individually rather than relying on a traditional perimeter defense approach. This protection method uses granular controls like cloud security posture management (CSPM), network segmentation, and encryption to secure specific assets. The approach addresses the distributed nature of cloud computing, where resources exist across multiple locations and services.Organizations face several cloud security challenges, including misconfigurations, account hijacking, data breaches, and insider threats.Cloud security matters because the average cost of a cloud data breach has reached $5 million according to IBM, making effective security controls essential for protecting both financial assets and organizational reputation.What is cloud security?Cloud security is the practice of protecting cloud-based infrastructure, applications, and data from cyber threats through specialized technologies, policies, and controls designed for cloud environments. This protection operates under a shared responsibility model where cloud providers secure the underlying infrastructure while customers protect their applications, data, and access configurations.Cloud security includes identity and access management (IAM), data encryption, continuous monitoring, workload protection, and automated threat detection to address the unique challenges of distributed cloud resources. The approach differs from traditional security by focusing on individual resource protection rather than perimeter defense, as cloud environments require granular controls and real-time visibility across flexible infrastructure.How does cloud security work?Cloud security works by using a multi-layered defense system that protects data, applications, and infrastructure hosted in cloud environments through shared responsibility models, identity controls, and continuous monitoring. Unlike traditional perimeter-based security, cloud security operates on a distributed model where protection is applied at multiple levels across the cloud stack.The foundation of cloud security rests on the shared responsibility model, where cloud providers secure the underlying infrastructure while customers protect their applications, data, and access policies. This division varies by service type - in Infrastructure as a Service (IaaS), customers handle more security responsibilities, including operating systems and network controls. In contrast, Software as a Service (SaaS) shifts most security duties to the provider.Identity and Access Management (IAM) serves as the primary gatekeeper, controlling who can access cloud resources and what actions they can perform.IAM systems use role-based access control (RBAC) and multi-factor authentication (MFA) to verify user identities and enforce least-privilege principles. These controls prevent unauthorized access even if credentials are compromised.Data protection operates through encryption both at rest and in transit, ensuring information remains unreadable to unauthorized parties. Cloud security platforms also employ workload protection agents that monitor running applications for suspicious behavior. At the same time, Security Information and Event Management (SIEM) systems collect and analyze logs from across the cloud environment to detect potential threats.Continuous monitoring addresses the flexible nature of cloud environments, where resources are constantly created, modified, and destroyed.Cloud Security Posture Management (CSPM) tools automatically scan configurations against security best practices, identifying misconfigurations that could expose data.What are the main cloud security challenges?Cloud security challenges refer to the obstacles and risks that organizations face when protecting their cloud-based infrastructure, applications, and data from threats. The main cloud security challenges are listed below.Misconfigurations: According to Zscaler research, improper cloud settings create the most common security vulnerabilities, with 98.6% of organizations having misconfigurations that cause critical risks to data and infrastructure. These include exposed storage buckets, overly permissive access controls, and incorrect network settings.Shared responsibility confusion: Organizations struggle to understand which security tasks belong to the cloud provider versus what their own responsibilities are. This confusion leads to security gaps where critical protections are assumed to be handled by the other party.Identity and access management complexity: Managing user permissions across multiple cloud services and environments becomes difficult as organizations scale. Weak authentication, excessive privileges, and poor access controls create entry points for attackers.Data protection across environments: Securing sensitive data as it moves between on-premises systems, multiple cloud platforms, and edge locations requires consistent encryption and monitoring. Organizations often lack visibility into where their data resides and how it's protected.Compliance and regulatory requirements: Meeting industry standards like GDPR, HIPAA, or SOC 2 becomes more complex in cloud environments where data location and processing methods may change flexibly. Organizations must maintain compliance across multiple jurisdictions and service models.Limited visibility and monitoring: Traditional security tools often can't provide complete visibility into cloud workloads, containers, and serverless functions. This blind spot makes it difficult to detect threats, track user activities, and respond to incidents quickly.Insider threats and privileged access: Cloud environments often grant broad administrative privileges that can be misused by malicious insiders or compromised accounts. The distributed nature of cloud access makes it harder to monitor and control privileged user activities.What are the essential cloud security technologies and tools?Essential cloud security technologies and tools refer to the specialized software, platforms, and systems designed to protect cloud-based infrastructure, applications, and data from cyber threats and operational risks. The