Cloud computing services enable companies to store their data in remote repositories over the Internet, rather than on their own servers and hardware. These services are provided by third-party service providers for an annual fee, which can eliminate the expense of purchasing and deploying hardware and managing the infrastructure on site.

SaaS is the most widely used type of cloud computing in business environments. SaaS applications offer high availability, are simple to access and use on any device that has an internet browser. They are usually purchased per seat or per user and eliminate the need to purchase and install software for each employee. They also come with devices that support the application.

PaaS is yet another cloud computing platform that allows for application development and deployment. It allows developers to build applications, test, deploy and manage complete apps in one location. Examples of this include Microsoft Azure, AWS Elastic Beanstalk and Google App Engine.

IaaS is a cloud computing version that provides basic infrastructure capabilities including servers, data storage and hardware. This lets companies host large platforms without having to invest in massive physical infrastructures. Notable IaaS vendors include DigitalOcean, Amazon EC2 and RackSpace.

Automatic software updates: Cloud applications automatically update and refresh themselves, reducing time that IT departments have to spend to perform manual system upgrades organization-wide. This could save IT staff and IT budgets from unnecessary outside IT consulting costs according to PCWorld. Cost uncertainty: Pay-as-you go subscription plans as well as the need to scale resources in order to accommodate changing workload demands can make it difficult for companies to anticipate their final cloud costs.

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