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Azure

What is a cloud provider?

Discover what a cloud provider is and how cloud services support modern apps and workloads.
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An overview of cloud providers

A cloud provider offers on-demand computing services—like storage, networking, and processing power—over the internet. These services let businesses and developers build, deploy, and scale applications without managing physical hardware.

Key takeaways

  • A cloud provider delivers computing services—like storage, networking, and compute power—over the internet.
  • Cloud services help reduce infrastructure costs, improve scalability, and support faster innovation. 
  • Common service models include IaaS, PaaS, and SaaS, offering various levels of control and management. 
  • Cloud providers support a wide range of use cases, including application hosting, AI-assisted workloads, analytics, and DevOps. 
  • Microsoft Azure offers a global cloud platform with built-in security, compliance tools, and flexible service options. 

Cloud provider defined

A cloud provider is a company that offers computing services over the internet. These services include things like servers, storage, databases, and networking—all without the need to own or manage physical hardware. Instead of building and maintaining your own data center, you rent what you need, when you need it, from a provider that handles the infrastructure. 
Cloud providers give businesses and developers access to scalable IT resources. This makes it easier and more affordable to run applications, store data, and build digital services—without the cost of managing infrastructure.

Azure as an example 
One of the largest cloud service providers in the world, Microsoft Azure offers services across computing, storage, networking, machine learning, databases, and developer tools—delivered through the Microsoft global network of data centers. Azure supports everything from simple websites to advanced AI-assisted applications for startups, enterprises, governments, and researchers.

Cloud provider fundamentals

Instead of installing software or spinning up servers manually, cloud providers offer resources through a self-service model. You sign in, configure what you need, and deploy—often in minutes. 

Here’s how it all comes together:
 
  • Services delivered via the internet: Cloud computing gives you access to computing power, storage, and apps from anywhere with a secure connection. 

  • Backed by global infrastructure: Major cloud providers operate physical data centers around the world. These facilities host thousands of servers made available to users through virtualization. This approach allows multiple applications to run on shared hardware, improving efficiency and scalability. Together, these systems make up the cloud infrastructure that supports modern digital services.
     
  • Pricing that adapts to your needs: Cloud providers typically offer a few common billing models: 

    Pay-as-you-go:     You’re billed only for what you use—ideal for variable workloads.
    Reserved instances: Commit to longer-term usage for lower rates.
    Subscriptions: Fixed pricing for consistent services like Microsoft 365 or Azure DevOps.

Cloud deployment environments

There’s no one-size-fits-all model. Depending on your goals, you might use different types of cloud computing environments:
 
  • Public cloud: Services are delivered over the internet and shared across multiple customers. This is the most common model and includes providers like Azure.

  • Private cloud: Built for a single organization, often on-premises or hosted by a third party. Offers more control but requires more management.
     
  • Hybrid cloud: Combines public and private infrastructure, allowing workloads to move between them. 
     
  • Multicloud: Uses multiple cloud providers at once. This avoids vendor lock-in and can improve resilience but adds complexity in management and integration. 

    Each model has tradeoffs in terms of control, flexibility, cost, and complexity. 

Cloud service layers

Cloud providers offer different service layers based on how much you want to manage yourself. These are known as cloud service models, and most fall into one of three categories:

Infrastructure as a service (IaaS)
Access core building blocks like virtual machines, networking, and cloud storage. You manage the OS, apps, and data. The provider handles the hardware. 

A common example of IaaS on Azure is Virtual Machines, which lets you run Windows or Linux in the cloud. You can configure the compute power, memory, and storage to match your workload, then scale as needed. 

Platform as a service (PaaS)
PaaS gives you a ready-made environment to build and deploy apps without managing infrastructure. 

Azure App Service, a popular PaaS example, is used to host web and mobile apps. It includes load balancing, automated updates, and dev tool integration. 

Software as a service (SaaS)
SaaS delivers full applications over the internet. These are ready to use with no setup required. 

Microsoft 365 is a well-known example of SaaS, offering tools like Word, Excel, and Outlook, all accessible through a browser or mobile device. 

Most organizations use a mix of all three, depending on their goals.

Why use a cloud provider?

Using a cloud provider changes how organizations think about IT. Instead of planning for capacity, managing hardware, or waiting on infrastructure, you access what you need—when you need it—through a flexible, global platform. Cloud computing providers help businesses move faster, operate more efficiently, and adapt in real time. 

Benefits of cloud computing
Cloud solution services offer several business and technical advantages that are central to most cloud strategies:
 
  • Cost efficiency
    Shift from capital to operational expenses. Pay only for what you use. 

  • Scalability and flexibility
    Automatically adjust resources to match traffic or usage patterns. 
     