essential cloud security technologies and tools are listed below.Identity and access management (IAM): IAM systems control who can access cloud resources and what actions they can perform through role-based permissions and multi-factor authentication. These platforms prevent unauthorized access by requiring users to verify their identity through multiple methods before granting system entry.Cloud security posture management (CSPM): CSPM tools continuously scan cloud environments to identify misconfigurations, compliance violations, and security gaps across multiple cloud platforms. They provide automated remediation suggestions and real-time alerts when security policies are violated or resources are improperly configured.Data encryption services: Encryption technologies protect sensitive information both at rest in storage systems and in transit between cloud services using advanced cryptographic algorithms. These tools mean that even if data is intercepted or accessed without authorization, it remains unreadable without proper decryption keys.Cloud workload protection platforms (CWPP): CWPP solutions monitor and secure applications, containers, and virtual machines running in cloud environments against malware, vulnerabilities, and suspicious activities. They provide real-time threat detection and automated response capabilities specifically designed for flexible cloud workloads.Security information and event management (SIEM): Cloud-based SIEM platforms collect, analyze, and correlate security events from across cloud infrastructure to detect potential threats and compliance violations. These systems use machine learning and behavioral analysis to identify unusual patterns that may indicate security incidents.Cloud access security brokers (CASB): CASB solutions act as intermediaries between users and cloud applications, enforcing security policies and providing visibility into cloud usage across the organization. They monitor data movement, detect risky behaviors, and ensure compliance with regulatory requirements for cloud-based activities.Network security tools: Cloud-native firewalls and network segmentation tools control traffic flow between cloud resources and external networks using intelligent filtering rules. These technologies create secure network boundaries and prevent lateral movement of threats within cloud environments.What are the key benefits of cloud security?The key benefits of cloud security refer to the advantages organizations gain from protecting their cloud-based infrastructure, applications, and data from threats. The key benefits of cloud security are listed below.Cost reduction: Cloud security eliminates the need for expensive on-premises security hardware and reduces staffing requirements. Organizations can access enterprise-grade security tools through subscription models rather than large capital investments.Improved threat detection: Cloud security platforms use machine learning and AI to identify suspicious activities in real-time across distributed environments. These systems can detect anomalies that traditional security tools might miss.Automatic compliance: Cloud security solutions help organizations meet regulatory requirements like GDPR, HIPAA, and SOC 2 through built-in compliance frameworks. Automated reporting and audit trails simplify compliance management and reduce manual oversight.Reduced misconfiguration risks: Cloud security posture management tools automatically scan for misconfigurations and provide remediation guidance.Enhanced data protection: Cloud security provides multiple layers of encryption for data at rest, in transit, and in use. Advanced key management systems ensure that sensitive information remains protected even if other security measures fail.Flexible security coverage: Cloud security solutions automatically scale with business growth without requiring additional infrastructure investments. Organizations can protect new workloads and applications instantly as they use them.Centralized security management: Cloud security platforms provide unified visibility across multiple cloud environments and hybrid infrastructures. Security teams can monitor, manage, and respond to threats from a single dashboard rather than juggling multiple tools.What are the challenges of cloud security?Cloud security challenges refer to the obstacles and risks organizations face when protecting their cloud-based infrastructure, applications, and data from threats. These challenges are listed below.Misconfigurations: Cloud environments are complex, and improper settings create security gaps that attackers can exploit. These errors include exposed storage buckets, overly permissive access controls, and incorrect network settings.Shared responsibility confusion: Organizations often misunderstand which security tasks belong to them versus their cloud provider. This confusion leads to gaps where critical security measures aren't implemented by either party. The division of responsibilities varies between IaaS, PaaS, and SaaS models, adding to the complexity.Identity and access management complexity: As organizations scale, managing user permissions across multiple cloud services and environments becomes difficult. Weak authentication methods and excessive privileges create entry points for unauthorized access. Multi-factor authentication and role-based access controls require careful planning and ongoing maintenance.Data protection across environments: Ensuring data remains encrypted and secure as it moves between on-premises systems and cloud platforms presents ongoing challenges. Organizations must track data location, apply appropriate encryption, and maintain compliance across different jurisdictions. Data residency requirements add another layer of complexity.Visibility and monitoring gaps: Traditional security tools often can't provide complete visibility into cloud environments and workloads. The flexible nature of cloud resources makes it hard to track all assets and their security status. Real-time monitoring becomes critical but technically challenging to use