What is Cloud?
Cloud computing refers to the use of remotely managed servers, storage and applications over the internet, instead of locally (On-Premise) installed systems.
With cloud solutions, organisations no longer need to manage physical infrastructure themselves: they rent capacity and services from a cloud provider such as:
- Microsoft Azure
- Amazon Web Services (AWS)
- Google Cloud Platform (GCP)
🧱 Key characteristics of cloud computing
| Characteristic | Description |
|---|---|
| Externally hosted | Servers and data reside in a provider’s data centres |
| Accessible over the internet | Reachable from any location with network access |
| Scalable | Resources can be scaled up or down automatically |
| Flexible cost model | Pay-as-you-go: paying for use rather than upfront investment |
| Less local maintenance | Updates, backups and security are largely managed externally |
🌐 The cloud in industry
In an industrial context, the cloud can be used for:
- Data storage and analysis (e.g. production or maintenance data)
- Predictive Maintenance with AI/ML algorithms
- Industrial Internet of Things platforms for centralised Monitoring of devices
- SCADA or MES in the cloud (often as a hybrid solution)
- Backup and Disaster Recovery
🔐 Security in the cloud
While cloud providers maintain high security standards, the principle of shared responsibility remains important:
- Encryption of data at rest and in transit
- Authentication (e.g. via Azure Active Directory)
- Network security with Firewalls and VPNs
- Compliance with standards (such as ISO 27001 and IEC 62443)
🔄 Comparison: cloud vs. on-premise
| Aspect | Cloud | On-Premise |
|---|---|---|
| Hosting location | External (cloud provider) | Local, on company premises |
| Cost model | Subscription / usage-based | One-time investment + maintenance |
| Management | Shared or outsourced | Fully in-house |
| Scalability | Flexible, on-demand | Limited and manual |
| Internet required? | Yes | No (works offline as well) |
| Updates | Automatic by provider | Manual by your own team |
| Accessibility | Anywhere via the internet | Only within the internal network |
☁️ Cloud models
| Model | Description |
|---|---|
| IaaS (Infrastructure as a Service) | Virtual servers, storage and networks |
| PaaS (Platform as a Service) | Tools for developing and hosting applications |
| SaaS (Software as a Service) | Fully functioning software (e.g. Office 365, ERP) |
📌 In summary
The cloud provides scalable, flexible and accessible IT capacity over the internet. In industrial environments, cloud computing supports smart factories, the Industrial Internet of Things, remote maintenance and data analytics.