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What Is Cloud Networking? Definition, Types & Benefits – Forbes Advisor






































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Published: Sep 13, 2023, 12:00pm

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These days almost every business relies on the cloud to some capacity. Cloud networking is scalable and flexible. It allows organizations to increase their infrastructure according to changing demands. Cloud networking also saves costs, as companies only pay for the services they use as they go. This article covers the terms cloud networking and cloud computing, the various types and the benefits of this technology for small and medium businesses.

Cloud Networking Defined

Cloud networking is an element of cloud computing and refers to the way the networking infrastructure works within it.

Cloud computing has revolutionized the way companies run, making it easier, faster and cheaper to complete functions that previously required a company to have its own data center. Almost every type of business today uses cloud computing for a wide range of purposes, including data backup, email and customer-facing web applications.

Cloud computing refers to the on-demand delivery of IT products online, which enables businesses to access databases, power and storage through the cloud, instead of through a physical data center. Microsoft Azure and Amazon Web Services (AWS) are the two main cloud service providers.

Examples of cloud services include:

  • Software as a Service (SaaS), which gives companies access to applications as a subscription.
  • Infrastructure as a Service (IaaS), which provides virtual computers over the internet, including virtual machines, networks, computers and other resources.
  • Platform as a Service (PaaS), which makes it possible to develop and run applications without the complexity of infrastructure management.
  • Machine Learning as a Service (MLaaS), which offers cloud-based platforms and APIs that enable developers to build, train and deploy machine learning models.

Cloud networking capabilities are provided by the cloud service providers.


Types of Cloud Networking

There are various types of cloud networking. Here are the main ones:

Public Cloud

A public cloud means that the servers are being shared by other people. You might think of a public cloud as similar to a public swimming pool. This type of cloud is adjustable to different capacities of a company’s IT department. Multiple users may be using a public cloud but will all be able to benefit from the service.

Virtual Private Cloud (VPC)

While a public cloud is like sharing a pool, a virtual private cloud (VPC) is more like putting a rope around the pool and creating a private area. Companies can choose to build their own private cloud within a public cloud. Increased security is the main reason a company would choose a VPC.

Hybrid Cloud

Hybrid cloud refers to the combination of public clouds and VPCs. The term hybrid cloud network is also used to refer to the connection between a physical data center and a public cloud.

Multicloud

The term multicloud refers to using more than one cloud provider. For example, a company might choose to use services both from AWS and Microsoft Azure. While they both offer cloud computing, they do have differences. A company may find the differences between the two providers make it worth it to use both.


Who Uses Cloud Networking?

All sorts of businesses use cloud networking for a range of reasons. The capabilities are endless and the use of cloud networks is only expected to grow in the coming years. Essentially, the cloud gives companies capabilities, storage and infrastructure to build and develop in a way that was not previously possible.

Small and medium businesses from a wide range of industries are able to benefit from the use of cloud networking. Here are a few examples of how cloud networking can be used:

  • Remote teams: Remote teams use cloud networking to easily and effectively collaborate. With cloud networking, teams can have shared access to the same resources, applications and data, making it easy to work on a shared project and communicate updates.
  • Healthcare providers: Cloud networking allows healthcare companies to store a large amount of patient data between different providers in a way that is secure and compliant.
  • Retail and e-commerce: Cloud networking enables retail and e-commerce providers to handle inventory, shipping and customer service at scale. It enables companies to automate specific tasks as well as increase their network capacity with more traffic and grow at scale.
  • Education: Schools and universities use cloud networking to secure online education resources, enable remote learning and make it easy for students and teachers to communicate online.
  • Startups and new businesses: Startups can use cloud networking to rapidly scale their services. Because you pay as you go with cloud networking, a startup company can save costs and only pay for what it needs.


Cloud Networking vs. Cloud Computing

Cloud computing refers to delivering cloud services over the internet and the on-demand delivery of IT products online, which enables businesses to access databases, power and storage through the cloud. Cloud networking refers to the connection between the different devices required for cloud computing. Though these terms are distinct, they are often used interchangeably.


