Cloud storage vs. cloud computing
All companies today are under pressure to find the best software and services for their tech stacks, and tools like cloud computing and cloud storage are key for many organizations when it comes to digital transformation. While these two terms are often used interchangeably, they’re actually two distinct concepts that complement each other.
To help you choose the right solution for your organization, let’s explore the definitions and differences in cloud storage vs. cloud computing.
Key takeaways:
- When it comes to cloud storage vs. cloud computing, the distinction lies in their purpose: Storage serves as a repository for data, while computing enables you to run applications and process data
- Both cloud services are scalable, cost effective, and can streamline business operations, providing flexibility to accommodate growth and increased demand
- Box provides an integrated solution, combining both cloud computing and storage, to enhance productivity with secure collaboration, seamless integrations, and enterprise-grade security
What is cloud storage?
Cloud storage is a service that allows you to save, access, and manage digital data through online networks rather than on a local device or physical server. It’s a virtual space where you can upload and access files like documents, images, and videos from any device using cloud-based servers.
Many businesses use cloud storage solutions to manage important documents and share them with employees and stakeholders. In fact, the cloud has become a solution for reducing the complexity of business content management. According to a Box-sponsored IDC white paper, 39% of organizations say that difficulty finding data or documents is one of the biggest challenges preventing them from working as efficiently as possible.
Check out our guide to enterprise cloud document storage.
What is cloud computing?
Cloud computing is the use of computing services such as storage, processing power, and software, provided through remote servers, enabling you to access and manage resources without relying on physical hardware. It’s like renting computing power and resources over the internet. Instead of relying solely on your own computer’s hardware and software, you access services from remote servers maintained by a third party provider.
Many businesses use third party cloud computing services to perform specific business functions. These services typically follow a pay-as-you-go (PAYG) pricing model, where your subscription fee covers key infrastructure like servers, applications, databases, and storage.
What is the difference between cloud computing and cloud storage?
Cloud storage is for data, while cloud computing is for processes. Essentially, storage in the cloud simply holds your data, while computing in the cloud allows you to do things with that data — such as analyzing information, generating reports, or automating digital workflows.
Understanding the comparison of cloud storage vs. cloud computing can help you determine which solution would work best for your business and why. Let’s take a look at the key differences between them.
| Aspects | Differences between cloud computing and storage |
| Application | Most cloud computing programs are specifically designed for business use, while cloud storage is equally useful for both professional and personal needs. |
| Value | Cloud computing applications are active services, meaning you get value from the server as you use it. Cloud storage, on the other hand, is passive. All you need to do is choose a service with the right cloud storage capacity and add your data to it |
| System requirements | Computing requires significantly more processing power than storage. Because computing solutions are generally web-based, they also require less hard drive space than cloud storage, which may require you to download additional software. |
| Interdependency | Cloud computing and storage work together: Storage relies on computing for processing data, and computing depends on storage to access, hold, and manage the data it works with. |
| Features | Storage solutions typically include features like data backup, encryption, and easy sharing, while computing provides on-demand computing power, application hosting, and real-time data processing. |
Similarities between cloud computing and data storage
Cloud storage and cloud computing both involve external servers, which can be anywhere. Cloud infrastructure allows organizations to perform key business functions without needing to invest in internal server infrastructure, which is why the cloud is so cost effective and efficient.
Both are also highly scalable, which is one of the biggest benefits of using cloud systems. Most cloud service providers use a tiered subscription-based pricing model, so you can choose the service plan that best suits your business needs. When your company grows and you need more storage space or processing power, you simply upgrade to the next tier. Because the process takes place over the internet, you can have a new plan in just minutes.
Discover the stages of the cloud adoption journey.
Cloud storage examples and use cases
Cloud storage has both professional and personal applications.
| Cloud storage use cases | Examples |
| Website hosting | Website hosting services store all your media, posts, and other site data in their cloud databases, so that content is readily available when you need to co-edit a post or when a user lands on your site. |
| File sharing | Organizations use cloud storage to save their documents and share them with collaborators like employees and business partners. By having the right credentials and following link sharing best practices, authorized users can securely access and download your files online from anywhere in the world. |
| Virtual desktop hosting | Virtual desktop infrastructure (VDI) is helpful for companies with large distributed workforces and bring-your-own-device (BYOD) policies because it provides additional security for business data. VDI stores all of a user’s desktop information as a virtual machine (VM) in the cloud, reducing server maintenance and overhead costs for your company. |
| Online backups | You can create an additional copy of your mission-critical business data and store it in the cloud. You’ll be prepared for outages, natural disasters, and other emergencies that could halt your operations. Many cloud backup solutions automate the process, keeping your data always up to date when you need it. |
Check out our guide to cloud backup for small businesses and prepare for growth.
