Technology
Cloud Storage vs. Cloud Computing: What’s the Difference?
Cloud storage (Image Credit: DepositPhotos)
Cloud storage and cloud computing have become fairly ubiquitous terms. The chances are that if you’ve done any sort of remote correspondence over the last few years, you have probably come across these terms countless times.
Even if you don’t fully understand the concept, you are probably engaging in some sort of cloud storage, file sharing, or computing. Cloud technology has become such an important part of modern computing, to have no experience with it is incredibly doubtful.
What is “The Cloud?”
Before delving deeper into the differences between cloud storage and cloud computing, let’s make sure we know exactly what we mean when referring to “the cloud.”
The cloud, ominous and mysterious as it may sound, refers to a remote server system where a user’s or business’ data is stored. If you own an Apple product, you have probably been prompted endlessly to set up your iCloud account. This service allows you to back up files, such as photos, music, and documents, on Apple’s proprietary server. This takes a lot of the heavy lifting off of your personal computer, creates backups of your files if any system failure occurs, and makes your files available through any computer with an internet connection.
The Difference Between Cloud Storage and Cloud Computing
Now that we have a better idea of what the cloud is, we can look at what cloud storage and cloud computing are and how they are different.
What is Cloud Storage?
Cloud storage is the computing process in which files are stored remotely on a network of external servers. By doing this, cloud storage allows users to accomplish various things that would otherwise be impossible, one of which is cloud file sharing.
If you run a business where the bulk of your employees are working remotely or even just involved in some manner of correspondence that necessitates the swift transfer of files, being able to store and access important documents from wherever you are is a huge convenience. Essentially, your office becomes anywhere you can access the internet.
Another reason you might consider cloud storage is if you are dealing with high traffic and large file sizes. Your resident computing infrastructure may be unable to cope with such demand. And the cost and upkeep of additional on-premise equipment, not to mention the toll of an expanded IT team on your payroll, may prompt you to look for the best cloud storage providers to implement a hybrid cloud solution.
By outsourcing some of your storage to a cloud provider, you can rest assured (in most cases) that your data is in good hands. These providers, be they Apple, Google, Carbonite, Bitcasa, etc., devote vast amounts of resources to making sure your data is safe from system failures as well as hacking.
What is Cloud Computing?
Cloud computing comes in several different forms, ranging from the everyday to the very complex. In its simplest terms, cloud computing allows users to access and use a cloud hosting provider’s software services. It takes data that is already stored in the cloud and enables certified users to access and manipulate that data from wherever they are.
Think, for example, a shared document on Google Docs. The software used as the medium for the data is hosted by Google, as it is not stored in the users’ computers, and data can be added, removed, changed, and tracked in real-time. This allows for greater collaboration and transparency between users. This form of cloud computing is called software as a Service (SaaS).
Cloud computing also comes in the form of workflow management apps like AirSend. AirSend, and its competitors, provide an interface for real-time communication between individuals in a company. It allows file sharing, cloud storage, general and private chat, video and audio calls, and software integration.
In COVID, where users are predominately operating remotely, cloud computing has experienced a considerable increase in popularity. Using standard software that interconnects everyone involved in a project, individual users can collaborate and communicate in real-time. It has drastically reduced the need for people to be in the same room as one another.
Another form of cloud computing is concerned with harnessing a remote computing system’s processing power or specialized applications. For example, a company that is inundated with a vast amount of data may purchase the services of a cloud computing provider to process the raw data into whatever form they need. This takes the load off their local computing infrastructure, which may not handle such a massive influx of information.
The Difference in Cost Between Cloud Storage and Cloud Computing
Comparing the cost of cloud storage to the cost of cloud computing is tricky because there are so many different services provided through cloud technology, and the degree to which they are offered varies based on each client’s needs.