effectively.Compliance and regulatory requirements: Meeting industry standards and regulations in cloud environments requires continuous effort and specialized knowledge. Different regions have varying data protection laws that affect cloud deployments. Organizations must prove compliance while maintaining operational effectiveness.Insider threats and privileged access: Cloud environments often grant broad access to administrators and developers, creating risks from malicious or careless insiders. Monitoring privileged user activities without impacting productivity requires advanced tools and processes. The remote nature of cloud access makes traditional oversight methods less effective.How to implement cloud security best practices?You use cloud security best practices by establishing a complete security framework that covers identity management, data protection, monitoring, and compliance across your cloud environment.First, configure identity and access management (IAM) with role-based access control (RBAC) and multi-factor authentication (MFA). Create specific roles for different job functions and require MFA for all administrative accounts to prevent unauthorized access.Next, encrypt all data both at rest and in transit using industry-standard encryption protocols like AES256.Enable encryption for databases, storage buckets, and communication channels between services to protect sensitive information from interception.Then, use continuous security monitoring with automated threat detection tools. Set up real-time alerts for suspicious activities, failed login attempts, and unusual data access patterns to identify potential security incidents quickly.After that, establish cloud security posture management (CSPM) to scan for misconfigurations automatically. Configure automated remediation for common issues like open security groups, unencrypted storage, and overly permissive access policies.Create network segmentation using virtual private clouds (VPCs) and security groups to isolate different workloads. Limit communication between services to only what's necessary and use zero-trust network principles.Set up regular security audits and compliance monitoring to meet industry standards like SOC 2, HIPAA, or GDPR. Document all security controls and maintain audit trails for regulatory requirements.Finally, develop an incident response plan specifically for cloud environments. Include procedures for isolating compromised resources, preserving forensic evidence, and coordinating with your cloud provider's security team.Start with IAM and encryption as your foundation, then build additional security layers progressively to avoid overwhelming your team while maintaining strong protection.Gcore cloud securityWhen using cloud security measures, the underlying infrastructure becomes just as important as the security tools themselves. Gcore’s cloud security solutions address this need with a global network of 180+ points of presence and 30ms latency, ensuring your security monitoring and threat detection systems perform consistently across all regions. Our edge cloud infrastructure supports real-time security analytics and automated threat response without the performance bottlenecks that can leave your systems vulnerable during critical moments.What sets our approach apart is the combination of security directly into the infrastructure layer, eliminating the complexity of managing separate security vendors while providing enterprise-grade DDoS protection and encrypted data transmission as standard features. This unified approach typically reduces security management overhead by 40-60% compared to multi-vendor solutions, while maintaining the continuous monitoring capabilities.Explore how Gcore's integrated cloud security infrastructure can strengthen your defense plan at gcore.com/cloud.Frequently asked questionsWhat's the difference between cloud security and traditional approaches?Cloud security differs from traditional approaches by protecting distributed resources through shared responsibility models and cloud-native tools, while traditional security relies on perimeter-based defenses around centralized infrastructure. Traditional security assumes a clear network boundary with firewalls and intrusion detection systems protecting internal resources. In contrast, cloud security secures individual workloads, data, and identities across multiple environments without relying on network perimeters.What is cloud security posture management?Cloud security posture management (CSPM) is a set of tools and processes that continuously monitor cloud environments to identify misconfigurations, compliance violations, and security risks across cloud infrastructure. CSPM platforms automatically scan cloud resources, assess security policies, and provide remediation guidance to maintain proper security configurations.How does Zero Trust apply to cloud security?Zero Trust applies to cloud security by treating every user, device, and connection as untrusted and requiring verification before granting access to cloud resources. This approach replaces traditional perimeter-based security with continuous authentication, micro-segmentation, and least-privilege access controls across cloud environments.What compliance standards apply?Cloud security must comply with industry-specific regulations like SOC 2, ISO 27001, GDPR, HIPAA, PCI DSS, and FedRAMP, depending on your business sector and geographic location. Organizations typically need to meet multiple standards simultaneously, with financial services requiring PCI DSS compliance, healthcare needing HIPAA certification, and EU operations mandating GDPR adherence.What happens during a cloud security breach?During a cloud security breach, attackers gain unauthorized access to cloud resources, potentially exposing sensitive data, disrupting services, and causing financial damage averaging $5 million per incident, according to IBM. The breach typically involves exploiting misconfigurations, compromised credentials, or vulnerabilities to access cloud infrastructure, applications, or data stores.