  • High availability and reliability
    Built-in redundancy and failover systems help keep services running. 
     
  • Global reach
    Run workloads close to users through the cloud provider’s distributed network of data centers.

  • Security and compliance
    Leading cloud providers invest in multilayered security, encryption, and regulatory tools. 
     
  • Faster innovation
    Teams can launch and iterate without waiting on hardware procurement or lengthy setup.
Use cases

What are cloud providers used for?

Organizations use cloud computing services in several ways. Here are a few of the most common.

Web and mobile hosting

Cloud platforms offer fast, reliable infrastructure for applications of any size.

Backup and disaster recovery

Automatically store and replicate data across regions to reduce downtime and data loss during outages or cyber incidents.

AI-assisted workloads

Run compute-intensive AI and machine learning models using specialized hardware and scalable infrastructure, without needing to manage it directly.

Big data and analytics

Process, store, and analyze vast amounts of data using cloud-native services.

DevOps automation

Automate code delivery pipelines with built-in tools for continuous integration and continuous delivery.

Cloud migration

Organizations move existing applications, workloads, and data through cloud migration to improve performance, reduce costs, and modernize their infrastructure.

Cloud solutions at work

Healthcare
Health providers use cloud computing to manage sensitive records, streamline operations, and support patient care. For example, GE Healthcare uses Azure to develop imaging tools that help radiologists read scans more efficiently, improving both diagnostic accuracy and speed. 

Finance
Banks and financial institutions use cloud platforms to improve fraud detection, scale mobile apps, and meet security and compliance standards. London-based Metro Bank turned to Azure to modernize its core banking systems while ensuring high availability and data protection.

Retail
Retailers rely on cloud computing providers to deliver consistent digital experiences across devices and geographies. Walgreens uses Azure to personalize customer engagement and support store operations through real-time analytics and connected supply chain tools. Cloud computing providers help organizations across industries respond faster, serve customers better, and confidently adapt to new challenges. 

The future of cloud computing

As organizations become more distributed and data-driven, cloud providers are investing in technologies that make systems faster, smarter, and more sustainable. Here are a few trends already shaping what’s next.

AI and cloud, together 
Cloud platforms now support scalable AI-assisted tools and predictive analytics. Azure offers infrastructure for building and deploying AI workloads with governance and performance in mind.

Greener clouds and sustainable IT
Sustainability is becoming a core part of cloud strategy. Providers are building energy-efficient data centers, investing in renewable energy, and designing services that help customers reduce their own carbon footprint. The sustainability commitments from Azure include a goal to be carbon negative by 2030 and water positive by 2030. 

Edge computing, 5G, and data localization 
By moving processing closer to where data is created, edge computing helps reduce latency. Paired with 5G, it supports real-time applications. Meanwhile, data localization requirements influence how providers manage and store data around the world. 

Why choose Azure as your cloud provider?

Azure offers scale, security, and flexibility for every stage of cloud adoption.
 
  • Built-in security and compliance  
    Azure includes multilayered security, identity protection, and tools for meeting global regulatory standards. 
  • Scalable services across workloads  
    From infrastructure and databases to analytics, AI, and developer tools, Azure supports a wide range of use cases with integrated, enterprise-grade services. 
  • Global reach  
    The Microsoft global network of data centers spans more than 60 regions, helping you meet performance needs and data residency requirements around the world. 
     
Explore Azure services to see what’s possible—or start with a free Azure account.
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FAQ

Frequently asked questions

  • A cloud provider is a company that delivers computing services—like storage, servers, databases, and networking—over the internet. These services are rented on demand, so you don’t have to buy or manage physical hardware.
  • A cloud provider is responsible for maintaining the infrastructure, security, and availability of the services it offers. This includes managing data centers, handling updates, and ensuring resources are reliable, scalable, and secure for customers.
  • A cloud provider must offer secure, reliable, and scalable services. This includes strong data protection, compliance with global regulations, high availability, performance across regions, and tools to help users manage workloads efficiently. 
  • The four main cloud services are: 
     
    • Compute: Virtual machines, containers, and processing power 
    • Storage: Object, file, and block storage for data 
    • Networking: Virtual networks, load balancing, and connectivity 
    • Databases: Managed database services for structured and unstructured data 
     
  • No. Microsoft OneDrive is a cloud-based storage service, not a cloud service provider. It runs on a cloud provider—Microsoft Azure—but is itself an application that lets users store, sync, and share files online.
  • Yes. Microsoft offers a wide range of cloud services through Azure, its cloud computing platform. Azure provides infrastructure, platforms, and software services to support workloads of all sizes across industries.