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Computing resources or software provided over a network, rather than run solely on the user's own device.
A provider pools infrastructure and makes resources available to customers under a service agreement. Customers can often change capacity as demand changes. The division of responsibility varies: renting a virtual machine leaves more configuration work with the customer than using a managed application. Charges can include processing time, storage, requests or transferred data, so reduced hardware purchasing does not mean costs disappear.
Suppose a hypothetical online shop needs ten units of processing capacity normally and thirty during a two-hour sale. At an assumed J$100 per unit-hour, the extra twenty units cost J$4,000 for those two hours. Buying enough permanent capacity for the peak would create a different cost structure. This simplified example excludes storage, networking and other charges, and is not a provider's actual price or a claim that renting is always cheaper.
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