What is cloud data and how does it work?

15.04.2025

cloud storage

 

Every day, the Internet generates 328 million terabytes of information that needs to be stored. Physical media are expensive and often unreliable, so information is trying to be sent to the cloud. Gradually, with each passing year, cloud data is becoming the foundation of the digital economy.

What is cloud data?

It’s not just remote servers. It is an ecosystem where information becomes a dynamic resource available online.

Cloud data: definition and basic concepts

Cloud data is information that is stored, managed and processed on remote servers (in the cloud) accessible via the internet. Such storage does not require the purchase of physical hardware and can scale according to business needs.

The main “highlight” of any cloud service is the centralization of information resources. After all, what is cloud data? The cloud is a unified infrastructure that combines storage and information. Main features:

  • Accessibility from anywhere with an Internet connection.
  • Scalability of resources according to needs.
  • Fault tolerance and reliability.
  • Payment only for the resources used.

By choosing the cloud, a company optimizes IT infrastructure costs and meets the requirements of the digital age.

Main types of cloud data storage

Cloud data storage is based on 3 architectural models:

  • Data Lake;
  • Data Warehouse;
  • Data Mesh.

Data Lake stores information “as is”, in its original format. It is used for Big Data and machine learning projects. Warehouse is a solution for business intelligence and reporting.

The alternative is hybrid models. They combine clouds and local “hardware”.

How does cloud data work?

It’s based on a distributed architecture. It sounds complicated, but in fact it’s simple: servers can be located in geographically separated places in the world, but logically united into a single network. How does cloud data work? First, it is transmitted through secure channels (via API or web interface) to the cloud. It is then automatically allocated according to backup policies and scaled as the volume increases. As a result, users access information via web applications or software APIs. In the latter case, large amounts of information can be processed without downloading.

Benefits of cloud storage

According to research, 82% of companies reduced IT costs by 30% after migrating to the cloud. Let’s take a look at the benefits of this method of data storage.

Accessibility and convenience of working with cloud data

Clouds are accessible worldwide from Windows, Android or iOS devices. This mobility is important for the technicality of remote working. A cloud database offers the following advantages in terms of accessibility:

  • Geographic independence – access is possible from anywhere with an internet connection.
  • Multi-platform – data can be accessed from multiple devices (PCs, tablets, smartphones).
  • Collaboration – users can work with the same data at the same time.
  • Instant access – as Amazon notes, cloud solutions provide “instant data retrieval,” which is critical for rapid decision-making.

In addition, cloud storage eliminates the fragmentation of information that characterizes traditional solutions. As AWS states, “Employees from geographically dispersed departments benefit from a unified information structure.”

Security and Data Protection in the Cloud

Today’s cloud data offers a better level of protection than on-premises hardware. Cloud providers invest in security infrastructure and regulatory compliance. Information security in the cloud is based on:

  • encryption;
  • multi-factor authentication;
  • regular backups;
  • auditing and monitoring.

When working with clouds, do not neglect additional means of protection, for example, mobile proxies. And use a special tool – proxy checker – for verification.

Save time and resources

Moving to the cloud brings cost savings to companies. First, you don’t need to buy expensive servers and storage systems. For example, Uber uses cloud data for route analysis, avoiding the cost of maintaining its own data centers.

Second, you pay for what you use. For example, Amazon’s S3 Glacier Deep Archive service offers archival storage for $0.00099 per GB/month – that’s 4 times cheaper than maintaining the same amount on local tape drives (AWS, 2025).

In addition, there are no server maintenance costs – electricity, space cooling, and rent. These are all “headaches” for the provider.

The retailer reduced IT costs by 32% after migrating to Microsoft Azure, redirecting the savings to implement AI analytics.

облачная база данных

Cloud data storage: usage scenarios

Cloud databases are being used extensively by businesses, users and academics. Let’s take a closer look at their uses.

Cloud database for business

Companies use clouds to store data in:

  • CRM and ERP systems;
  • e-commerce;
  • business analytics.

Salesforce uses the cloud to analyze 150+ million customer profiles online – increasing conversion rates by 27%. Shopify processes 10,000 transactions per minute on Black Friday through AWS DynamoDB distributed databases and reduces latency to 15ms. Starbucks predicts demand with 92% accuracy by analyzing data from 34,000 stores in Google BigQuery.

When working with cloud databases, there is a need to bypass geographical limitations. We recommend mobile data proxies. Using them in projects, you will simplify access to data, bypass blockages and protect the confidentiality of information. The basis of this LTESocks service is SIM card hosting. IPs provided to clients are defined by Internet services as physical devices.

Personal Cloud Storage

In addition to business applications, cloud data storage is used by private users to:

  • back up;
  • synchronize information;
  • share;
  • store multimedia data.

Cloud data storage is a service that accompanies internet connectivity. We recommend using Google Drive, Dropbox and OneDrive or other services. Their basic functions are free of charge.

Innovating with cloud data in science and analytics

Cloud data opens up new opportunities for scientific research and analytics through access to the necessary computational resources. Areas where cloud services are being used in science:

  • genomic research;
  • climate modeling;
  • machine learning;
  • IoT data processing.

AWS emphasizes: “Using cloud storage, you process, store and analyze information close to the location of your applications, and then copy the data to the cloud for further analysis.”

cloud storage

Major Cloud Storage Providers

Three companies stand out in the market:

1

AWS – business-oriented, scalable storage and managed databases;

2

Google Cloud – versatility, analytics tools;

3

IBM Cloud – storing unstructured data in SQL and NoSQL databases.

 

Often companies store documents in the cloud with different providers. This makes the IT infrastructure “unbreakable”.

How do I choose a cloud storage solution?

The choice of cloud directly affects the security and efficiency of the business. When choosing a service, pay attention to such parameters:

  • Security – the service should support encryption, 2-factor authentication, backup.
  • Scalability – it should be possible to purchase hardware or give up part of the resources.
  • Performance – the speed of access is important.
  • Cost – choose a provider with “transparent” tariffs without hidden fees.
  • Compatibility – it is important that the service has API support.

These benchmarks will help you choose a storage that meets your needs and guarantees normal work with information.

Conclusion: why cloud data is the future?

Clouds are no longer a fashion trend, but a format for storing and processing information. How will they evolve? Towards merging with artificial intelligence, the internet of things and edge computing. Companies that use cloud technologies grow faster and adapt better to crises. Why don’t you start your own cloud?

Read next

All article