Cloud storage allows you to only pay for what you need, whether five terabytes or 5 petabytes. The critical thing to remember about cloud storage costs is that it is a passive service. One does not have to actively engage with cloud storage for it to provide any benefit. By simply storing your data safely and making it retrievable when needed, cloud storage fulfills its duties.
The same does not go for cloud computing. Cloud computing is only worth the money put into it if its services are being used. In cases where you are utilizing another system’s processing speed for raw data rendering, you often pay for a small time frame of maybe a few hours. This situation should be pretty self-explanatory. However, for services with monthly subscription fees, if cloud computing applications go overlooked, you will be hemorrhaging money for no reason.
For cloud storage and cloud computing, one must also look at the costs they are offsetting. By employing a cloud server to store data, you are reducing the costs of keeping and maintaining local servers. As with cloud computing, you may occasionally need the processing power of a highly sophisticated computer system but not on a regular basis. In this sense, while still costing a fair bit, cloud storage and computing are far less expensive than housing and expanding local systems.
The Future is Cloud
Cloud storage and cloud computing are ubiquitous in today’s business world, but the degree to which they are used is another question. At their most rudimentary levels, their cost is either free or negligible, and they offer great convenience to both the personal user and small businesses. However, as needs increase, cloud services such as cloud storage, cloud computing, and cloud file sharing become more costly and serve a greater purpose in the makeup of a well-functioning company.
Author: Abhishek Bakshi
By Dr. Diane Karusisi, CEO, Bank of Kigali and Dr. Reda Helal, Group Managing Director – Processing, Africa and Co-Head Group Processing, Network International (Image: Supplied).
One of the visible signs of a growing digital economy is its flourishing initiatives for financial inclusion and financial literacy. Rwanda recognizes financial inclusion as a crucial component for realizing its development and economic prosperity and is a remarkable example of a country that is introducing such programs to aid in setting up a vast digital economy, which are increasingly gaining international recognition. The country has set an ambitious target to achieve 90% formal financial inclusion by 2024.
Building inclusivity by involving microfinance institutions, savings and credit cooperatives, and mobile network operators, as well as enabling interoperability in digital payments, play a critical role in ensuring accessibility for populations that have historically been unbanked and rely on cash-based transactions.
Digital transformation
Traditionally, Banks and FIs feel enormous pressure to grow their digital payments penetration in a landscape that is radically different from even five years ago. This pressure is accentuated when Fintechs and wallet operators are added to the mix. Everything from regulatory requirements, a competitive landscape and consumer expectations to product innovations has upended the “business as usual” outlook for digital payment providers. The industry is fraught with challenges that payments leaders must carefully navigate.
Financial institutions are increasingly recognizing the importance of digital transformation and access to data. A legislation on the protection of personal data and privacy that was passed in October 2021 serves as a foundation for enabling trusted and secure domestic and international data flows and maximising the economic and social benefits of data-driven technologies, such as artificial intelligence (AI), for businesses and individuals in Rwanda.
The Bank of Kigali is an interesting example of a financial institution that has transitioned from traditional banking processes and payments to a structured digital platform. Embarking on a digital journey four years ago, the bank introduced several measures including internet banking and a mobile app, ISO standardization, and cyber resilient systems tuned to ensure the safety of customers’ data while enabling digital transactions through mobile phones.
Internet penetration in Rwanda stood at 30.5 percent of the total population in January 2023, with 4.25 million internet users. Incidentally, the ownership of smartphones in Rwanda stands at 26.7 per cent among men and 21 per cent in women respectively, according to the 2022 Rwanda Population and Housing Census, with the number of mobile phone users standing at 11.7 million in June 2023. Mobile phone penetration of 87 percent has consecutively increased the interest in digital payment solutions.
With the surge in mobile usage and e-commerce within the country, it is natural for banks to respond to the momentum and strengthen their digital economy payment services. The Bank of Kigali, for example, sought the advisory services of Network International (Network) to understand how to enhance and structure their product offering to cater to evolving customer behavior.