Benefits of Cloud Networking

There are countless benefits to using cloud technology. The main benefits of cloud networking include:

  • Scalability and flexibility: Cloud networking allows companies to adjust to changing demands in their businesses without the limitations of physical hardware. This can be especially beneficial for companies that have seasonal traffic or for emerging companies that are planning to scale quickly. For example, an e-commerce company might plan for increased traffic during the holiday season, and expand capabilities for the month of December and then reduce capacity once the rush dies down. The whole system can grow and shrink as the demand goes up and down. This pay-as-you-go model is also cost-efficient for many small and medium businesses.
  • Cost-efficiency and lower operating costs: Cloud networking allows business owners to pay as they go. Instead of being required to purchase all the technology necessary to run a business, cloud networking allows companies to only purchase what they need and to adjust to increased demand as needed. For example, an e-commerce business with a rush of customers during the holidays can increase its capacity to handle the rush of traffic during December, and then reduce its capacity when the rush dies down.
  • Mobility: Cloud networking gives a company and its teams access to data and applications from anywhere, at all times, as long as they are connected to the internet.
  • Reduced downtime: Cloud providers handle updates to the cloud, which means that the process doesn’t fall on individual companies and does not have to bring down a whole system.


Getting Started With Cloud Networking

The first steps to creating a cloud network include familiarizing yourself with cloud networking concepts, developing a network architecture plan and choosing a cloud provider. Amazon Web Services and Azure are the two most popular providers. You’ll want to consult with the cloud provider for a full set of instructions on how to create a cloud network. Amazon Web Services has extensive online video tutorials that can help with the process.


Bottom Line

Cloud technology has revolutionized the way companies run. The cloud has opened up endless possibilities for small and medium businesses, making it faster and more affordable to fulfill tasks, scale, keep track of large sets of data and communicate and collaborate remotely. Almost every type of business uses cloud computing today, from working on shared documents that are stored on the cloud, to hosting customer-facing web applications. There are many benefits of cloud networking, including scalability, flexibility, mobility and reduced operating costs.


Frequently Asked Questions (FAQs)

Why use cloud networking?

There are plenty of reasons to use cloud networking and these days almost every business relies on the cloud to some capacity. Cloud networking is scalable and flexible. It allows organizations to increase their infrastructure according to changing demands. Cloud networking also saves costs, as companies only pay for the services they use as they go. In addition, cloud networking also offers increased security for businesses that don’t have the capacity to run an entire cybersecurity team in-house.

What is an example of a cloud network?

The Virtual Private Cloud (VPC) of Amazon Web Services (AWS) is an example of a cloud network. AWS VPC enables users to create a private cloud within the AWS cloud, which increases the security.

How do I create a cloud network?

The first steps to creating a cloud network include familiarizing yourself with cloud networking concepts, developing a network architecture plan and choosing a cloud provider. Amazon Web Services and Azure are the two most popular providers. You’ll want to consult with the cloud provider for a full set of instructions on how to create a cloud network. Amazon Web Services has extensive online video tutorials that can help with the process.

Is cloud networking a good career choice?

Because almost every company today uses cloud computing, expertise in cloud technologies is in high demand. There are plenty of career paths to choose from in this field such as cloud architect, cloud engineer, cloud consultant and DevOps engineer. These jobs are intellectually challenging and offer high earning potential in a field with growing demand.

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Leeron Hoory

Leeron is a New York-based writer with experience covering technology and politics. Her work has appeared in publications such as Quartz, the Village Voice, Gothamist, and Slate.

Kiran Aditham

For over 15 years, Kiran has served as an editor, writer and reporter for publications covering fields including advertising, technology, business, entertainment and new media.He has served as a reporter for AdAge/Creativity and spent several years as an edito and writer at Adweek. Along the way, he has also served in managing editor roles at the likes of PSFK and Ladders, worked in PR as a director of content, and most recently served as a Senior Editor at Dotdash Meredith for personal finance brand The Balance and then Entertainment Weekly. At Forbes Advisor, Kiran brings his experience and expertise to reinforce the brand’s reputation as the most informative, accessible and trusted resource in small business.

Matt Hoeper

Matt is a proven leader in IT, combining a master’s degree in Management Information Systems and solid experience with a proven track record in IT, leading business initiatives to help organizations meet their goals. He has led the security practices at 2 different MSPs, been a Health IT Director, a project manager, business analyst, system administrator, systems architect…if it has to do with IT, he’s probably done it. He helped author the CMMC Certified Professional and CMMC Certified Assessor field guides and has spoken at conferences all over the country regarding CMMC, IT security, risk. Matt has worked with Fortune 500 companies and small businesses, in areas ranging from engineering to marketing and supply chain to health care.

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