Updated on 10 September 2026. The article now provides a more accurate history of cloud technologies and corrects information about virtualisation, Salesforce, and the launch of AWS. Global public cloud spending statistics have been updated, while categorical claims about security, backup, availability, and guaranteed cost savings have been removed. The article has also been expanded with explanations of the shared responsibility model, the differences between cloud storage and managed databases, the role of cloud computing in different industries, and the criteria for selecting a customised solution.

Most of the digital capabilities we use every day – from streaming films to collaborating on corporate documents – operate with the help of cloud technologies. They provide access to computing resources, storage, software, and other IT tools over a network without requiring companies to purchase and host their own server equipment.

The cloud has become one of the foundations of modern digital infrastructure. It can accelerate access to resources, simplify collaboration, support scaling, and help companies launch new digital products more quickly. However, security, performance, and availability depend not on the mere use of the cloud but on the architecture, configuration, provider terms, and actions taken by the customer.

Today, cloud solutions are integrated into almost every area of life. People store photographs in online storage, communicate through messaging platforms, study, and work in shared digital environments. Companies of different sizes use cloud services to host applications, work with data, automate processes, perform analytics, and build information security systems.

Cloud technologies are not a universal replacement for every type of on-premises infrastructure. They are one way of obtaining and organising IT resources. This article explains which services use cloud technologies, how they developed, the principles on which they operate, and where they are applied in everyday life and business. It also examines the opportunities provided by cloud solutions and the limitations that should be considered before implementation.

The history of cloud technologies

The history of cloud technologies

The foundations of cloud technologies emerged in the 1950s and 1960s, when computing centres began using expensive mainframes. Because these machines were costly, organisations looked for ways to distribute their capacity more efficiently among users. This led to the spread of time-sharing, a model in which several users could work with the same computing system through terminals.

This approach was not cloud computing in the modern sense, but it established the important principle of sharing centralised resources. Users did not need a separate computer for every task. Instead, they received access to the capacity of a large system at a particular time. Similar logic later became part of the cloud computing model.

An important stage in the development of virtualisation did not begin only in the 1970s. The IBM CP-40 and CP-67 research systems were developed during the second half of the 1960s, while their successors continued to evolve throughout the following decade. These systems made it possible to run several isolated virtual machines on a single mainframe. Their development is described in IBM’s official historical materials on CP/CMS and z/VM.

The claim that Microsoft and Apple were directly responsible for developing fundamental server virtualisation during the 1970s and 1980s is inaccurate. IBM played the key role during the early period, while virtualisation technologies were later developed by VMware, Microsoft, Citrix, and other companies. The spread of personal computers and network technologies during the 1980s and 1990s also created the conditions for the later transition to distributed services.

A new stage began in the late 1990s. Salesforce was founded in 1999 and became one of the best-known early providers of subscription-based enterprise software delivered over the internet. However, it would be inaccurate to call Salesforce the first company ever to provide access to software over a network, as remote computing and application services had existed before then. Salesforce’s significance lay in popularising the commercial SaaS model for the enterprise market. The main stages of the company’s development are presented in the official history of Salesforce.

In 2006, Amazon Web Services launched Amazon S3 for object storage and later that year introduced Amazon EC2, which provided developers with access to scalable computing resources. The launch of these services became one of the key milestones in the development of the modern public cloud market. The launch date of S3 is confirmed by an official AWS publication.

Microsoft, Google, and other technology companies soon began actively developing their own cloud platforms. As a result, businesses gained access not only to remote data storage but also to virtual servers, managed databases, analytics, machine learning tools, network services, and ready-to-use software products.

Cloud technologies therefore did not emerge at a single point in time. They resulted from the gradual development of mainframes, time-sharing, virtualisation, networking, data centres, automation, and commercial service models. Their central idea is to provide computing resources as a managed service according to the user’s requirements.

How cloud technologies work

How cloud technologies work

Virtualisation is one of the foundational technologies of cloud infrastructure, but it is not its only component. A hypervisor makes it possible to create virtual machines with allocated processor resources, memory, disks, network interfaces, and an operating system. These virtual machines operate logically independently of one another even when they are hosted on the same physical server.

Physical servers, storage systems, and networking equipment are hosted in data centres. Providers combine these components into a pool of resources managed by specialised software. Customers can therefore obtain virtual servers, disks, networks, and other resources without directly managing the physical equipment.

The number of virtual machines that can run on one server depends on the equipment specifications, VM configurations, workload type, redundancy requirements, and provider policies. Universal statements about a single server supporting tens or hundreds of machines do not reflect every possible scenario. A cloud provider must manage capacity allocation, performance, availability, and physical infrastructure within the stated service terms.

