Cloud platform: definition, benefits & practical examples

How sustainable is your IT really when hardware becomes obsolete quite quickly and your team demands ever greater performance? A cloud platform can help here: It can be scaled in both directions and offers enormous efficiency advantages. Here you can find out why cloud platforms are increasingly becoming the linchpin of successful IT strategies — and how you can use them to make your company fit for the future.

13.4.2025

8

min read
Author
Denis Gomes Iljazi
CEO & Co-Founder Axisbits GmbH
Contents
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What is a cloud platform?

A cloud platform is basically an IT infrastructure and software that you can use over the Internet. You don't have to worry about hardware, maintenance, or updates yourself. Think of it as a external data center on demand: Instead of running your own servers in the basement, you simply access resources that are managed by a cloud provider.

The core of the idea: You rent storage, computing power, software and services according to your current needs. If you want more services in the short term, you can add this. If you need less, reduce capacity again.

Difference from cloud software and cloud computing

cloud computing is the generic term for what many companies use every day: IT services such as storage, computing power or applications via the Internet instead of on their own servers. You can think of it like a modern supply network — you tap into exactly what you need right now without having to operate the infrastructure yourself.

The technical basis for this is formed by so-called cloud platforms. In a sense, they are the foundation: This is where the servers, networks and services run, which keep everything running.

On this foundation, companies can then Cloud Software use — i.e. ready-made applications that run directly via the browser, such as an online CRM or a cloud-based accounting tool.

This software is a direct, tangible application of the cloud principle: It works without you having to worry about installation, updates, or maintenance.

In short: Cloud computing is the big picture, cloud platforms are the basis, and cloud software is what you actually use as a user.

How does a cloud platform work?

When you work in the cloud, you connect to a virtual system via the Internet. Your provider takes care of:

  • Hardware management: Servers, networks and storage are operated and maintained centrally.
  • Security and updates: Security updates, bug fixes, and new features run automatically in the background.
  • Scale: If necessary, you can immediately activate or deactivate additional resources.

This works so smoothly because the cloud provider operates huge data centers that are available around the clock. With the help of so-called virtualization technologies These data centers are divided into many virtual units that you and other customers can use.

What are the benefits of cloud platforms?

  • costs: You only pay for the resources that you actually use. This not only saves acquisition and maintenance costs, but also ensures easy to calculate IT budgets.
  • scalability: RAMPING UP WHEN DEMAND RISES OR REDUCING WHEN THERE IS A DOWNTIME — the cloud adapts to your business.
  • Flexibility: Cloud platforms often offer ready-made building blocks (e.g. databases, development tools, AI services) that you can integrate into your applications without much effort.
  • Quick innovation: Your developers get immediate access to new technologies, updates and security features because they are available directly on the platform and don't have to be incorporated locally by you first.
  • Location-independence: No matter where your employees are — with an Internet connection, they have access to the platform without detours. This makes mobile working and global collaboration easier.

What types of cloud platforms are there?

  • Infrastructure as a Service (IaaS): You use virtual servers and networks from the cloud, so to speak. The hardware layer is run for you, you only care about operating systems and applications.
  • Platform as a Service (PaaS): Here, the cloud provider provides you with a complete platform for development, testing and deployment. You focus on your product without having to manage servers or middleware yourself.
  • Software as a Service (SaaS): You use ready-made software over the Internet, such as email services or CRM systems. Updates and maintenance are provided by the provider.

Private, public, and hybrid clouds:

  • Private cloud: A cloud that is just for your business, often on dedicated hardware.
  • Public cloud: Common environment available to many companies (e.g. AWS, Azure, Google Cloud).
  • Hybrid cloud: Combination of both variants, e.g. to keep sensitive data local and other applications run in the public cloud.

What else should you know?

Make sure that your provider's cloud platform meets all data protection and security standards relevant to you. For companies in particularly regulated industries, it may also be useful to continue to keep certain data in protected environments.

Tools to automate deployments, test runs, and monitoring are often already integrated in the cloud. This saves you valuable time and reduces human errors.

Also find out about various pricing models:

  • Pay-as-you-go (use as needed): You only pay for the resources you actually use, with no long-term commitments or upfront payments.
  • Subscription model: You pay a fixed monthly or yearly amount, regardless of usage, often with a fixed amount of resources.
  • Reserved instances: You book certain resources for a longer period of time (usually 1 or 3 years) at a discounted price, which is particularly useful for stable, long-term use.

Examples of cloud platforms

Amazon Web Services (AWS):

AWS is one of the pioneers in cloud business and offers a huge range of services: from storage (S3) to machine learning tools to serverless computing (AWS Lambda). The variety of services and global availability are particularly attractive.

Microsoft Azure:

Azure stands out above all for its seamless integration with Microsoft products such as Office 365 and Windows Server. Anyone who is already heavily involved in Microsoft technologies will often find an easy start here.

Google Cloud Platform (GCP):

GCP's strength includes data analytics and machine learning. Services such as BigQuery or Cloud AI platforms are particularly interesting for data-intensive applications.

Salesforce:

Salesforce offers a cloud platform that runs CRM applications and numerous additional services related to sales, marketing and customer care. Here, you don't have to worry about the infrastructure or updates.

Value of cloud platforms and in-house developments

Cloud platforms give companies of all sizes enormous flexibility through the right mix of scalability, security and cost control. They make many things possible that were not possible or were very expensive with specially operated hardware.

However, if the available options offered by cloud providers are not enough for you, you are striving for your own solution or want to switch to the provider's side, we at Axisbits can help you. As a full-service agency with many years of experience in developing online platforms, Axisbits covers all areas needed for your successful project.

Here you can find our Guide to creating your own online platform and their expenses. If you already have a project idea on the table Get in touch with us!

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