Cloud Computing and cloud storage often confuses entrepreneurs taking their first steps toward cloud. To make the best use of cloud infrastructure, it’s important to understand the differences between the two. Let’s start with a little bit of imagination.
Imagine you’re working on an important project, and you need a trustworthy platform to store your files. You will upload them to Google Drive. It’s that simple, is it? But, what if you also need a platform to run applications, process huge datasets, or host a website? This is where cloud computing comes in.
API Connects – trusted for data analytics solutions in New Zealand – decided to create this comparison guide to underline differences, benefits, and real-world applications to help you decide which one suits your needs best.
Let’s dive in!
What is Cloud Computing?
Cloud computing is a term used for delivering any service from a computer remotely over the Internet. This computing system primarily consists of servers, storage, databases, networking, software, and analytics. The idea here is that businesses and individuals can rent computing power remotely instead of being limited to whatever power their local servers or personal computers can offer.

Cloud Computing Types
Infrastructure as a Service (IaaS) Provisions for the virtualized computing resources like servers and storage. Examples include AWS EC2 and Google Compute Engine.
Platform as a Service (PaaS): This offers a platform for developers to develop, test, and deploy applications without having to manage the underlying infrastructure. Examples include Google App Engine and Microsoft Azure.
Software as a Service (SaaS): Delivers software applications over the Internet on a subscription basis. Examples include Google Workspace, Dropbox, and Microsoft Office 365.
Benefits of Cloud Computing
Scalability: Turn your applications up or down based on demand safely.
Cost Efficiency: Pay only for what you use, eliminating the need for expensive upfront hardware costs.
Flexibility: Resources can be accessed from anywhere with an internet connection.
Automatic Updates: Manages updates for the user to maintain security and performance, handled by the cloud provider.
What is Cloud Storage?
Cloud storage is the service that allows storage on a remote server and access from anywhere via the internet, thus relieving one from physical storage devices, while ensuring data security and availability.

Types of Cloud Storage
– Public cloud storage is managed by third-party providers that store data accessible across the internet (for example, Google Drive and Dropbox).
– Private cloud storage contains data solely for the one organization using it, thereby allowing greater control and security.
– Hybrid cloud storage is a combination of public and private storage solutions that allows for flexibility and security.
Benefits of Cloud Storage
Data Accessibility: Files can be accessed from any device at any location.
Security & Backup: Protects data loss through automated backups and encryption.
Cost-Acquisition: Significantly reduces investments in expensive on-premise storage solutions.
Collaboration: Real-time file sharing and editing among team members.
Cloud Computing vs. Cloud Storage: Key Differences
Components: Cloud computing involves servers, databases, software, AI, and networks, while cloud storage is restricted to the provision of data storage and backup services.
Functionality: Cloud computing helps run applications, process data, and host websites, whereas cloud storage is used for storing files, sharing documents, and backups.
Examples: In offering cloud computing, we have AWS, Google Cloud, and Microsoft Azure, while under cloud storage come Google Drive, Dropbox, and OneDrive.
Price Structure: Pay-as-you-go refers to charging for cloud computing on the basis of the resources consumed, on the other hand, cloud storage tends to charge depending more on how much storage is being utilized.
How to Choose the Right Cloud Solution?
Cloud computing is the right solution when one has to deal with requirements such as processing power for running applications, working on large datasets, or making services available. Cloud storage offers a better avenue for storing and sharing files. Most businesses implement a combination of both established cloud strategies for their needs.
For businesses that require expertise in cloud computing, partnering with a trusted cloud engineering firm like API Connects can further strengthen the cloud computing processes.
Drop us an email on enquiry@apiconnects.co.nz to speak with one of our engineers and discuss your business objectives.
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