Episode 23: The history of cloud computing

The evolution of cloud computing is often debated, but this overview breaks down how it began, how it has developed, and where it is heading. Let's explore the origins of cloud technology, the role of the major providers, and why these platforms continue to shape modern IT procurement.

How cloud computing began

Some trace the roots of cloud computing back to the era of mainframes, where large systems could be carved up and shared. But the version recognised today started to take shape in the mid-2000s, when virtualisation technology made it possible to divide physical computers into smaller virtual capacity models.

A turning point came when a major online retailer found itself with large amounts of unused compute capacity during off-peak hours. To increase the return on its investment, the business began selling this spare capacity externally. This became Amazon Web Services, offering infrastructure as a service to anyone who needed it. The model proved to be a smart move, and the industry quickly followed.

The rise of the major cloud providers

After AWS gained momentum, other technology giants recognised the opportunity. Microsoft launched Azure, offering similar services to those introduced by AWS. Google followed with the Google Cloud Platform, making these three the core providers that dominate the cloud market today.

Many familiar digital services now run on these platforms. Their success comes from a combination of competitive pricing, global data centres, strong resilience options, and continually expanding functionality.

What cloud platforms offer today

Cloud computing is now a competitive marketplace. Providers differentiate themselves through pricing, geographic coverage, resilience features, and large catalogues of product lines. Azure alone offers hundreds of service categories covering AI, machine learning, networking, compute and more.

More advanced approaches, such as containerisation, have added further flexibility for organisations that need scalable or modular technical environments.

Where cloud computing is heading

Cloud services will continue to evolve as new technologies emerge. High-cost or highly specialised infrastructure, such as quantum computing or high-security systems, is likely to expand into cloud offerings so more organisations can access them without owning expensive hardware.

Artificial intelligence may also reshape cloud services. Instead of buying software alone, businesses may buy processes or decision-making capabilities delivered through AI as a service.

While the technology keeps changing, the direction remains the same: more capability, more flexibility, and more opportunity for organisations to buy what they need without owning it outright.

For organisations exploring how cloud computing could support their technology procurement decisions, get in touch.