Network has been at the helm of accelerating digital transformation and has extensive experience in revolutionizing digital finance in the region with a deep understanding of digital payment offerings and technology usage. Network, using generational artificial intelligence and machine learning technologies, as well as market knowledge and data utilization, helps the Bank generate informed business decisions to refine their services proposition in accordance with consumer spending trends.
Threat landscape
In a rapidly evolving digital payments landscape, the threat of fraud looms large. According to TransUnion Africa, digital transactions in financial services surged by 12.2 per cent during the first half of 2023, and the alleged rate of suspected digital fraud attempts for transactions from Rwanda in financial services increased 252 per cent year-over-year (YoY) – the highest rise among industries analyzed. The Rwanda Investigation Bureau reported 254 cases of cybercrime involving up to RWF 416 million in 2021. While fintechs and other new stakeholders in the environment pave the way to superior banking services, they also ensure to bolster their systems with strategic analysis and secure data management systems to counter sophisticated fraudulent activity.
In this regard, Network supported Bank of Kigali with an authorization strategy with detailed analysis focusing on authorization diagnostic, data and fraudulent transactions. Based on the findings of this analysis, Network provided recommendations to aid the Bank in improving operational efficiency, reducing risks, and accelerating growth.
Advanced tools and technology leave no room for error or vulnerabilities, in an environment that is seeing a growing dependence on mobile wallets, digital-only banking platforms, and contactless payments, which fosters adoption of digital payment solutions between merchants and consumers. This security allows for convenient access to digital payment services which include remittances, timely purchases, e-commerce and small businesses promotions, insurance payouts and more.
By enabling innovation and operational efficiency for financial institutions, Network International contributes to government-led financial inclusion initiatives and supports the sustainability of commerce among the masses.
Lisk Chief Project Officer, Dominic Schwenter (Image: Supplied).
With nearly a million developers, a flourishing cross-industry entrepreneurial mindset, and a remarkable surge in blockchain adoption, Africa’s ability to lead blockchain technology impact is undeniable. Yet, technology entrepreneurs face barriers like limited access to finance and expert mentorship. Lisk’s Blockchain Incubation Hub intends to solve that issue.
Lisk is a fast and scalable Layer 2 (L2) network secured by Ethereum. As a member of the Optimism Superchain, Lisk provides builders and users some of the cheapest fees possible in the Ethereum ecosystem (currently sub 1 cent) and is actively contributing to the larger Superchain mission of onboarding the next 1 billion people to Web3. Lisk’s strategic decision to focus on emerging markets stands as a testament to its commitment to innovation and inclusivity. By prioritizing these regions, the team acknowledges the transformative potential they hold for the global community.
Dominic Schwenter, Chief Project Officer at Lisk, speaking of the incubation program, said “As an established infrastructure project, that has long focused on making Web3 technologies more accessible to builders and users around the world, we fully understand the tremendous opportunity the African continent represents for the future of the blockchain industry. By working with established partners such as CV Labs and its VC pillar, CV VC, we intend to bring our mutual excellence to support African pioneers who harness ingenuity to empower their communities. Blockchain is the engine for propelling local economies across the continent and we are well aware of the great quality of the developer community in Africa. There’s no one better to solve challenges than local developers, founders, and entrepreneurs“.
CV Labs is a renowned blockchain accelerator and ecosystem builder within the Web3 space. CV Labs is a business pillar of CV VC, the Swiss headquartered blockchain venture capitalist. Lisk and CV Labs both originate from the world’s most mature blockchain hub – Crypto Valley. Each has local and active teams on the ground in Africa, committed to harnessing Africa’s ability to drive the future of the web – one that enables data transparency, new economies, and, most of all, a better way of interacting and transacting for Africans.