Virtual machine isolation means that one VM should not have direct access to the memory, files, and processes of another. However, virtualisation alone does not guarantee absolute security. Protection depends on the security status of the hypervisor, network segmentation, access configuration, encryption, monitoring, and user actions.

The cloud operates according to a shared responsibility model. The provider protects defined components of the physical and software platform, while the customer remains responsible for its accounts, access permissions, configuration, applications, and data. The boundary of responsibility depends on which of the types of cloud services is being used: IaaS, PaaS, or SaaS.

Users access cloud resources through the internet, a private channel, or another network connection. A browser, mobile or desktop application, management interface, or API may be used for interaction. The ability to work from any device depends on the specific service, supported clients, access policy, and availability of a stable connection.

The growing popularity of cloud technologies

Demand for cloud technologies continues to grow, but the original version of this article misstated the size of the market. The figure was not $600 million. Gartner forecast worldwide end-user spending on public cloud services at $595.7 billion in 2024, rising to $723.4 billion in 2025. These figures were published in an official Gartner forecast.

In 2026, demand for artificial intelligence infrastructure became an additional growth factor. Gartner forecasts that total worldwide IT spending will reach $6.37 trillion in 2026, with data centre systems and IaaS among the major drivers of infrastructure investment. This figure covers the entire IT market rather than cloud services alone, so it should not be compared directly with the public cloud spending forecast.

Users can store files, run applications, and access remote computing resources from different devices. For businesses, this simplifies the creation of testing environments, remote collaboration, the launch of new products, and the management of variable workloads.

One of the principal advantages of the cloud model is the ability to obtain and adjust resources quickly. However, these benefits are not automatic. Companies still need cost controls, performance monitoring, access management, backup, and a tested recovery plan. Without these processes, cloud flexibility may be accompanied by uncontrolled expenditure or new risks.

Which services use cloud technologies?

Which services use cloud technologies

Cloud technologies have long extended beyond the IT sector and now support many business and consumer services. Users may interact with cloud platforms without thinking about where the servers are located. Examples include storing photographs online, editing documents in a browser, streaming video, and using a corporate CRM.

Cloud solutions include much more than storage. They cover computing resources, ready-to-use software, development platforms, databases, analytics, backup, disaster recovery, and other infrastructure services.

Cloud data storage

Cloud data storage

Cloud storage services allow users to store documents, photographs, videos, archives, backups, and other data on a provider’s infrastructure. Users can access this information over a network in accordance with configured permissions and the capabilities of the particular service.

The security level of cloud storage depends on its architecture and configuration. Encryption in transit and at rest, multi-factor authentication, permission separation, and logging help reduce risks but do not provide absolute protection. Incorrectly configured public access, a weak password, or a compromised account can cause a data breach even on a reliable platform.

Redundant storage should not be confused with backup. Replication supports data availability after an individual hardware failure, but accidental deletion or encryption may be propagated to every replica. Returning to an earlier state requires separate backup with defined recovery points and retention periods.

Storage capacity can be adjusted without purchasing company-owned disk arrays, but the availability and speed of scaling depend on the tariff and service. A company should also consider the cost of operations, requests, backups, and data transfer rather than evaluating only the price per gigabyte.

These capabilities make cloud storage suitable for personal files, team collaboration, corporate archives, media content, and backup. However, the type of storage should be selected according to the data structure, access frequency, performance requirements, and recovery objectives.

Cloud computing resources

Cloud computing resources

Cloud computing resources provide companies with access to virtual servers and other capacity located in data centres. This makes it possible to perform complex computations, run resource-intensive applications, and process large volumes of data without first investing in company-owned equipment.

Consumption-based pricing is not available for every service and depends on the pricing model. Some platforms operate on a PAYG basis, while others charge monthly for a reserved configuration. Financial benefits should therefore be assessed using the full cost of processors, memory, disks, traffic, licences, backups, technical support, and administration.

Cloud computing resources are used in the following scenarios:

  1. processing large datasets and performing analytical tasks;
  2. training and operating machine learning and artificial intelligence models;
  3. developing, testing, and launching web and mobile applications;
  4. hosting corporate websites and platforms;
  5. performing complex calculations, rendering, and simulations;
  6. creating virtual work, training, and testing environments.

AWS, Microsoft Azure, Google Cloud, and other platforms offer different sets of tools. They provide resources for small testing environments, enterprise systems, analytics, Big Data, and AI workloads. Instant scaling is possible only when it is supported by both the service and the application architecture. A standard virtual machine does not automatically increase its resources without appropriate policies and configuration.

For short-term, seasonal, or experimental projects, renting cloud resources may be more financially appropriate than creating company-owned infrastructure. For stable and predictable workloads, dedicated servers may sometimes remain the more cost-effective option. The choice depends on the workload profile, control requirements, performance, scalability, and total cost of ownership.

