Cloud computing

Cloud computing is a model for delivering IT resources (processing power, memory, databases, software, data storage) over the internet without local infrastructure. Instead of founders installing everything on their computers or personal servers, they “move to the cloud”—using server infrastructure maintained by major providers like Amazon (AWS), Microsoft (Azure), Google (GCP), or others.

Practical example: A startup wants to launch an online store. Instead of buying a physical server, installing Linux, creating a database, and maintaining everything—expensive and complicated—they use AWS. AWS provides everything needed: server, database, storage, without hardware concerns. The startup pays only for what it uses.

Cloud computing advantages for startups: (1) Flexibility—easily scale up or down based on needs; (2) Lower startup costs—no expensive hardware needed; (3) Reliability—major providers have better availability than small startups could achieve; (4) Security—major providers invest millions in security; (5) Automation—providers offer automation tools.

However, cloud computing has drawbacks: (1) Dependency—reliance on providers; if AWS is down, your service is down; (2) Costs—inefficient use results in enormous bills; (3) Data security—what happens to your data when leaving the cloud? (4) Compliance—some regulations (like HIPAA in healthcare) can be difficult in the cloud.

For startups: Cloud is practically mandatory—most modern startups can’t afford not to use it.