Cloud Jargon Explained Simply
Cloud Computing | 4 min read
Ever been in a meeting where someone drops cloud terminology and everyone nods while you’re secretly lost? Here’s a plain English guide to the terms that actually matter.
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Cloud Computing
Storing your data or running your software on computers somewhere else on the internet, rather than on your own computer or office server. That’s it. Nothing magical about the “cloud.” It’s just someone else’s computer in a data centre.
Public vs Private vs Hybrid Cloud
Public Cloud
Shared infrastructure run by Microsoft (Azure), Amazon (AWS), or Google. You rent space alongside other businesses. Think renting a flat in a building. Secure, cost-effective, most common choice.
Private Cloud
Infrastructure dedicated solely to your business. Like owning your own building. More expensive, more control. Usually only makes sense for large enterprises or specific compliance requirements.
Hybrid Cloud
Mix of both. Keep some things on your own servers, put other things in public cloud. This is where most businesses end up, whether they planned it or not.
The “aaS” Family
You’ll hear these constantly. Here’s what they actually mean:
IaaS (Infrastructure as a Service)
Renting the basic building blocks: virtual servers, storage, networks. You manage everything that runs on top. Like renting an empty office and fitting it out yourself.
Example: Azure Virtual Machines, AWS EC2
PaaS (Platform as a Service)
Renting a ready-made platform to build and run your applications. You write the code; they manage everything underneath. Like renting a serviced office.
Example: Azure App Service, Google App Engine
SaaS (Software as a Service)
Renting finished software that runs in a browser. You just use it. Like booking an Airbnb instead of buying a house.
Example: Microsoft 365, Salesforce, Xero, Dropbox
Most businesses use SaaS (Microsoft 365, accounting software, CRM) without realising they’re “using cloud.” If you use Gmail or Outlook online, you’re already in the cloud.
Still Confused?
Save this page and reference it next time someone starts throwing cloud terms around. Or just call us and we’ll explain what you actually need.
0151 452 3060Technical Terms That Come Up
Virtualisation
Running multiple “virtual” computers on one physical computer. Like dividing a big house into flats. This is how cloud providers fit thousands of customers onto their hardware.
Edge Computing
Processing data closer to where it’s created (like on your device) rather than sending it to a distant data centre. Faster response times. Relevant for IoT and real-time applications.
Multi-Tenancy
Multiple customers sharing the same software instance. Your data is separate and secure, but you’re using the same underlying system as other businesses. How most SaaS works.
API (Application Programming Interface)
How different software systems talk to each other. Like a waiter taking your order to the kitchen and bringing back your food. You don’t need to know how the kitchen works; the API handles it.
Cost Terms
Scalability
Ability to grow or shrink resources as needed. Busy month? Add capacity. Quiet month? Reduce it. Only pay for what you use.
Egress Charges
Money you pay when data leaves the cloud. The sneaky cost nobody mentions until the bill arrives. Uploading is usually free; downloading often isn’t.
Reserved Instances
Committing to cloud resources for 1-3 years in exchange for lower prices. Good if you know what you need. Risky if you’re not sure.
FinOps
The practice of managing cloud costs properly. Because cloud bills grow if nobody’s watching. Part financial management, part technical optimisation.
Security Terms
Encryption at Rest
Your data is scrambled when stored. Even if someone stole the hard drive, they couldn’t read it without the key.
Encryption in Transit
Your data is scrambled while travelling across the internet. That padlock in your browser address bar.
Zero Trust
Security model that assumes nothing is trustworthy by default. Every access request gets verified, even from inside your network. “Never trust, always verify.”
Shared Responsibility Model
Cloud providers secure the infrastructure. You secure your data and configuration. If you misconfigure something, that’s on you.
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