Cloud computing provides several advantages, including scalability, flexibility, lower operational costs, and fast connectivity. Businesses can access a wealth of hardware resources and services over the internet, allowing them to scale their IT infrastructure as needed and only pay for what they use. Additionally, cloud vendors manage many equipment and software tasks, which can lead to reduced operational expenses and increased IT resources for innovation.

While cloud computing offers many benefits, there are challenges to consider, such as vendor lock-in, complex pricing structures, and reliance on internet connectivity. Businesses may find it difficult to migrate workloads between providers due to varying service types and pricing. Additionally, understanding the total cost of ownership can be complicated, and any disruptions in internet connectivity can impact access to cloud services.

The cloud market has transformed significantly since its inception. Major providers like AWS, Microsoft, and Google have expanded their offerings from basic infrastructure services to a wide range of sophisticated tools, including AI and machine learning services. As of Q1 2024, AWS holds 31% of the global cloud market share, followed by Microsoft at 20% and Google at 13%. This evolution reflects a shift towards packaged applications and services that streamline IT operations and enhance business capabilities.