Cloud computing has revolutionized how public administrations and SMEs manage data, applications, and ICT infrastructures. Understanding what cloud computing is, how it originated, and how it works is crucial to seizing the opportunities of the Fourth Industrial Revolution across Europe.
In this article, we’ll provide clear, practical examples of cloud computing in action.
Table of contents
What is cloud computing exactly?
Cloud computing refers to the delivery of computing services (such as servers, storage, applications, and more) over the internet, removing the need for physical infrastructure on-premises. Instead of relying on local data centers, businesses access on-demand IT resources via the web.
According to the National Institute of Standards and Technology (NIST), cloud computing is defined by 4 key characteristics:
- on-demand self-service;
- resource pooling (a method for regularly monitoring resource status);
- network elasticity;
- measurable service usage.
There are 3 main types of cloud computing models:
- public cloud: Services offered by providers like Amazon Web Services (AWS), Microsoft Azure, or Google Cloud, accessible to everyone;
- private cloud: Infrastructure dedicated to a single organization, often for cybersecurity purposes;
- hybrid cloud: a combination of public and private cloud models, offering the advantages of both.
A brief history of cloud computing
The origins of cloud computing trace back to the 1960s, when “time-sharing” on mainframe computers enabled multiple users to access computational resources simultaneously.
However, modern cloud computing didn’t take shape until the early 2000s with the rise of the Internet, broadband connectivity, and virtualization (a technology that creates virtual representations of physical resources, reducing the load on local PCs).
In 2006, Amazon launched AWS, the first large-scale cloud-based service for the public, offering storage and computing power at accessible costs.
Since then, the industry has boomed. According to an IT consulting firm Gartner report, the global cloud market reached $600 billion in 2023 and continues to grow rapidly. The COVID-19 pandemic further accelerated adoption, as businesses embraced remote work models.
What is cloud computing used for? Benefits and use cases
Cloud computing offers multiple benefits to companies and end users, such as:
1. Data backup
One of the most common uses is the ability to remotely access and store large amounts of data. Dropbox, for instance, provides cloud storage and synchronization services to millions of users.
2. App development
Platforms like Microsoft Azure allow developers to build, test, and deploy applications at scale—without managing physical servers.
3. Big data analytics
Cloud computing supports big data processing. Netflix, for example, uses AWS to analyze user preferences and personalize recommendations.
4. Security
Cloud providers implement cutting-edge tools to protect data, such as end-to-end encryption.
5. Scalability
Companies can scale cloud resources up or down depending on their needs, optimizing costs. For instance, during Black Friday, retailers like Zalando rely on cloud-based services to manage traffic surges.
Real-world examples of cloud computing
- Amazon Web Services (AWS): used by Airbnb and Spotify to host applications and manage vast data volumes.
- Google Cloud Platform (GCP): Powers services like YouTube and provides advanced tools for integrating AI and machine learning.
- Microsoft Azure: Trusted by both public and private entities, including the UK government, to modernize digital services.
Within the European Union, cloud computing plays a central role in the GAIA-X project—an initiative aimed at building a sovereign, cross-border cloud infrastructure that ensures cybersecurity and data protection for member States.
Opportunities for businesses: partner with PMF Research
PMF Research is actively involved in research and development (R&D) projects based on cloud computing solutions. We are currently seeking partners interested in participating in European calls for proposals focused on cloud computing.
Whether you are a company, research center, or startup, contact us today. You’ll benefit from our 20+ years of experience in EU project design and gain access to a pan-European innovation network. Let’s work together!
