Physical storage can span multiple servers (sometimes in different locations), the provider is what is called a hosting company. The largest providers are Microsoft, Amazon, Salesforce, SAP and IBM.
These hosting companies are responsible for ensuring that the data and programs on their systems are available, accessible, and secured against unauthorized access for businesses and general users. Individuals and organizations rent storage capacity and usage access to applications from the providers.
- Companies only have to pay for the storage they use on average.
- Power consumption can be reduced by up to 70% as a result, according to studies.
- Availability and data security is ensured by the provider and usually managed to the highest standards because the hosting business model depends on it.
- Businesses have access to a wide range of consistently maintained applications on a per-use rental basis through Cloud computing, rather than having to purchase and maintain applications themselves.
- A hosting company has a larger number of employees to take care of storing the data of many companies and thus has access to that data than would be the case with an in-house IT department.
- Hosting companies may disappear or restructure in ways that are detrimental to previous customers.
- When accessing Cloud services, data rate (bandwidth) plays a more critical role than with on-premises solutions.
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