Cloud-based software as a service

Cloud-based software as a service

SaaS, or Software as a Service, allows users to work with ready-to-use software over a network. A browser is often sufficient, although some services also provide desktop and mobile applications. The defining characteristic of SaaS is that the core software and infrastructure are maintained by the provider.

A SaaS provider is generally responsible for updating the platform itself, maintaining its availability, and providing technical maintenance within the terms of the contract. However, users remain responsible for their own accounts, access permissions, integration settings, and handling of data. It is therefore incorrect to claim that customers do not need to consider security at all.

Well-known SaaS solutions include Google Workspace, Microsoft 365, Slack, Zoom, Salesforce, and many other services. The available functions and supported devices depend on the specific product. Data may be synchronised between devices if this capability is supported by the platform and permitted by corporate policies.

SaaS is particularly useful for collaboration. These services enable users to edit documents together, hold video meetings, exchange messages, and manage projects. For companies with distributed teams, this simplifies access to tools but also requires centralised user management and control of external access.

Cloud platforms as a service

Cloud platforms as a service

PaaS, or Platform as a Service, provides developers with a managed environment for creating, testing, and deploying applications. The provider maintains the physical infrastructure, operating system, and part of the software platform, while the customer’s team concentrates on code, application configuration, and data.

PaaS platforms may include runtime environments, managed databases, deployment tools, monitoring, logging, and integration tools. The exact set of capabilities differs between products. The main advantage of PaaS is that the team spends less time on basic administration and can move changes into the production environment more quickly.

PaaS is used to create web and mobile applications, APIs, internal corporate systems, analytics services, and artificial intelligence solutions. Well-known examples include Google App Engine, Microsoft Azure App Service, and Heroku. Before implementation, companies should check supported technologies, platform limits, data export methods, scaling costs, and the risk of dependence on provider-specific capabilities.

Cloud databases

Cloud databases

Cloud file storage, object storage, and managed databases are different classes of service. A database is intended for structured or document-based information that applications access through queries. Object storage holds files and metadata as separate objects, while file storage organises data in a conventional directory hierarchy.

Managed cloud databases can simplify updates, scaling, monitoring, and backup creation. However, the availability and parameters of these functions depend on the tariff, configuration, and specific service. Increasing storage capacity or performance may not always happen instantly or without interruptions.

Well-known managed platforms include Amazon RDS, Google Cloud SQL, Microsoft Azure SQL Database, MongoDB Atlas, Firebase, and Oracle Autonomous Database. They differ in their data models, supported database management systems, scaling methods, redundancy, migration capabilities, and cost.

The claim that all cloud databases guarantee automatic backups, rapid recovery, and a high level of security is too broad. Backup may be an optional feature, have a limited retention period, or require additional payment. Recovery speed depends on data volume, the available recovery point, configuration, and agreed RTO and RPO targets.

Before selecting a database, a company should evaluate compatibility with its application, performance, scaling model, replication, backup, encryption, logging, data location, and portability to another platform. The cost of operations, storage, and outbound traffic may also have a substantial effect on the budget.

Cloud technologies for different industries

Cloud technologies for different industries

Companies use cloud solutions across different sectors, but their scenarios, requirements, and limitations vary considerably. Real-time data processing is important in logistics, scaling for peak workloads is critical in e-commerce, while financial and healthcare organisations must pay particular attention to access controls, regulatory compliance, and the continuity of critical systems.

The cloud can help businesses obtain resources more quickly, connect new services, and create backup sites without purchasing all the required equipment. However, the mere existence of a cloud platform does not ensure continuous operation. This requires a fault-tolerant architecture, monitoring, independent backup, and a tested disaster recovery scenario.

The following sections explain how cloud technologies are used in particular industries and which conditions determine the effectiveness of these solutions.

Transport industry

Transport industry

In transport and logistics, cloud services are used for centralised supply chain management, vehicle and shipment tracking, route planning, warehouse coordination, and data exchange between participants in the delivery process.

Systems can receive information from GPS trackers, sensors, warehouse equipment, and corporate applications. Processing this data helps dispatchers understand the current situation, identify deviations from planned routes, and adjust operations. Lower fleet maintenance costs are not an automatic result: they depend on data quality, algorithms, integrations, and the actual use of generated recommendations.

Cloud technologies can also support demand forecasting, vehicle capacity planning, and delivery time analysis. For systems that affect physical operations, network availability, offline procedures for connectivity failures, and a clear division of responsibilities between suppliers are particularly important.

Cloud-based e-commerce

Cloud-based e-commerce

In e-commerce, cloud solutions are used to host websites, catalogues, databases, search systems, analytics, CRM platforms, order management systems, and other components. A scalable architecture can help an online shop handle seasonal peaks, marketing campaigns, and periods of rapid traffic growth.

