How does cloud storage work?

From documents to music, movies, games, and websites, any data you access must first be stored somewhere, then retrieved from that place for your consumption.

On your PC, files are stored on a local hard disk from which you can instantly retrieve them. The hard disk converts data into bits (1s and 0s) and stores them electronically.

When you visit a website or open an app, the data is similarly stored on physical hardware. In this case, the data is stored on a network of interconnected servers housed in data centers. You can access endless files online because of data centers that run around the clock. Cloud storage providers operate these data centers.

“Cloud” is an analogy for the real clouds above us, which remain present even as you move around. The data is stored on real servers in specific locations, but you can access it anywhere via the internet.

Amazon Web Services, Google Cloud, and Microsoft Azure are the most prominent cloud storage providers. They operate massive data centers worldwide to enable seamless data access. Many smaller cloud storage providers also exist, and software companies have leveraged their infrastructure to offer many cloud-based services.

For example, you can use Google Drive to store large files and share them with friends, family, and colleagues. You can use Microsoft Teams to videoconference and chat with colleagues, Notion to take notes, and YouTube to stream videos endlessly. These are examples of services made possible by cloud storage providers.

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How does cloud storage work?

When you upload a file online, it’s sent to a remote server via the internet. The file may be split into smaller units for storage efficiency. Any data uploaded is encrypted in transit to prevent interference from unauthorized third parties. You can access this file (a photo, video, document, etc.) whenever you need to.

Cloud storage providers often store multiple copies of your data across different data centers. This distributed storage guarantees that you’ll have access to your file if one server fails.

Cloud storage for businesses

For businesses dealing with large files, cloud storage takes several forms:

Public

In this model, a business relies entirely on a cloud storage provider's data centers. These data centers are also shared by other businesses that pay a fixed or varying fee to store and access their files. For example, a company can use Google Drive to store its files and pay for specific storage volumes (100 GB, 200 GB, or 2 TB).

Private

Private cloud storage is when an organization maintains its own servers to store files remotely. The files can be accessed online, but the physical servers are maintained by the company instead of being outsourced to a third-party cloud storage provider. This model is often used by large companies dealing with sensitive files that they want strict control over.

Hybrid

Hybrid combines both public and private models, e.g., everyday data stored on a public cloud storage platform and sensitive credentials stored on in-house servers. This model lets organizations decide which data they're comfortable with storing on third-party services and which they want to safeguard on private servers. It's a flexible model that allows companies to switch between public and private cloud storage as they deem necessary.

Benefits of cloud storage

Scalability

Scalability is the primary benefit of cloud storage, whether for individual or business use. If you need more storage space, your cloud provider already has the infrastructure, so you just need to pay for the required space and upload your files. You can start with a basic plan and upgrade to higher plans as your business grows and requires more cloud storage. You have no worries about buying or renting more servers to cater to extra files, as a public cloud storage provider already handles that.

Budget-friendliness

Public cloud storage is a budget-friendly option for small and mid-sized businesses. At this stage, maintaining in-house servers and an IT team to manage these servers is financially strenuous. Instead, you can choose any public cloud storage provider, pay for the required space, and upload files on the go.

Cloud storage providers charge based on the volume of space. You’ll pay a monthly or annual fee for specific storage space (e.g., 1 TB) and can upgrade anytime.

Enhanced security

Cloud storage providers don’t just store files. They take rigorous steps to secure those files from unauthorized access. These include encryption algorithms, multi-factor authentication, and automated backups to keep files accessible in case of incidents. Most businesses don’t have the resources to implement top-notch security, so outsourcing it to a third party is a good option.

Collaboration & accessibility

Cloud storage enables data access from any location, fostering collaboration among workforces. Teams can work conveniently despite being physically distant. Cloud storage is inseparable from the rise of remote workforces worldwide. From real-time document editing to codebase collaboration and videoconferencing, cloud storage encourages productivity among teams.