Cloud Computing: Types, Applications & Challenges

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Context (TH): RBI plans to launch a pilot programme in 2025 offering local cloud data storage to financial firms at affordable prices.

What is Cloud Computing?

Cloud computing distributes computer services such as servers, storage, databases, networking, software, analytics, and intelligence through the Internet (“the cloud”) to enable quicker innovation, more flexible resource allocation, and cost savings.
It eliminates the need for individuals and businesses to self-manage physical resources themselves and only pay for what they use.

Public Cloud: Services are delivered over the Internet and accessible to authorised users. The cloud provider manages all hardware and software components. Examples include Amazon Web Services (AWS) and Microsoft Azure.
Private Cloud: Exclusively used by a single organisation and runs on a private network. Access is limited to internal users and can be on-premises or hosted by third-party providers. E.g, VMware Cloud.
Hybrid Cloud: Combines elements of both public and private clouds, allowing for on-premises storage of sensitive data while utilising the public cloud for less sensitive information.
Multi-Cloud: Involves using services from multiple cloud providers within one architecture, offering various features and functions from different vendors.

Service Model	Description	Applications	Examples
Infrastructure as a Service (IaaS)	Provides on-demand access to IT infrastructure services such as compute, storage, networking, and virtualisation. Offers highest control over IT resources, similar to traditional on-premises IT resources.	Web hosting, big data analysis, high-performance computing, e-commerce platforms, mobile app backends	Amazon EC2 Services, MeghRaj Initiative (GoI cloud)
Platform as a Service (PaaS)	Offers hardware and software resources needed for cloud application development, allowing companies to focus on application development without managing infrastructure.	Application development, business process management (BPM), business analytics and intelligence, automated backup and disaster recovery	Microsoft Azure App Service, AWS Elastic Beanstalk, Aadhaar authentication services
Software as a Service (SaaS)	Delivers a full application stack as a service, including infrastructure, maintenance, and updates, typically for end-user applications managed by the service provider.	Customer relationship management (CRM), enterprise resource planning (ERP), email and communication, content management systems (CMS)	Microsoft Office 365, Dropbox, Google Workspace, GSTN, DigiLocker, AEPS, BHIM

Media Streaming: Platforms like Netflix and Spotify host streaming services for video and music.
Virtual Meetings: Services like Microsoft Teams host virtual meetings and conferences.
Secure Storage: Cloud services like Dropbox and Google Drive offer secure and easily accessible data storage from anywhere.
Telemedicine: Cloud-based apps, like Teladoc, facilitate remote medical consultations and services.
Online Marketplaces: E-commerce platforms use cloud computing to host and manage online stores.
Public Records Management: Secure cloud databases, such as those used by the National Archives and Records Administration (NARA) in the US, manage public records.
Device Management: Platforms like IBM Watson, manage and analyse IoT device data and operations.

Security: Concerns about data breaches, API exploitation, credential theft, authentication issues, and unclear practices by cloud providers handling sensitive data.
Cost Unpredictability: Pay-as-you-go models and resource scaling can lead to unpredictable expenses, with additional charges from using multiple cloud services.
Lack of Capability and Expertise: Finding qualified professionals to manage cloud technologies is challenging, and organisations struggle to keep up with rapid technological advancements.
IT Governance: Limited control over cloud infrastructure complicates IT governance, risk management, compliance, and maintaining data quality.
Compliance: Ensuring regulatory adherence when using third-party cloud storage is difficult, with the actual location of data playing a crucial role in compliance.
Management of Multiple Clouds: Handling various cloud environments divides focus and resources, complicating overall management due to the distinct characteristics of each cloud.
Building a Private Cloud: Developing and managing private or hybrid clouds is complex & demanding.
Cloud Migration: Transferring data or applications to the cloud poses technical challenges and expenses, especially for large datasets.

Growth in SaaS: India is the second-largest SaaS market after the US. Indian SaaS companies are projected to grow 20-25% annually, aiming for $35 billion in ARR by 2027.
Hybrid Cloud Adoption: Increasing adoption of hybrid cloud models, combining private and public clouds for flexibility and cost optimisation.
Data Centers Expansion: Investment by Indian companies like Reliance Jio and Bharti Airtel in building large-scale data centres for cloud and edge computing services.
Healthcare Transformation: Pivotal during the COVID-19 pandemic, enabling telemedicine services and remote diagnostics.
E-commerce Scalability: Platforms like Flipkart and Amazon India use cloud services to handle traffic spikes during festive seasons and sales.

E-Gram Panchayat: The ePanchayat initiative enhances internal govt operations in village Panchayats.
DigiLocker: Public cloud-based storage for digitally verified documents. Over 57.13 million users and 4.27 billion issued documents.
National Highway Authority of India (NHAI): Fully digital with a cloud-based, AI-powered big analytics platform. Cloud-based data lake with GIS tagging for easy retrieval of project data.
Indian Railways on Cloud: The largest rail network in Asia and the second-largest worldwide. Cloud technology is implemented to manage railway data and reduce revenue loss.
Kisan Suvidha: Portal to provide farmers with instant, relevant information on weather, market prices, and agricultural practices.
eHospital: Cloud-based healthcare project for streamlined healthcare management. Unique identification number for patients, enabling access to medical history.
National Initiatives: Supports initiatives like Swachh Bharat Mission, e-Hospital, National Scholarship, My-Gov, and e-Transport.
Government e-Marketplace (GeM): Multi-cloud architecture ensuring scalability. It serves over 50,000 buyer organisations and has over 19 lakh products and 80,000 services listed.
S3WaaS: SaaS-based service empowering dist administrators to create & deploy scalable websites easily.