What is the cloud? Meaning, how it works and its benefits explained simply

The cloud is something you already use every day, even if you do not think about it. But what exactly does cloud computing mean? You’ll learn what the cloud is, how it works, what benefits it offers and what to look out for when using it, both privately and in business.

19.11.2025 | Reading time: 7 minutes

What does cloud computing mean?

Cloud computing refers to accessing IT resources such as storage, computing power or software via the internet. Instead of storing files or applications on your own computer, they are kept in a data centre that you can access from anywhere. This approach makes everyday tasks easier. You do not have to install updates manually, you can work from any device and your files stay available wherever you go. Companies benefit from scalability, efficiency and cost transparency, while private users enjoy easy access and data security.

How does cloud technology work?

The cloud is based on two core technologies: virtualisation and high-performance networks.

With virtualisation, a physical server is divided into many virtual machines. Each one operates independently and can perform different tasks. This allows many customers to use the same hardware without affecting each other.

The network layer connects these systems to the internet. Cloud providers operate data centres worldwide, secure data through multiple backups and ensure failover protection, automatic backups and regular updates.
Access is via browser, mobile apps or interfaces (APIs) – anytime and anywhere.

A key advantage is scalability. If you temporarily need more computing power or storage space, you can activate it immediately. When demand decreases, you can scale it down again without having to buy new hardware.

What types of cloud are there?

Cloud computing is not all the same. There are different models that vary according to security requirements, costs and flexibility.

• Public Cloud: run by external providers and used by many customers. It is flexible and cost effective, which makes it ideal for most standard applications.
  
  
• Private Cloud: a private cloud is used exclusively by one company, either in its own data centre or as a dedicated solution from a provider. It is suitable for security-critical data and environments with strict compliance requirements.
  
  
• Hybrid Cloud: a combination of public and private cloud. Sensitive information stays internal, while other workloads use the public cloud.
  
  
• Multi-Cloud: using several cloud providers at the same time to reduce dependency and choose the most suitable service for each task.
  
  

For private users, the public cloud is usually the easiest solution. If you work with confidential data, choosing a provider with servers in Switzerland or the European Union ensures stronger data protection standards.

Cloud services and service models: SaaS, PaaS, IaaS and Serverless

Cloud offerings differ not only in their infrastructure but also in the way they are used. These so-called service models define who is responsible for what.

• Software as a Service (SaaS) refers to ready-to-use applications that you access directly via a browser or an app. The provider takes care of operation, updates and security, you simply focus on using the application. Examples include email services, online office tools or CRM systems.
  
  
• Platform as a Service (PaaS) provides a development environment where developers can create and deploy applications. The underlying infrastructure is managed by the provider.
  
  
• Infrastructure as a Service (IaaS) offers virtual servers, storage and networks. You can use them like physical hardware, only online.
  
  
• Function as a Service (FaaS) or serverless computing goes even further: applications are executed only when they are needed. You therefore pay only for actual usage.
  
  
  

Cloud security and data protection

Security is at the heart of every cloud strategy. Leading providers invest billions in cybersecurity, encryption and monitoring to protect data from attacks. However, responsibility does not lie solely with the provider. Users should pay attention to strong passwords, multi-factor authentication and regular backups. Equally important is clear access control: only those who genuinely need the data should be able to see it.

When it comes to data protection, the location of the data centre is crucial.
Swiss or European providers are subject to the GDPR and the Swiss Data Protection Act, which impose particularly strict requirements for data security and transparency.

Advantages of the cloud for individuals and businesses

The cloud offers many benefits that simplify digital everyday life and make companies more agile.

One of the biggest advantages is flexibility. Storage and computing power can be increased or reduced within seconds. This allows companies to respond to sudden fluctuations in demand without purchasing new hardware.

Another important benefit is cost control. Instead of making large initial investments, you only pay for the services you actually use. This pay-as-you-go model ensures financial transparency.

Availability is also a strong argument. Professional providers guarantee almost constant accessibility, redundant systems and automatic backups. This ensures stable processes and protects against data loss.

And finally, the cloud offers location independence. Whether in the office, at home or on the go, you can access your data, applications and projects anytime.

Risks and challenges of cloud computing

Despite all its advantages, there are aspects that should be viewed critically. The cloud requires a stable internet connection. Without it, access is not possible, which can be problematic, especially in regions with weak network coverage.

Data protection and compliance are also crucial. Not all public cloud offerings are suitable for sensitive information. Before migration, legal requirements and the provider’s certifications should therefore be reviewed.

Another risk is the so-called vendor lock-in, dependence on a single provider. Those who invest too deeply in a specific ecosystem may find it difficult to switch later. An open architecture and the use of multi-cloud strategies can help here.

Practical recommendations for a secure cloud start:

• Start with less critical services such as backups or office applications.
  
  
• Choose providers with clearly defined Service Level Agreements (SLAs).
  
  
• Carry out test migrations before moving complex systems.
  
  
• Plan regular backups and an emergency strategy.
  
  

With the right approach, risks can be minimised and the benefits fully leveraged.

Cloud computing in everyday life and business

You already use the cloud every day. Saving photos, streaming entertainment, editing documents and collaborating with colleagues all rely on cloud services.

In companies, the cloud drives digital transformation. It supports remote teams, reduces IT costs and helps organisations grow and innovate at a faster pace.

FAQ about cloud computing

Where can I find my cloud?

You can usually access your cloud through an app or directly in your web browser. Well-known providers such as Google Drive, iCloud, Dropbox or OneDrive give you access to your data – you just need to sign in with your account.

What is the cloud used for?

With the cloud, you can store photos, videos or documents and access them from anywhere. It helps you save space on your phone or computer and keeps your files safe and up to date.

What is a cloud on a mobile phone?

On a mobile phone, the cloud is an online storage space. Your photos, contacts or app data can be automatically backed up there, so you don’t lose them – even if you change or damage your device.

What is the difference between a public cloud and a private cloud?

The public cloud is shared by many customers, while the private cloud is operated exclusively for one company. The latter offers higher security but comes at a higher cost.

Is cloud computing secure?

Yes, if you choose reputable providers with certified security and also use measures such as two-factor authentication and encryption.