Query your cloud with natural language: A developer’s guide to Gcore MCP

What if you could ask your infrastructure questions and get real answers?With Gcore’s open-source implementation of the Model Context Protocol (MCP), now you can. MCP turns generative AI into an agent that understands your infrastructure, responds to your queries, and takes action when you need it to.In this post, we’ll demo how to use MCP to explore and inspect your Gcore environment just by prompting, to list resources, check audit logs, and generate cost reports. We’ll also walk through a fun bonus use case: provisioning infrastructure and exporting it to Terraform.What is MCP and why do devs love it?Originally developed by Anthropic, the Model Context Protocol (MCP) is an open standard that turns language models into agents that interact with structured tools: APIs, CLIs, or internal systems. Gcore’s implementation makes this protocol real for our customers.With MCP, you can:Ask questions about your infrastructureList, inspect, or filter cloud resourcesView cost data, audit logs, or deployment metadataExport configs to TerraformChain multi-step operations via natural languageGcore MCP removes friction from interacting with your infrastructure. Instead of wiring together scripts or context-switching across dashboards and CLIs, you can just…ask.That means:Faster debugging and auditsMore accessible infra visibilityFewer repetitive setup tasksBetter team collaborationBecause it’s open source, backed by the Gcore Python SDK, you can plug it into other APIs, extend tool definitions, or even create internal agents tailored to your stack. Explore the GitHub repo for yourself.What can you do with it?This isn’t just a cute chatbot. Gcore MCP connects your cloud to real-time insights. Here are some practical prompts you can use right away.Infrastructure inspection“List all VMs running in the Frankfurt region”“Which projects have over 80% GPU utilization?”“Show all volumes not attached to any instance”Audit and cost analysis“Get me the API usage for the last 24 hours”“Which users deployed resources in the last 7 days?”“Give a cost breakdown by region for this month”Security and governance“Show me firewall rules with open ports”“List all active API tokens and their scopes”Experimental automation“Create a secure network in Tokyo, export to Terraform, then delete it”We’ll walk through that last one in the full demo below.Full video demoWatch Gcore’s AI Software Engineer, Algis Dumbris, walk through setting up MCP on your machine and show off some use cases. If you prefer reading, we’ve broken down the process step-by-step below.Step-by-step walkthroughThis section maps to the video and shows exactly how to replicate the workflow locally.1. Install MCP locally (0:00–1:28)We use uv to isolate the environment and pull the project directly from GitHub.curl -Ls https://astral.sh/uv/install.sh | sh uvx add gcore-mcp-server https://github.com/G-Core/gcore-mcp-server Requirements:PythonGcore account + API keyTool config file (from the repo)2. Set up your environment (1:28–2:47)Configure two environment variables:GCORE_API_KEY for authGCORE_TOOLS to define what the agent can access (e.g., regions, instances, costs, etc.)Soon, tool selection will be automatic, but today you can define your toolset in YAML or JSON.3. Run a basic query (3:19–4:11)Prompt:“Find the Gcore region closest to Antalya.”The agent maps this to a regions.list call and returns: IstanbulNo need to dig through docs or write an API request.4. Provision, export, and clean up (4:19–5:32)This one’s powerful if you’re experimenting with CI/CD or infrastructure-as-code.Prompt:“Create a secure network in Tokyo. Export to Terraform. Then clean up.”The agent:Provisions the networkExports it to Terraform formatDestroys the resources afterwardYou get usable .tf output with no manual scripting. Perfect for testing, prototyping, or onboarding.Gcore: always building for developersTry it now:Clone the repoInstall UVX + configure your environmentStart prompting your infrastructureOpen issues, contribute tools, or share your use casesThis is early-stage software, and we’re just getting started. Expect more tools, better UX, and deeper integrations soon.Watch how easy it is to deploy an inference instance with Gcore

Cloud computing: types, deployment models, benefits, and how it works

Cloud computing is a model for enabling on-demand network access to a shared pool of configurable computing resources, such as networks, servers, storage, applications, and services that can be rapidly provisioned and released with minimal management effort or service provider interaction. According to research by Gartner (2024), the global cloud computing market size is projected to reach $1.25 trillion by 2025, reflecting the rapid growth and widespread adoption of these services.The National Institute of Standards and Technology (NIST) defines five core characteristics that distinguish cloud computing from traditional IT infrastructure. These include on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service.Each characteristic addresses specific business needs while enabling organizations to access computing resources without