Why use Cloud?

Learn about Cloud and how this technology could be used to unlock benefits and time savings for your business.

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Introduction 1. What is cloud computing? 2. Types of cloud services 3. Cloud storage options 4. Cloud considerations 5. Next steps

Introduction to 'Why use Cloud?'

Cloud computing. What does it mean to you? Many people struggle to answer that question, even though they use cloud services every day. If you stream movies, send instant messages or listen to music playlists, you do too.

And for your business, cloud can help you:

Save money

On your equipment and hardware.

Save time

With online systems and data processing

Be flexible

Work anywhere and adapt as you grow.

In this lesson, we’ll be your cloud guide. We’ll explain what you need to know about cloud, plus how to get the most out of it for your business.

What you'll learn

  • What cloud is, and the benefits it brings.
  • The different services and storage options.
  • Ideas for writing a business case for cloud.

How long it takes

14 minutes

Chapter 1 - What is cloud computing?

What is cloud computing?

Chapter 1

How long it takes

2 minutes

Getting to know the basics

Before we look at the different cloud options, let’s answer a few questions about the cloud.

What is 'the cloud'?

Think of the cloud as a huge online storage space. For example, you might save your photos to iCloud or Google Drive. This frees up space on your phone. And if you lose your phone, you can still retrieve those photos.

Where does it store my data?

Machines called servers hold your data for you. You can reach it from the internet.

How can it help my business?

Cloud gives you services that you can use wherever you are, whenever you want, over the internet. So you don’t need to rely on hardware and software that’s costly or quickly gets out of date.

You can manage your services, platforms and / or infrastructure with cloud. Just work out what you need, then pick what’s right for you. In this chapter, we’ll ask you to think about what you need, so you can pick the tools that suit your business.

 

Here are a few examples of how cloud can help with day-to-day issues. Select each one to find out more.

 

Activity

These examples give you an idea about where cloud computing could help. It's time now to think about the needs of your own business. What are the key issues you face?

Jot these down now. And bear them in mind, as you read the options in the rest of this lesson. 

Introduction - Why use Cloud?
Chapter 2 - Types of cloud services

Types of cloud services

Chapter 2

How long it takes

3 minutes

What services are there?

Cloud can help with three main things – your services, your platforms, and your infrastructure. And there’s a cloud service for each of these. 

We’ll describe each of these by comparing it to someone starting their own shop.

IaaS - Infrastructure as a Service

This is like renting out an empty shop unit. You get the building and basic utilities, but you need to set up everything else – tills, stock systems, etc.

With IaaS, you rent the IT infrastructure. That’s things like the servers, data storage and networks. Then you build your own systems on top of this.

 

With IaaS, you can:

  • Save money – You may get cheaper web hosting and save on hardware costs.
  • Have full control over data and systems.
  • Scale up or down – As your business grows, so can your infrastructure.
  • Pay-as-you-go – only pay for what you need at the time.

 

Bear in mind:

  • You’ll need technical skills.
  • You handle security updates and maintenance.

 

IaaS examples include Amazon Web Services (AWS) and Google Cloud Platform.

PaaS - Platform as a Service

This is like renting out a shop that’s already set up with shelves, tills and stock systems. You just need to add your products and your branding.

PaaS gives you a ready-made platform to build and run your own applications. 

 

With PaaS, you can:

  • Launch apps or websites quickly – from an all-in-one system.
  • Build and test apps for multiple devices – using tools to mimic different types.
  • Get built-in updates and security.
  • Use top tools – where the non-cloud versions are too costly.

 

Bear in mind:

  • You’ll have less control over the infrastructure.
  • Costs can rise, depending on use.

 

PaaS examples include Google App Engine and Microsoft Azure.

SaaS - Software as a Service

This is like signing up to a service that sells your products for you. Like listing on Amazon or Etsy. They handle the website, payments and customer service. You just upload your products.

SaaS means you use software that’s ready to go. There’s a wide range of these – just pick the ones you want. No need to download or install anything on your device. You just need an internet connection.

 

With SaaS, you can:

  • Have a ready-to-use option – No need to buy or install software.
  • Pick a low-cost option – They may be cheaper than the non-cloud versions
  • Get automatic updates – So you don’t need to manage this.
  • Share with all your team – No matter where they are or what device they use.

 

Bear in mind:

  • You’re likely to pay a monthly or yearly subscription.
  • These are ‘off-the-shelf’  - So you may not be able to tailor much.

