Advantages and Disadvantages of Cloud Computing in Business

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Cloud computing is a shared pool of configurable resources of a computer system which provides a high level of services. The following report aims to investigate the main concept of cloud computing and various types of cloud computing as well as cloud services. Along with this, the main focus of the report is on the advantages and disadvantages of cloud computing in business.  

Cloud computing

Cloud computing delivers a number of services such as servers, databases, storage, analytics, software, networking, intelligence etc. According to (Weins, 2018), cloud computing is an environment where storage and software are provided as internet service and can be accessed through a web browser. Cloud computing is being utilized in a number of small as well as large scale organizations. 92% of the organizations adopt public cloud up from 89% in the year 2017. Whereas the private cloud is adopted by 75% organizations. The percentage of organizations using at least one private or public cloud is 96%.

Types of cloud computing

There are mainly three types of cloud such as the private cloud, public cloud, and hybrid cloud. However, not all the clouds are the same and one type of cloud is right for everyone. Different types of models, services, and types of cloud computing have evolved in order to provide the right solution with respect to the needs of businesses (Azure, 2018).

  1. Public cloud: Public clouds are one which is owned and operated by the third-party cloud service providers. The cloud service providers deliver computing services such as storage and servers over the internet. The example of a public cloud is Microsoft Azure. With the use of the public cloud, all software, hardware and supporting infrastructure is managed and owned by the cloud Any business can access the services with the use of web browser.
  2. Private cloud: A private cloud is the resource of cloud computing which is used by the single A private cloud can be present at the physical location on the on-site data centre of the company. In the public cloud, the infrastructure and services are maintained on the public network and there is a need to pay third party service providers in order to host the private cloud.
  3. Hybrid cloud: Hybrid cloud is the combination of both the private and public cloud which are bound by technology and allows applications and data to be shared between them. Hybrid cloud provides better flexibility to the business by allowing the movement of applications and data between public and private cloud.

Types of cloud services




With IaaS, businesses can rent IT infrastructure like virtual machines and servers.

The on-demand environment for testing, developing, managing, and delivering software applications.

Cloud providers can manage and host software application.

It is the basic layer of computing.

Top of IaaS

A complete package of services.

There is a need for technical knowledge.

Need to get the basic setup.

SaaS providers handle everything.

Deals with virtual machines, networks, servers, and load balancers.

Deals with databases, runtimes applications, web servers.

Deals with applications like email, social networking sites etc.

Popular among highest skilled developers.

Popular among skilled developers.

Popular among normal consumers.

Advantages of cloud computing

There is not any doubt that businesses can get benefit from cloud computing services. Following are the various advantages of cloud computing in business:

  • The most significant benefit of cloud computing is in terms of IT cost savings. With cloud computing, businesses can save their capital cost with the zero in-house application requirements and service storage.
  • Cloud computing is more consistent and reliable with a managed service platform. Most of the service providers offer service level agreements with 99.9% and 24/7/365 availability.
  • Cloud provides the enhanced and simplified IT management as well as maintenance capabilities with central administration.
  • Ever increasing computing services provides a competitive edge over the competitors with nil time of IT procurement.

Disadvantages of cloud computing

  • As the number of clients is taken care of by the clients each day, they may come up against the technical outages and can become overwhelmed.
  • Storing important business-related information on the external service providers opens up risks of security.
  • It may be difficult for businesses to migrate their services from one particular vendor to another.
  • Cloud services are entirely managed, controlled, and owned by service providers that transfer minimal control over the customer and customer cannot control the backend infrastructure.


From the overall report, it can be said that the platform of cloud computing offers a number of advantages in terms of flexibility, storage, services, databases, networking facilities, and less cost to IT infrastructure. However, a number of disadvantages of cloud computing can limit the use of cloud computing in business. Different business adopts different cloud services and cloud platforms with respect to their business requirements.