maintaining physical hardware on-premises.Cloud computing services are organized into three main categories that serve different business requirements and technical needs. Infrastructure as a Service (IaaS) provides basic computing resources, Platform as a Service (PaaS) offers development environments and tools, and Software as a Service (SaaS) delivers complete applications over the internet. Major cloud providers typically guarantee 99.9% or higher uptime in service level agreements to ensure reliable access to these services.Organizations can choose from four primary use models based on their security, compliance, and operational requirements. Public cloud services are offered over the internet to anyone, private clouds are proprietary networks serving limited users, hybrid clouds combine public and private cloud features, and community clouds serve specific groups with shared concerns. Each model provides different levels of control, security, and cost structures.Over 90% of enterprises use some form of cloud services as of 2024, according to Forrester Research (2024), making cloud computing knowledge important for modern business operations. This widespread adoption reflects how cloud computing has become a cornerstone of digital change and competitive advantage across industries.What is cloud computing?Cloud computing is a model that delivers computing resources like servers, storage, databases, and software over the internet on demand, allowing users to access and use these resources without owning or managing the physical infrastructure. Instead of buying and maintaining your own servers, you can rent computing power from cloud providers and scale resources up or down based on your needs.Over 90% of enterprises now use some form of cloud services, with providers typically guaranteeing 99.9% or higher uptime in their service agreements.The three main service models offer different levels of control and management. Infrastructure as a Service (IaaS) provides basic computing resources like virtual machines and storage. Platform as a Service (PaaS) adds development tools and runtime environments, and Software as a Service (SaaS) delivers complete applications that are ready to use. Each model handles different aspects of the technology stack, so you only manage what you need while the provider handles the rest.Cloud use models vary by ownership and access control. Public clouds serve multiple customers over the internet, private clouds operate exclusively for one organization, and hybrid clouds combine both approaches for flexibility. This variety lets organizations choose the right balance of cost, control, and security for their specific needs while maintaining the core benefits of cloud computing's flexible, elastic infrastructure.What are the main types of cloud computing services?The main types of cloud computing services refer to the different service models that provide computing resources over the internet with varying levels of management and control. The main types of cloud computing services are listed below.Infrastructure as a service (IaaS): This model provides basic computing infrastructure, including virtual machines, storage, and networking resources over the internet. Users can install and manage their own operating systems, applications, and development frameworks while the provider handles the physical hardware.Platform as a service (PaaS): This service offers a complete development and use environment in the cloud, including operating systems, programming languages, databases, and web servers. Developers can build, test, and use applications without managing the underlying infrastructure complexity.Software as a service (SaaS): This model delivers fully functional software applications over the internet through a web browser or mobile app. Users access the software on a subscription basis without needing to install, maintain, or update the applications locally.Function as a service (FaaS): Also known as serverless computing, this model allows developers to run individual functions or pieces of code in response to events. The cloud provider automatically manages server provisioning, scaling, and maintenance while charging only for actual compute time used.Database as a service (DBaaS): This service provides managed database solutions in the cloud, handling database administration tasks like backups, updates, and scaling. Organizations can access database functionality without maintaining physical database servers or hiring specialized database administrators.Storage as a service (STaaS): This model offers flexible cloud storage solutions for data backup, archiving, and file sharing needs. Users can store and retrieve data from anywhere with internet access while paying only for the storage space they actually use.What are the different cloud deployment models?Cloud use models refer to the different ways organizations can access and manage cloud computing resources based on ownership, location, and access control. The cloud use models are listed below.Public cloud: Services are delivered over the internet and shared among multiple organizations by third-party providers. Anyone can purchase and use