 

SaaS examples include:

  • Accounting software – for example, Sage, Xero and Intuit QuickBooks.
  • Customer Relationship Management (CRM) systems – such as Salesforce and Hubspot.
  • Collaboration and team working tools – like Slack, Google Workspace and Microsoft 365.
  • E-commerce tools – for example, Shopify and Squarespace
  • File hosting services – such as DropBox and WeTransfer.
  • Customer Service platforms – for example, Zendesk and Freshdesk.
  • Project and task management tools – like Monday and Asana.

You might already be using this type of service.

Web-based email services such as Outlook or Yahoo! are a type of SaaS. The email software is on the provider’s network, and this is where your messages are. But you can log into your account on a web browser and access this data anytime, on any device.

Which should you pick?

You can pick the service or mix of services that suits you. Do your research, to see what’s out there. You should consider your needs – which will fit best? We’ll help you to start thinking about this later.

Test your knowledge

Try again - that's not quite right!

Outlook is a ready-made application that you can reach through your web browser.

Try again

That's right!

You can see and write your Outlook messages on any device, through your web browser.

Chapter 1 -What is cloud computing?
Chapter 3 - Cloud storage options

Cloud storage options

Chapter 3

How long it takes

3 minutes

What storage options are there?

Now we’ve looked at the different cloud services, let’s talk about storage. Cloud services store data and host their services in three ways. It’s up to you to decide which one works best for your business.

 

You might find it helpful to think about cloud storage like office space:

Public cloud

An external company hosts the service and stores your data

This is like renting a desk in a large co-working space. You don’t own the building. The owner takes care of security, cleaning and maintenance.

It’s cost-effective, flexible, and you can scale up or down easily. But you have less control over the environment because it’s shared.

 

With public cloud, you can:

  • Have your own cloud in a shared environment.
  • Save money – it’s cheaper than private hosting.
  • Save time – the provider will look after data security and infrastructure.
  • Scale more easily – If your business grows quickly, you won’t need to spend on infrastructure changes.

 

Bear in mind:

  • You’ll be sharing resources - This may affect performance and response times.
  • Think about security – shared spaces can be more vulnerable.
  • Meeting compliance rules can be more complex – This guidance may help you.

 

Google Drive and Microsoft OneDrive are examples of public cloud.

Private cloud

You host and store the data on your premises

Think of this as renting your own private office in a building. You control the layout and security. You also decide who comes in. This space is tailored to your needs and gives you more privacy. But you’ll pay more for this and have more to manage.

 

 

With private cloud, you can:

  • Keep your data on your own servers – which may be a safer option.
  • Own your data control and compliance – to meet rules like GDPR.
  • Manage performance – Having your own resources can mean quicker response times and less downtime.

Bear in mind:

  • Upfront costs are higher – These include hardware and set-up costs.
  • Planning is key – Your infrastructure needs to cater for the changing needs of your business.
  • You’ll need a tech team – Experts who will manage operations and keep everything up-to-date.

Private cloud providers include Microsoft Azure and Google Cloud.

 

Hybrid cloud

A mix of public and private options for data and hosting

Imagine your business rents a private office for sensitive work — like handling client contracts. You also keep a few desks in a co-working space for your marketing team.

With the private office, you control security and access for critical tasks. The co-working space is flexible and cost-effective for everyday work and collaboration.

 

With hybrid cloud, you can:

  • Balance cost with control – Keeping sensitive data on a private cloud, and using public cloud for the rest.
  •  Manage compliance – By deciding where and how you store and process your data.
  • Keep business continuity – Combining local storage with cloud backups can mean faster data recovery.

How to decide

Every business has its own unique needs. So think about yours when you decide on a storage and hosting solution. Ask yourself - what’s most important to your business? In the next chapter, we’ll look at some factors that could help you decide.

Test your knowledge

Try again - that's not quite right!

You’ll be responsible for looking after your data, on servers that you’ll need to buy.

Try again

That's right!

Your data is on your own servers, so it’s always in your control.

Chapter 2 - Types of cloud services
Chapter 4 - Cloud considerations

Cloud considerations

Chapter 4

How long it takes

4 minutes

Before you decide

We’ve shown you some examples of the types of cloud services and storage options. Before you pick your cloud options, here’s a list of some things to think about.

Security

You want a cloud option that will keep your data safe and secure. So finding a trusted cloud service provider is key. Look at how they manage this. Larger companies may be able to give stronger security than smaller providers.

 

Questions to ask your cloud service provider:

  • Who can see my data?
  • Where do you store my data? Do you hold it in more than one place to give further protection?
  • What do you do to encrypt my data?
  • What happens if there’s a crash or data breach?

Data storage and security

You might think that private cloud is the way to go. But you need to know what’s involved. Tools to keep your data safe can be costly and take time to learn. Cloud companies have the money to invest in high-quality security tools. Plus, they’ve got the skills and resources to keep them up-to-date. So using private cloud servers doesn’t always keep your data safer.

