What is the cloud? | CNBC Explains

Summary

This video script explores the concept of cloud computing, illustrating how it operates as a global network of servers functioning like a massive hard drive. It discusses the convenience of cloud services for consumers, allowing data access anytime, anywhere, and the significant benefits for businesses, including scalability and cost-effectiveness. The script also highlights major players like Amazon Web Services and Microsoft Azure, and addresses potential risks such as internet outages and cyber attacks, emphasizing the importance of considering these factors in the cloud computing landscape.

Takeaways

• 🌐 The cloud is a global network of servers that function as a collective massive hard drive.
• 📂 Services like Gmail, Netflix, and Dropbox utilize cloud technology for data storage and access.
• 🔄 Cloud computing allows for data backup, replacing traditional methods like CD-ROMs and local hard drives.
• 📱 Devices like iPhones can back up data to cloud servers, ensuring data is not lost even if the device is damaged or lost.
• 🌍 Cloud services provide access to data from anywhere with an internet connection, offering convenience and peace of mind.
• 💾 Consumers benefit from not having to purchase devices with large local storage capacities, reducing costs.
• 💼 Businesses are significantly benefiting from cloud computing, with a projected global revenue exceeding $200 billion in 2019.
• 🔝 Major players in the cloud market include Amazon Web Services (AWS), Microsoft Azure, IBM, Google, and Alibaba.
• 💼 Smaller companies are also leveraging cloud services to grow their businesses without the need for substantial hardware investments.
• 💵 Cloud services often operate on a subscription model, allowing customers to scale their usage and costs as needed.
• ⚠️ Risks associated with cloud computing include internet outages, cyber attacks, and the difficulty of switching between cloud providers.

Q & A

What is the cloud in the context of computing?

The cloud refers to a global network of servers that act as a massive hard drive, allowing users to store and access data over the internet.

How does cloud computing enable access to data?

Cloud computing allows users to access their data anytime, anywhere, as long as they are connected to the internet, providing convenience and flexibility.

What are some common services that utilize cloud computing?

Common services that use cloud computing include Gmail, Netflix, and Dropbox, where users can store and access their data through the cloud.

How does backing up data to the cloud differ from traditional methods like CDs or hard drives?

Backing up to the cloud involves sending data to remote servers, which can be accessed from anywhere with internet, unlike CDs or hard drives that require physical access.

What are the benefits of using cloud services for consumers?

Consumer benefits include peace of mind for data loss, accessibility from any location with internet, and reduced need for large local storage, potentially lowering device costs.

What is the estimated worldwide revenue from cloud computing in 2019?

The estimated worldwide revenue from cloud computing in 2019 was over $200 billion, showing significant growth from $145 billion just two years prior.

Which companies are major players in the cloud services market?

Major players in the cloud services market include Amazon Web Services (AWS), Microsoft Azure, IBM, Google, and Alibaba.

How do smaller companies benefit from cloud computing?

Smaller companies benefit by not having to invest in expensive hardware for data backup, and they can store and access unlimited data online, often on a subscription basis.

What is the subscription pricing model for cloud services?

The subscription pricing model allows customers to pay a monthly fee for cloud services and scale their usage up or down as needed, providing flexibility.

What are some risks associated with storing data in the cloud?

Risks include data loss during internet outages, the threat of cyber attacks, and the difficulty of switching between different cloud providers due to compatibility issues.

Why might large cloud companies have significant power over user data?

Large cloud companies may have significant power over user data because of the difficulty users face in syncing accounts across different cloud platforms, leading to a reliance on a single provider.

Outlines

00:00

🌤️ Understanding Cloud Computing

The paragraph introduces the concept of cloud computing, explaining it as a global network of servers that function as a massive hard drive. It clarifies that while data is not stored in the sky, the term 'cloud' is used metaphorically to describe the remote servers that store and manage data. Examples of cloud services include Gmail, Netflix, and Dropbox. The paragraph also contrasts the traditional method of data backup on physical devices like CD-ROMs or hard drives with the modern approach of cloud backup, which allows for data access from anywhere with an internet connection. The benefits for consumers include peace of mind, accessibility, and reduced need for local storage, potentially lowering device costs. Businesses also benefit from cloud computing, with a significant increase in revenue from cloud services. Major players in the market include Amazon Web Services (AWS), Microsoft Azure, IBM, Google, and Alibaba. The paragraph concludes by discussing the subscription-based pricing model of cloud services and the substantial revenue generated by AWS for Amazon.

Keywords

💡Cloud Computing

Cloud computing refers to the delivery of computing services, including servers, storage, databases, networking, software, analytics, and intelligence, over the Internet (the cloud) to offer faster innovation, flexible resources, and economies of scale. In the video, cloud computing is likened to a global network of servers acting as a massive hard drive, which is used for various services like Gmail, Netflix, and Dropbox. It allows users to access their data from anywhere with an internet connection and provides businesses with scalable solutions for data storage and management.

💡Data Backup

Data backup involves making copies of data to protect against data loss due to hardware or software failure, accidental deletion, or malicious attacks. In the context of the video, backing up data to the cloud means that files are sent to remote servers, ensuring that even if a device is lost or damaged, the data is not permanently lost. This is exemplified by the mention of backing up an iPhone to Apple's data centers.

💡Servers

Servers are computer systems or devices that provide services or data to other computers or devices, known as clients. In the video, servers are part of the cloud infrastructure, housing data and applications that users access over the internet. The script mentions that every time a user signs into a service like Gmail or Netflix, they are using cloud servers.