these services on a pay-as-you-go basis, making them cost-effective for businesses without large upfront investments.Private cloud: Computing resources are dedicated to a single organization and can be hosted on-premises or by a third party. This model offers greater control, security, and customization options but requires higher costs and more management overhead.Hybrid cloud: Organizations combine public and private cloud environments, allowing data and applications to move between them as needed. This approach provides flexibility to keep sensitive data in private clouds while using public clouds for less critical workloads.Community cloud: Multiple organizations with similar requirements share cloud infrastructure and costs. Government agencies, healthcare organizations, or financial institutions often use this model to meet specific compliance and security standards.Multi-cloud: Organizations use services from multiple cloud providers to avoid vendor lock-in and improve redundancy. This plan allows businesses to choose the best services from different providers while reducing dependency on any single vendor.How does cloud computing work?Cloud computing works by delivering computing resources like servers, storage, databases, and software over the internet on an on-demand basis. Instead of owning physical hardware, users access these resources through web browsers or applications, while cloud providers manage the underlying infrastructure in data centers worldwide.The system operates through a front-end and back-end architecture. The front end includes your device, web browser, and network connection that you use to access cloud services.The back end consists of servers, storage systems, databases, and applications housed in the provider's data centers. When you request a service, the cloud infrastructure automatically allocates the necessary resources from its shared pool.The technology achieves its flexibility through virtualization, which creates multiple virtual instances from single physical servers. Resource pooling allows providers to serve multiple customers from the same infrastructure, while rapid elasticity automatically scales resources up or down based on demand.This elastic scaling can reduce resource costs by up to 30% compared to fixed infrastructure, according to McKinsey (2024), making cloud computing both flexible and cost-effective for businesses of all sizes.What are the key benefits of cloud computing?The key benefits of cloud computing refer to the advantages organizations and individuals gain from using internet-based computing services instead of traditional on-premises infrastructure. The key benefits of cloud computing are listed below.Cost reduction: Organizations eliminate upfront hardware investments and reduce ongoing maintenance expenses by paying only for resources they actually use. Cloud providers handle infrastructure management, reducing IT staffing costs and operational overhead.Flexibility and elasticity: Computing resources can expand or contract automatically based on demand, ensuring best performance during traffic spikes. This flexibility prevents over-provisioning during quiet periods and under-provisioning during peak usage.Improved accessibility: Users can access applications and data from any device with an internet connection, enabling remote work and global collaboration. This mobility supports modern work patterns and increases productivity across distributed teams.Enhanced reliability: Cloud providers maintain multiple data centers with redundant systems and backup infrastructure to ensure continuous service availability.Automatic updates and maintenance: Software updates, security patches, and system maintenance happen automatically without user intervention. This automation reduces downtime and ensures systems stay current with the latest features and security protections.Disaster recovery: Cloud services include built-in backup and recovery capabilities that protect against data loss from hardware failures or natural disasters. Recovery times are typically faster than traditional backup methods since data exists across multiple locations.Environmental effectiveness: Shared cloud infrastructure uses resources more effectively than individual company data centers, reducing overall energy consumption. Large cloud providers can achieve better energy effectiveness through economies of scale and advanced cooling technologies.What are the drawbacks and challenges of cloud computing?The drawbacks and challenges of cloud computing refer to the potential problems and limitations organizations may face when adopting cloud-based services. They are listed below.Security concerns: Organizations lose direct control over their data when it's stored on third-party servers. Data breaches, unauthorized access, and compliance issues become shared responsibilities between the provider and customer. Sensitive information may be vulnerable to cyber attacks targeting cloud infrastructure.Internet dependency: Cloud services require stable internet connections to function properly. Poor connectivity or outages can completely disrupt business operations and prevent access to critical