Cloud computing

Cloud-based computing is an on-demand delivery of computing resources — such as storage, processing power and networking — over the internet. It enables organizations to scale operations, reduce infrastructure costs and accelerate innovation by accessing data and applications remotely.

Today, an estimated 94%¹ of enterprises rely on cloud computing to power everything from mobile apps to global collaboration platforms1. Whether backing up photos or deploying AI models, cloud computing has become foundational to modern digital life.

Micron’s advanced memory and storage technologies are critical to this transformation, enabling faster access, lower latency and greater efficiency across cloud infrastructure, from hyperscale data centers to edge environments.

Learn more about cloud computing, or contact our Sales Support team to find out more about Micron.

What is cloud computing?

Cloud computing definition: Cloud computing is an on-demand service that provides access to computing resources remotely via the internet.

Cloud computing resources include data storage, processing power and software applications. Instead of relying on local servers or personal devices, cloud computing enables organizations and individuals to tap into powerful infrastructure hosted by third-party providers.

Cloud computing relies on data center infrastructure and power, which allows users to access what they need from the cloud without investing in standalone resources. While data centers house the servers, storage and networking equipment, cloud computing abstracts these resources into virtual services accessible over the internet. In this way, cloud computing is the interface and data centers are the engines.

​There are a handful of cloud deployment models that denote how the cloud is hosted. These are distinct from cloud service models — infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) — which instead denote what you consume from the cloud.

Cloud deployment models define the structure and operation of cloud computing. Cloud computing solutions can be deployed in several ways depending on ownership and control:

• Public cloud: Shared infrastructure that offers pay-as-you-go, shared resources managed by a provider, ideal for scalability and cost efficiency.
• Private cloud: Dedicated infrastructure managed internally or by a third-party for a single organization, offering more control and security.
• Hybrid cloud: A mix of public and private clouds, allowing data and applications to move between environments for flexibility and workload optimization.

How does cloud computing work?

Cloud computing relies on remote data centers and networks managed by cloud service providers such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform. These providers host virtualized computing environments that users access via secure internet connections.

Key aspects include:

• Virtualization: Process that enables multiple virtual machines to run on a single physical server. Virtualization abstracts hardware resources into software-defined environments, enabling efficient resource utilization and isolation between workloads.
• Central servers: Core systems that manage communication between devices and cloud infrastructure. These servers coordinate resource allocation, authentication and data flow across distributed environments.
• Cloud security: Measures that protect data in motion and data at rest within cloud environments. Cloud security measures include encryption, firewalls and identity access management to safeguard sensitive information.

What is the history of cloud computing?

Cloud computing is not new. It has evolved over decades, shaped by breakthroughs in hardware, networking and virtualization. Here’s a timeline of key milestones:

• 1960s, mainframe terminals: IBM and MIT pioneered multi-terminal systems that connected users to centralized mainframes, which was an early precursor to today’s cloud architecture.
• 1970s, virtualization and personal computing: The rise of personal computers and virtualization technologies like IBM System/370 introduced virtual memory and multiple virtual machines. This laid the foundation for resource sharing and cloud computing.
• 1980s, client-server architecture: Client-server models enabled scalable computing by allowing client machines to request services from centralized servers. This is a concept that underpins modern cloud scalability.
• 1990s, internet adoption: Widespread adoption of the internet provided the connectivity needed for cloud computing to operate globally, accelerating distributed computing capabilities.
• 2000s, cloud service providers emerge: Amazon Web Services, Microsoft Azure and Google Cloud launched platforms that made cloud infrastructure widely available and easy to use, transforming how businesses manage IT.
• 2020s, remote work and digital transformation: The COVID-19 pandemic and global digital transformation drove massive cloud adoption, enabling remote collaboration, virtual workspaces and scalable enterprise solutions.

What are the three cloud computing service models?

The three main types of cloud computing service models form the backbone of modern IT. Each offers different levels of flexibility, control and management.

Infrastructure as a service

​Infrastructure as a service is the foundation of cloud computing, offering organizations virtual machines, storage and networking on a pay-as-you-go basis. IaaS allows organizations to scale and organize resources in a way that suits their project needs, making it a flexible solution.

IaaS is often used for hosting websites, running enterprise applications and supporting internet of things (IoT) systems that need flexible infrastructure for data processing. It is a cost-effective way for organizations to choose how much computing resources they need based on their particular budget and requirements. Businesses choose how much capacity they need and can scale up or down without buying physical hardware.

Platform as a service

​Platform as a service is a model of cloud computing that offers developers a space to build, test and deploy applications without managing servers and storage or overloading in-house infrastructure. The infrastructure and software are ready for use — developers can focus on creating applications without worrying about maintenance.

This streamlines workflows and accelerates development. Many IoT solutions also rely on PaaS for creating apps that connect devices and analyze sensor data.

Software as a service

​Software as a service is a cloud computing model that delivers fully managed software applications over the internet, requiring no installation and no manual updates. Businesses often use SaaS for tools like email and document editing, while individuals rely on it for streaming movies, music and other entertainment.

Many IoT devices, such as smart home systems or connected sensors, also use SaaS platforms to share data and provide services. The biggest advantages are that everything is managed in one place, updates happen automatically and users can access the software from any device, whether it’s a laptop, tablet or phone.

How is cloud computing used?

Cloud computing underpins modern business operations by delivering flexible, on-demand resources that reduce infrastructure costs and accelerate innovation. Its applications span storage, analytics, collaboration and development environments, all optimized for scalability and performance.

Cloud computing enables:

• Scalable (elastic) data storage and backup storage capacity that grows or shrinks based on demand. Businesses avoid overprovisioning physical hardware by leveraging cloud-based storage tiers.
• Real-time analytics and business insights that allow processing of large datasets instantly to extract actionable insights. Cloud platforms integrate analytics engines that run on distributed compute resources for rapid decision-making.
• Remote collaboration and virtual workspace tools that enable teams to work together from any location. Cloud-hosted applications like document editors and video conferencing platforms eliminate geographic barriers.
• Application development and testing environments for building, testing and deploying applications. Developers leverage PaaS environments to streamline workflows without managing physical infrastructure.

Micron’s memory and storage technologies support these use cases by enhancing performance, reliability and scalability.

¹ Source: Datastackhub, “Cloud Adoption Rate Statistics for 2025–2026.” https://www.datastackhub.com/insights/cloud-adoption-rate-statistics/ [datastackhub.com]