High availability does not result solely from moving a website to the cloud. It requires load balancing, redundancy, monitoring, automated recovery, attack protection, and testing. Payments are usually processed by a separate payment provider, so the shop’s cloud infrastructure cannot independently guarantee the speed or successful completion of every transaction.

Cloud services are also used to analyse customer behaviour, personalise offers, and forecast demand. These activities must comply with personal data protection requirements and take account of the need for transparency in automated decision-making.

Shopify and BigCommerce are cloud-based SaaS platforms for e-commerce. Magento, now Adobe Commerce, can operate under different models, including customer-managed and cloud infrastructure. It is therefore inaccurate to place all these products in the same technical category without further clarification.

Financial sector

Financial sector

Banks, financial companies, insurance organisations, and payment services use cloud technologies for analytics, development, testing, customer services, backup, and selected production systems. The specific workloads that may be placed in the cloud depend on regulatory requirements, data classification, and the organisation’s internal policies.

A cloud platform cannot guarantee the highest level of security simply because of its hosting model. Financial institutions must manage user identification, privileges, encryption, logging, segmentation, incident response, backup, and supplier-related risks.

The cloud can reduce the time required to obtain resources and simplify the launch of new services, but it does not necessarily minimise costs in every scenario. For critical systems, organisations should evaluate total cost, availability, data jurisdiction, the provider exit plan, RTO, RPO, and the ability to operate during a large-scale incident.

Cloud solutions for healthcare

Cloud solutions for healthcare

In healthcare, cloud technologies are used for electronic medical records, telemedicine, image storage, data exchange between institutions, analytics, and administrative processes. The level of adoption differs according to the country, institution, regulatory restrictions, and readiness of information systems.

Cloud solutions can provide healthcare professionals with controlled access to current information and improve coordination between departments. However, they do not automatically improve the quality of medical care. The result depends on data quality, integration, system availability, staff training, and appropriate separation of access permissions.

Medical data is particularly sensitive information. Before migration, an organisation must assess the legal basis for processing, storage location, encryption, provider access, auditing, retention periods, and deletion procedures. Critical clinical systems also require redundant connections and operating procedures for periods when the cloud is unavailable.

Custom cloud solutions for businesses from HostPark

Custom cloud solutions for businesses from HostPark

A standard cloud configuration is not always sufficient for systems with specific performance, network, compatibility, security, or disaster recovery requirements. In such cases, the architecture is developed according to actual workloads and business priorities. HostPark offers custom and hybrid cloud solutions that can combine cloud resources, dedicated servers, colocation, private connections, and data protection services.

When considering HostPark as a cloud infrastructure provider, a business can evaluate the following characteristics:

  1. Architecture adapted to specific requirements. The configuration can be developed according to the workload, industry, network requirements, availability targets, and future scaling plans. Resource changes and additional services depend on technical compatibility and agreed terms.
  2. Infrastructure in Ukraine and Poland. HostPark has operated in the market since 2009 and works with Atman, VMware, and Veeam. The required level of protection, availability, and responsibility should be defined for each project in the technical specification and SLA rather than inferred only from partnership status.
  3. 24/7 technical support. Businesses need more than a communication channel. Incident priorities, response times, escalation procedures, and the tasks performed by the provider should be agreed in advance.
  4. Combination of different infrastructure models. Cloud resources can be combined with dedicated servers, colocation, Object Storage, BaaS, DRaaS, and Cloud Connect. This means that systems with different requirements do not all need to be moved into the same model.
  5. Experience in implementing business IT solutions. When evaluating a provider, companies should review relevant case studies, team expertise, documentation, migration conditions, and the ability to test the proposed configuration.

No cloud platform eliminates every risk or removes the customer’s need for IT expertise. Even when the provider maintains the equipment and part of the software environment, the company must define requirements, manage access, plan backup, monitor expenditure, and test recovery.

Before ordering a solution, it is advisable to prepare an inventory of systems, data volumes, workload profiles, network dependencies, jurisdiction requirements, target RTO and RPO values, and the available budget. This information makes it possible to compare public, private, and hybrid models and avoid purchasing unnecessary resources.

Conclusion

Cloud technologies have become an important part of modern digital infrastructure. They allow companies to obtain resources more quickly, create new services, organise remote work, and adapt capacity to current requirements. However, the cloud does not guarantee cost savings, security, scaling, or continuity without appropriate architecture and management.

Cloud services are used in e-commerce, logistics, finance, healthcare, education, and many other sectors. Each case requires consideration of the data type, performance requirements, availability, regulatory compliance, backup, and disaster recovery.

To determine which infrastructure is suitable for a particular project, provide HostPark specialists with a description of the current systems, workload, security requirements, scaling plans, and recovery objectives. This information can be used to develop a justified configuration and a phased plan for implementing cloud technologies.

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