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What is cloud storage, and how does it work?

  • By Gcore
  • September 18, 2025
  • 7 min read
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 solution

You 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 solutions

When 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.

Frequently asked questions

What'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.

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