applications. Remote locations with limited bandwidth face particular challenges accessing cloud resources.Vendor lock-in: Switching between cloud providers can be difficult and expensive due to proprietary technologies and data formats. Organizations may become dependent on specific platforms, limiting their flexibility to negotiate pricing or change services. Migration costs and technical complexity often discourage switching providers.Limited customization: Cloud services offer standardized solutions that may not meet specific business requirements. Organizations can't modify underlying infrastructure or install custom software configurations. This restriction can force businesses to adapt their processes to fit the cloud platform's limitations.Ongoing costs: Monthly subscription fees can accumulate to exceed traditional on-premise infrastructure costs over time. Unexpected usage spikes or data transfer charges can lead to budget overruns. Organizations lose the asset value that comes with owning physical hardware.Performance variability: Shared cloud resources can experience slower performance during peak usage periods. Network latency affects applications requiring real-time processing or frequent data transfers. Organizations can't guarantee consistent performance levels for mission-critical applications.Compliance complexity: Meeting regulatory requirements becomes more challenging when data is stored across multiple locations. Organizations must verify that cloud providers meet industry-specific compliance standards. Audit trails and data governance become shared responsibilities that require careful coordination.Gcore Edge CloudWhen building AI applications that require serious computational power, the infrastructure you choose can make or break your project's success. Whether you're training large language models, running complex inference workloads, or tackling high-performance computing challenges, having access to the latest GPU technology without performance bottlenecks becomes critical.Gcore's AI GPU Cloud Infrastructure addresses these demanding requirements with bare metal NVIDIA H200. H100. A100. L40S, and GB200 GPUs, delivering zero virtualization overhead for maximum performance. The platform's ultra-fast InfiniBand networking and multi-GPU cluster support make it particularly well-suited for distributed training and large-scale AI workloads, starting from just €1.25/hour. Multi-instance GPU (MIG) support also allows you to improve resource allocation and costs for smaller inference tasks.Discover how Gcore's bare metal GPU performance can accelerate your AI training and inference workloads at https://gcore.com/gpu-cloud.Frequently asked questionsPeople often have questions about cloud computing basics, costs, and how it fits their specific needs. These answers cover the key service models, use options, and practical considerations that help clarify what cloud computing can do for your organization.What's the difference between cloud computing and traditional hosting?Cloud computing delivers resources over the internet on demand, while traditional hosting provides fixed server resources at dedicated locations. Cloud offers elastic growth and pay-as-you-go pricing, whereas traditional hosting requires upfront capacity planning and fixed costs regardless of actual usage.What is cloud computing security?Cloud computing security protects data, applications, and infrastructure in cloud environments through shared responsibility models between providers and users. Cloud providers secure the underlying infrastructure while users protect their data, applications, and access controls.What is virtualization in cloud computing?Virtualization in cloud computing creates multiple virtual machines (VMs) on a single physical server using hypervisor software that separates computing resources. This technology allows cloud providers to increase hardware effectiveness and offer flexible, isolated environments to multiple users simultaneously.Is cloud computing secure for business data?Yes, cloud computing is secure for business data when proper security measures are in place, with major providers offering encryption, access controls, and compliance certifications that often exceed what most businesses can achieve on-premises. Cloud service providers typically guarantee 99.9% or higher uptime in service level agreements while maintaining enterprise-grade security standards.How much does cloud computing cost compared to on-premises infrastructure?Cloud computing typically costs 20-40% less than on-premises infrastructure due to shared resources, reduced hardware purchases, and lower maintenance expenses, according to IDC (2024). However, costs vary primarily based on usage patterns, with predictable workloads sometimes being cheaper on-premises while variable workloads benefit more from cloud's pay-as-you-go model.How do I choose between IaaS, PaaS, and SaaS?Choose based on your control needs. IaaS gives you full infrastructure control, PaaS handles infrastructure so you focus on development, and SaaS provides ready-to-use applications with no technical management required.

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