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What is Cloud Technology and How Does It Work?


We are living in the age of knowledge-driven economies. Information is an asset today and how we share it defines the extent of our success. We have made progressive developments in the way we share and exchange information. However, the real game changer has been the emergence of cloud technology.

Cloud computing or technology – also popularly referred to as the cloud – has redefined the way we store and share information. It has helped us transcend the limitations of using a physical device to share and opened a whole new dimension of the internet.

However, cloud computing is like one of those enigmas that everybody is talking about but only a handful of people understand. The cloud has become a widely used jargon today, but many people find themselves asking, what is cloud technology and how does it work?

So, let’s drill down to the basics and see what we can unearth.


Let’s define and simplify the cloud first to understand what does cloud mean and what does the cloud do.

The cloud is a virtual space that exists on the internet. It is a storage space where people can place their digital resources such as software, applications and files. So in simplified terms, we can say that the cloud is a virtual storage space on the internet.

A lot of people do get the cloud mixed up with the internet. However, the cloud is only one part of the internet and not the whole thing.

So how does cloud technology work? Cloud computing technology allows people to use the digital resources stored in the virtual space by way of networks – often satellite networks. It allows people to share information and applications across the internet without being the restriction of their physical location.


There is a lot of hullabaloo around cloud computing and understandably so. There are some major benefits that cloud computing brings to the table that are just hard to ignore.


Cloud storage is not limited by the capacity of any physical device. Unlike the previous storage solutions, there are no limitations of capacity. This means we get better and higher storage and don’t have to worry about upgrading the memory of a device.


There are a lot of companies that have fluctuating bandwidth requirements. Cloud is a beneficial tool for them since it allows them to scale up when needed by drawing on the remote servers. Similarly, you can scale down easily when needed. This scalability is often referred to as the ‘operational agility’ by CIOs of growing brands and credited for the success.


Today’s economy requires workers to have the knowledge to work with colleagues from multiple remote locations. Cloud computing makes it easy to share and access digital resources from any part of the globe. This leads to better collaboration between global teams.


Cloud computing eliminates the need for physical hardware for storage purposes. This, in turn, reduces the capital expenditure for companies. These funds can then be appropriated towards innovation or research and development to pave new pathways of success.

For small companies that are still trying to find their footing, purchasing a software can be expensive. Instead, such companies can use the software on a pay-per-use basis from the cloud. It is more like leasing out a service instead of purchasing it.


It is imperative for businesses of all sizes to invest in disaster recovery protocols. However, it requires money and expertise, which is often lacking with small companies. The cloud gives them the ability to implement backup and recovery solutions in cost-effective and hassle-free manner.

To explore cloud solutions for your business, get in touch with Dynamix Solutions. We can simplify cloud technology and give you a consultation on how the cloud can spearhead your business growth.


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