Cloud computing examples and use cases
Like cloud storage, cloud computing has virtually endless applications. Below are some common cloud computing examples.
| Cloud computing use cases | Examples |
| Cloud-based communication platforms | When you send an email using a service like Gmail or Microsoft Outlook, your message and attachments are stored in the cloud before arriving in the recipient’s inbox. Messaging platforms like Slack and WhatsApp also use the cloud to store conversations and media, letting users access previous messages and files through the application. |
| Software as a service (SaaS) | Ranging from e-commerce to video conferencing, these SaaS applications often offer desktop or mobile apps for convenience, but for the most part, you can accomplish your tasks from a web portal. Many cloud computing services also offer cloud app integration with other platforms to streamline the experience and increase productivity. |
| Remote data analytics | Companies can perform data analytics off-site through cloud-based analytics applications. Most cloud computing solutions provide user-friendly interfaces, allowing you to easily generate detailed reports and create visualizations of data to share with relevant stakeholders. |
| Website content | When someone visits your website and engages with your content, cloud computing powers the interaction. Cloud storage supports large file hosting on your website, but you need cloud computing to make that content usable. For example, in video streaming sites, all the video content is stored in the cloud, but when a user clicks on a video, cloud computing operations run in the background to access the data and play it. |
| Business management platforms | Business management platforms provide larger organizations with powerful tools that house your organization’s data in one centralized place so stakeholders can access the information they need to make informed business decisions quickly and efficiently. Common examples include customer management systems (CMS), enterprise resource planning (ERP) software, and Intelligent Content Management platforms. |
Benefits of cloud storage
According to Pluralsight’s State of the Cloud report, 94% of organizations are already in the cloud, indicating rapid adoption of new cloud services by businesses. Cloud storage offers benefits for businesses of all sizes, especially those that create and manage large amounts of data.
Let’s review the benefits of cloud storage.
Data protection during disasters
Blackouts and disasters can disrupt data, leading to downtime and potential financial losses. Storing files in the cloud with backups ensures redundancy, so you have an extra copy if the original is lost. Cloud access is fast, streamlining the execution of any disaster recovery plan by enabling you to simply recover your backup data.
Enhanced data security
Cloud storage providers offer robust cybersecurity measures like file encryption, zero-trust architecture, and intelligent threat detection to prevent malicious actors from stealing your information. Even if an attacker manages to get past the first line of defense, controls like multi-factor authentication (MFA) and password protection keep your data secure from harm. Look into each provider's features to properly navigate the cloud security threat landscape.
Flexible storage capacity
The primary purpose of cloud storage services is to expand your capacity beyond what your company’s servers and individual devices can provide. It helps you free up room on your internal drives, giving you the peace of mind you need to create and edit content with confidence. Since cloud storage is scalable, you can choose the storage plan that best fits your company’s needs, paying for the cloud storage you’ll actually use.
Reduced operational costs
Legacy data centers work to fulfill the functions you need to perform, but they’re costly to staff and maintain. Using cloud storage can help you cut data costs with a flexible solution that fits your business’s specific needs. Without the need for in-house infrastructure, you can save money on ongoing costs like upgrades, cooling, and IT staffing.
Benefits of cloud computing
Fortune Business Insights projects the cloud computing market size will grow from $676.29B in 2024 to $2.29T by 2032, with a compound annual growth rate (CAGR) of 16.5% from 2024 to 2030. Cloud-based tools help organizations improve productivity and efficiency by empowering better business decisions.
Explore the top benefits of cloud computing for your business.
Easier collaboration
Cloud computing tools remove barriers to communication and collaboration that are common with traditional computing methods, such as issues with sharing and accessing documents across different devices and locations.
These solutions also enable multiple users to work on one file simultaneously, offering document version control to manage multiple versions of a file while maintaining file integrity.
Simplified remote work
Cloud computing technology is a key component of remote work enablement. Remote workers need to access their work files from their locations, whether they’re at company headquarters or their home office. Because cloud computing services let users access, edit, and upload files to one centralized location, employees can get tasks done from anywhere, relying on cloud sync solutions that keep documents up to date and accessible in real time.
Better content and app management
Getting work done quickly is difficult when your files are scattered and disorganized. Cloud computing services facilitate content and app management because everything is housed under one roof. Many services include advanced features like artificial intelligence (AI) and machine learning (ML), which make it easier to find the information you need by linking related data together.
Planning your enterprise AI strategy? Review the key steps to get started.
Cloud computing vs. cloud storage: Which one do you need?
Cloud computing and cloud storage can’t exist without each other, as both are essential for different aspects of data management and processing. Cloud computing lets you access and use the stored data, while cloud storage provides a place for you to hold that data until you need to use it.
Cloud storage services are the better option if you only need additional space to store files and backups. Look into cloud storage if your company’s workforce is largely remote. Having your data in the cloud makes it available and accessible to all your employees, whether they’re in the office or working from home.
Businesses that need more complete solutions typically opt for cloud computing services. For example, digital asset library software uses cloud computing to manage assets in real time, track usage, and automate updates — all critical processes for streamlining asset management and ensuring efficient workflows. Authorized users can access a centralized database, providing full visibility and control across the organization.
As most cloud service providers specialize in one or the other, it’s important to recognize which solution best fits your needs before making a choice.
| Go with cloud storage solutions when you: | Go with cloud computing solutions when you: |
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Understand what digital asset management is and how it benefits your organization.
Combine the best of cloud computing and storage with Box
Box offers a comprehensive platform that enables you to manage the entire content lifecycle: file creation, sharing, classification, retention, and so much more. As the leading Intelligent Content Management platform, Box makes it easy for you to collaborate on files with your team, clients, or partners, both inside and outside your organization.
With enterprise-grade security and compliance integrated into our platform, you can rest assured that your content is fully protected. Plus, with 1,500+ seamless integrations, Box creates a unified content layer to empower you to work however you need.
Intelligent Content Management from Box makes workflows more efficient while productivity levels rise across all teams in the organization.
You don’t need to decide between cloud storage and cloud computing — contact us today to get the best of both with Box.
While we maintain our steadfast commitment to offering products and services with best-in-class privacy, security, and compliance, the information provided in this blog post is not intended to constitute legal advice. We strongly encourage prospective and current customers to perform their own due diligence when assessing compliance with applicable laws.