Idea

Do you hold customer details, financial data or confidential business information? You may want to explore data loss prevention (DLP) solutions.

These help to protect your data from unauthorised access. They can also disable access when they pick up suspicious activity.

The risk of losing your data

When you use public cloud, the provider backs up your data. So if one server goes down, your data is still safe. For cloud hosting companies, their reputation relies on keeping everyone’s data safe. So they spend time and money to protect against server damage or loss.

What would you do if you lost all your data? Customer details, product and pricing information, plus everything you use day-to-day to keep your business running. You’d want to get all of this back as soon as possible.

 

That’s why it’s good to follow the 3-2-1 rule:

Have at least 3 different versions of your data

Store it on 2 different media

Store 1 data backup offsite

Costs

How much we pay is high on our list when we’re deciding which way to go. Sometimes, pay-as-you-go options are more affordable than spending lots of money upfront.

Look carefully at what you are paying for, and for how long. Is there a minimum amount of time you can sign up for a subscription service? How flexible are the payment plans – and how easy is it to switch between them?

When working out your Cloud costs, think about:

  • What it costs to set up.
  • Hardware costs - If you're using private cloud.
  • Regular costs – Like subscriptions to cloud services.
  • Any free options – This might include ‘free trials’ after which you need to pay, so check the post-trial rate.
  • Training costs – As you move to cloud, your team will need to learn how to use the services.
  • Likely upgrade costs – To a greater range of services, or for more users.
  • Return on investment (ROI) – What is cloud going to save for your business?

 

Software costs

This can depend on the number of users, the level of service or how many features you want.

There are free options for some services, though there may be restrictions with these. 

Storage costs

When you compare private and public cloud, there will be a higher set-up cost with private. You may find this works out cheaper in the end, as you’re not paying regular service fees. But don’t forget to add maintenance and upgrades when you lay out your costs.

More on this topic

The government has a useful guide on how to manage your cloud spending.

Go to the GOV.UK guide Opens in a new tab

Your internet connection

You might not need much to get started with cloud. But you will need good, strong web access. Without it, there could be issues trying to access cloud software and data. Lags and downtime will slow down your processes. And if you’re investing in the cloud to speed up your productivity, this could have a huge impact.

So, now’s the time to check your connection. It needs to be stable and reasonably fast. Free tools like SpeedSmart and Speedtest can test your internet speed. You may need to think about upgrading to a higher speed service, if this is an option.

Ease of migration

Your investment in cloud won’t be just in terms of money. There’s time and effort costs, too. If you have systems and infrastructure already, think about how easy it will be to move to a cloud provider. How will your own systems work on a new platform? Some cloud providers have tools to help you do this.

Consider the effect it will have on your team, too. Factor in the time it will take for them to learn the new systems, plus any work they need to do before and during the move.

Chapter 3 - Cloud storage options
Chapter 5 - Next steps

Next steps

Chapter 5

How long it takes

2 minutes

Your business case for cloud

By this stage, you’ve learnt what cloud is and why it’s important. Plus, you may have some ideas about the types of cloud services and storage options that are right for you. The next step may be writing a business case to set out your plans.

Your business case should bring together what you’ve learnt. It explains how using cloud can solve the issues and meet the needs of your business. In this document, you’ll be helping your team to understand how and where cloud will save your business time and money. And they’ll see the tools and storage options you’re suggesting.

 

 

Before you write your business case

Now’s a good time to check you have all the information you need.

Before you start, make sure you have notes that include:

A list of the business needs and the issues that cloud can help solve.

Secure options that say where you’re going to store your data.

A list of cloud tools you think can help.

Details of upfront and long-term costs, plus the potential cost savings.

A plan for the next steps.

How to write your business case

Here’s our top tips to help you build your business case for cloud:

 

  • Explain your current needs and issues. For example, ‘Our client data is held on a local server. When the team works from home or are out to meet clients, they can’t access the latest documents. This leads to delays, more work and frustrated customers’. 

  • Explain what you want to achieve with cloud, in the context of your needs and issues. For example, ‘Moving to a secure cloud platform means the team can see and update documents anywhere, at any time’.

  • Think of what it will mean to achieve your aims. For example, faster project delivery, happier clients and less stress for the team.

  • List what these are, and how you plan to mitigate them. For example, a skills gap in the team may mean you need to plan in time for training.

  • Break down the cloud costs here. For example, subscription fees, storage and backup, migration costs and training. Plus, estimate the cost savings of a cloud solution.

  • List the steps to launch, with realistic times. For example, data migration, testing and go-live.

Chapter 4 - Cloud considerations

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Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 20th November 2025.

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