Gideon Greaves, MD of CV VC Africa, said “Our experience in creating interconnectedness among our African and global portfolio companies is a bedrock for their growth. As Africans ourselves, we are very excited to empower the Lisk Blockchain Incubation Hub with our ecosystem pillar CV Labs, leveraging local insights and global understanding for maximum impact. Importantly, CV VC’s investor-focused curation will support the appropriation of grant funds to ensure projects with impact and utility succeed”.
African nations are among the strongest adopters of cryptocurrencies, utilizing them both as a store of value, payment, and exchange purposes. Concurrently, the technology behind crypto, blockchain itself, is increasingly important in other ways for Africa due to its immutability which can address longstanding issues such as corruption, lack of transparency, and inefficiencies in sectors like finance, supply chain, and governance.
Builders on blockchain technology can enhance trust, promote financial inclusion, enable secure transactions, and streamline processes, particularly in regions with unreliable infrastructure and weak institutions. Additionally, blockchain can support individuals by enabling access to financial services and property rights, fostering their socioeconomic growth, and unlocking new opportunities.
Despite restricted global funding, technology ecosystems in Africa are emerging, and 15 African countries feature in the Top 100 Global Ecosystems. As Africa accounts for nearly 20% of the global population and a median age of 18.8 years, the continent’s youthful demographic presents a potent force for innovation. While 77% of VC funding in Africa comes from outside the continent, The Lisk Blockchain Incubation Hub is committed to enabling African entrepreneurs to achieve self-fulfilling revenues and new funding sources by becoming market-ready with viable products that meet African needs.
EMURGO Africa, the investment and commercial arm of Cardano in Africa, today announced the launch of EMURGO Labs, a dedicated development entity for emerging Web3 technologies. The Labs is designed to support the growth of established and nascent Web2 and Web3 organizations. EMURGO Labs is set to spearhead the digital transformation across borders, leveraging the transformative power of the Cardano blockchain.
This will will serve as the central hub for fostering the growth of both established and burgeoning Web2 and Web3 organizations throughout the region. By leveraging the unparalleled power and potential of the Cardano blockchain, EMURGO Labs aims to empower innovation, facilitate cross-border expansion, and contribute to the overall expansion of the global blockchain ecosystem.
“The launch of EMURGO Labs marks a significant step forward in our mission to unlock the transformative potential of blockchain technology in Africa, Middle East and GCC,” said Ahmed M. Amer, CEO of EMURGO Labs. “Through comprehensive support services, strategic partnerships, and industry-leading expertise, I am confident that EMURGO Labs will become the premier destination for Web3 ventures seeking to thrive in this dynamic region” added Amer.
EMURGO Labs is dedicated to delivering a broad spectrum of services, meticulously designed to meet the evolving needs of the digital era, enabling organizations to seamlessly migrate from Web2 to Web3 while also enhancing and expanding the capabilities of already established Web3 entities.
- Blockchain Solutions Development: Partnering with global enterprises, startups, and accelerators, EMURGO Labs is at the forefront of investing in and developing groundbreaking blockchain solutions with real world use cases
- Custom Software Development: Tailored software solutions are crafted to drive digital transformation, propelling enterprises into the future.
- UI/UX Design: With a focus on user-centric design, The Labs ensures intuitive user experiences and sleek interfaces for Cardano blockchain applications, setting a new standard in usability and aesthetics.
Aiming to engage a broad spectrum of stakeholders, from Web2 and Web3 startups, banks, and large corporations to governments and the wider business community, The Labs is strategically positioned. By appealing to investors, blockchain enthusiasts, media, and policymakers, it is poised to become a pivotal player in the global blockchain ecosystem.
-
Op-Ed2 days agoSam Tayengwa: Navigating the Future of Insurance in Africa
-
Corporate Citizenship2 days agoHuawei 2024 ‘Seed for Future’ Programme Kicks off in Kenyan Tertiary Institutions
-
Press Release34 mins agoTelCables’ Partner Program is shaping the future of digital connectivity in West Africa