💡Cloud Storage

Cloud storage allows users and enterprises to store and manage data remotely on servers hosted by cloud computing providers. The video explains that cloud storage is an alternative to local data storage on devices like hard drives or CDs. It provides the convenience of accessing data from any location with internet access and offers virtually unlimited storage capacity.

💡Subscription Pricing Model

A subscription pricing model is a recurring payment structure where customers pay a regular fee, typically monthly or annually, to access a service or product. In the video, this model is applied to cloud services, allowing customers to pay a set fee for access to cloud storage and computing resources, with the flexibility to adjust their usage and payment according to their needs.

💡Amazon Web Services (AWS)

Amazon Web Services, or AWS, is a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a subscription basis. The video positions AWS as one of the biggest names in the cloud computing market, generating significant revenue and operating income for Amazon.

💡Microsoft Azure

Microsoft Azure, often referred to as Azure, is a cloud computing service created by Microsoft for building, testing, deploying, and managing applications and services through Microsoft-managed data centers. The video mentions Azure as a major player in the cloud services market, competing with AWS.

💡Cyber Attacks

Cyber attacks are attempts to gain unauthorized access to digital systems to steal, change, or delete sensitive information. The video highlights the risk of cyber attacks as a concern with cloud computing, noting that a significant portion of files in the cloud may contain sensitive data, which could be targeted.

💡Internet Outage

An internet outage refers to a disruption of internet connectivity, which can result in the temporary or permanent loss of access to online services. The video discusses the impact of an AWS outage in 2013 that affected services like Instagram, Vine, and Airbnb, illustrating the dependency of cloud services on stable internet connectivity.

💡Data Synchronization

Data synchronization is the process of updating and unifying data across different systems or devices. In the video, the concept is mentioned in the context of the challenges consumers might face when trying to sync data across different cloud platforms, such as iCloud and Google Drive, which could be difficult due to differences in compatibility and data management systems.

💡Big Tech

Big Tech refers to the largest technology companies that have extensive influence through their widespread use and extensive customer bases. The video discusses how not only big tech companies like Amazon and Microsoft are involved in cloud computing but also smaller companies are leveraging cloud services to grow their businesses.

Highlights

Cloud computing is a global network of servers acting as one massive hard drive.

Services like Gmail, Netflix, and Dropbox utilize cloud technology.

Cloud allows for backing up data to servers worldwide instead of local devices.

Data on the cloud can be accessed anywhere with an internet connection.

Cloud services reduce the need for large local storage, potentially lowering device costs.

Worldwide revenue from cloud computing is projected to exceed $200 billion in 2019.

Amazon Web Services (AWS) and Microsoft Azure are leading the cloud market.

IBM, Google, and Alibaba are also significant providers of cloud services.

Smaller companies are adopting cloud services to grow their businesses.

Cloud services often operate on a subscription model, allowing scalability.

AWS generates more than half of Amazon’s operating income.

The internet's reliability is a concern for cloud-based data storage.

Cyber attacks pose a risk to sensitive data stored in the cloud.

Switching between cloud service providers can be difficult for users.

Large cloud companies may gain significant control over user data.

Transcripts

Have you ever taken a minute to gaze up at the clouds?

You might see a dog, a dinosaur,

or your data?

Okay, your data isn’t actually stored in a cloud in the sky,

but it’s easy to think so when there’s so much talk about cloud computing.

So how does the cloud work?

The cloud is a global network of servers around the world acting as one massive hard drive.

Every time you sign into your Gmail account, watch a show on Netflix

or open a file from Dropbox, you’re using the cloud.

Before the cloud, you might have backed up your documents, photos or music

to an external device like a CD-ROM or to your computer’s hard drive.

Now, you can back-up all of that information to the cloud.

When I back-up my iPhone to the cloud, my files are sent to servers in Apple’s data centers all around the world.

I can access those servers by connecting to the internet.

So even if I lose or break my phone, not that it’s ever happened before, that data isn't lost forever.

There are a few obvious benefits to consumers from the cloud

besides giving you peace of mind if you lose your phone.

You can access your data anytime, anywhere if you’re connected to the internet.

And you don’t have to worry about using up all of the storage on your hard drive.

Meaning you might not have to pay as much for a device that comes with a ton of storage.

Businesses are also benefiting big time from cloud computing.

It’s estimated worldwide revenue from the cloud will exceed $200 billion in 2019,

that's up from $145 billion just two years ago.

You’ve probably heard of the two biggest names in the market,

Amazon Web Services, known as AWS, and Microsoft Azure.

IBM, Google and Alibaba are also big players when it comes to providing cloud services.

It’s not just big tech moving business into the cloud.

Smaller companies are buying in too as a way to grow their businesses.

Just think, instead of having to buy all of this hardware to backup your data,

you can store an unlimited amount of information online.

Many cloud services are based on a subscription pricing model.

That means customers pay, for example, a monthly fee for cloud services

and they can scale up or down as needed. And cloud providers are cashing in.

AWS accounts for roughly 12 percent of Amazon’s quarterly sales,

but it generates more than half of the company’s operating income.

Before we get too excited about the cloud, let’s take a step back and look at some of the risks.

One obvious concern, if all of our data is online, what happens when the internet goes down?

That’s what happened in 2013 when an AWS outage took down Instagram, Vine and Airbnb.

Cyber attacks are another big risk with research showing

around one-fifth of all files in the cloud contain sensitive data.

Finally, it can be tough for consumers and businesses to switch between different cloud companies.

I might have a hard time syncing my iCloud and Google Drive accounts.

That can give some big companies, that are already making big money on the cloud,

a lot of power over our data.

Hey everyone, it's Elizabeth. Thanks so much for watching.

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