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What is a Cloud Service Provider?

A cloud service provider is a company that provides cloud-based services to clients, primarily through an on-demand system. What is a Cloud Service Provider?They are becoming increasingly popular due to the perceived advantages they offer regarding cost, accessibility, and scalability.

Depending on its particular business model, a cloud provider may offer a wide spectrum of solutions, such as:


  • Software as a Service (SaaS):  Clients license software on a subscription basis and normally access it via their web browser. It is commonly used by businesses to provide payroll processing, accounting, customer relationship management (CRM) and content management (CM) solutions.
  • Infrastructure as a Service (IaaS): Computer infrastructure such as hardware, servers, and data center space are delivered to clients who wish to outsource these services.  Virtual computers, storage, and servers may also be included.
  • Platform as a Service (PaaS): A unified service consisting of IaaS and SaaS combined.

A company may be classified as public, private, hybrid, or community cloud providers, depending on the range of services offered.


Cloud providers are becoming more widely used by businesses and private individuals alike because they deliver benefits like the following:

  • Cost savings: Outsourcing cloud-managed services keep network maintenance costs low, especially in companies that are not large enough to support a full-time IT department. They can also integrate a client’s existing business practices and policies to ensure that a network is maintained in accordance with the company’s goals.
  • Keeping a company current: Migrating to the cloud is a solid way to future-proof enterprises like data centers, as any time an upgrade is released or technology changes, it is all instantly available. There is no need to buy or install software or train IT staff: the cloud service provider does it all.
  • Flexible service options: Most cloud providers tailor their offerings to individual client requirements. They offer pay-per-service or payment plan arrangements, which frees up the money businesses need to support growth.
  • Centralized applications and servers: All mission-critical processes are managed at one central data center, enabling remote network users to access centrally stored data within the same network.
  • Faster disaster recovery: Cloud providers offer the resiliency and redundancy needed to maintain business continuity if disaster strikes. Client data will be secure across multiple cloud environments, minimizing any adverse impact.
  • Fast response times to emergencies: Cloud provider technicians will monitor and repair any client network issues remotely, which is more efficient than locating and dispatching an onsite technician.

Bottom Line

Cloud computing offers many benefits to modern businesses. Employees can connect to company data at any time, and important files remain accessible even when disaster strikes, so that service interruption is minimal. Thanks to cloud service providers, the price of doing online business is now surprisingly affordable.



Does your data center offer a wide range of cloud solutions to clients? If so, which ones appear to meet the greatest number of client needs? Let us know your thoughts in the Comments box below.



To learn more about cloud service providers, download the webinar recording, “Webinar Best Practices for Data Centers and Cloud Service Providers.”

Watch "Webinar Best Practices for Data Centers and Cloud Service Providers" (Webinar Recording)