1.2. What is Cloud Computing?

At its core, cloud computing is about delivering computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet ("the cloud"). Think of it like a utility: just as you don't build a power plant to get electricity, you don't need to build a data center to get computing power. Without cloud computing, organizations must predict capacity months in advance, buy expensive hardware, and maintain it indefinitely — even when demand drops and servers sit idle.

💡 First Principle: The First Principle of cloud computing is on-demand access to shared, scalable computing resources over the internet, transforming IT from a capital expense to an operational one. This fundamental shift allows businesses to access computing power as a utility, paying only for what they use.

Scenario: A company is considering moving away from owning and maintaining its own servers and data centers. They are exploring "cloud computing."

Reflection Question: How does cloud computing, by providing on-demand access to shared computing resources over the internet, fundamentally transform IT from a large upfront capital expense to a more flexible, pay-as-you-go operational expense?