What are the Business Benefits of Moving to the Cloud?

Thinking of a cloud move? See what the NIST terms mean for your business.

Fact-checked Reviewed by Aswin Vijayan Updated November 6, 2026 Based on 1 sources
Summary

NIST defines cloud computing as on demand network access to a shared pool of configurable resources. NIST lists five essential characteristics named on demand self service, broad network access, resource pooling, rapid elasticity and measured service. Every term maps to a business benefit like faster setup and usage based cost. Cloud also brings risks so plan security before you move.

Moving a business to the cloud sounds like a big step. Clear definitions show what you gain and what you still manage yourself.

Definitions follow the NIST guide SP 800-145. Business benefits below are plain readings of those NIST terms and not figures from a survey.

What is Cloud Computing?

NIST states that cloud computing is a model for convenient on demand network access to a shared pool of configurable computing resources. Networks, servers, storage, applications and services are examples. Providers release and provision these resources rapidly with minimal management effort.

Which Business Benefits Come From the NIST Characteristics?

NIST characteristicMeaningBusiness benefit
On demand self serviceUsers get computing time or storage without contacting the providerFaster setup for new teams and projects
Broad network accessServices reach phones, tablets, laptops and workstationsStaff work from many devices
Resource poolingMany customers share provider resourcesProvider carries the hardware
Rapid elasticityResources scale up and down quicklyCapacity follows demand
Measured serviceUsage is metered often on a pay per use basisCosts follow usage

Which Service Models Exist?

  • Software as a Service. Users open the provider applications and manage no infrastructure.
  • Platform as a Service. Users deploy their own applications with provider tools.
  • Infrastructure as a Service. Users provision processing, storage and networking and install their own software.

NIST also names four deployment models. Private cloud serves one organization. Community cloud serves a group with shared concerns. Public cloud is open to the general public. Hybrid cloud links two or more of these clouds.

What should You Check Before You Move?

Cloud does not remove security work. Your team still sets access rules and protects data. See the top security issues in cloud computing and cloud data protection controls before you plan a move.

Review identity and access management in the cloud because access mistakes cause many cloud incidents.

Frequently Asked Questions

What is Cloud Computing?

NIST defines it as a model for on demand network access to a shared pool of configurable computing resources.

What are the Five NIST Characteristics?

On demand self service, broad network access, resource pooling, rapid elasticity and measured service.

What are the Three Service Models?

Software as a Service, Platform as a Service and Infrastructure as a Service.

What are the Four Deployment Models?

Private, community, public and hybrid cloud.

Does Cloud Remove Security Work?

No. You still set access rules and protect your data.

Key Takeaways

  • NIST names five characteristics of cloud computing.
  • Measured service ties cost to usage.
  • Rapid elasticity moves capacity with demand.
  • Three service models and four deployment models exist.
  • Plan access and data protection before you move.

Sources and References

Definitions follow the NIST guide.

  1. NIST SP 800-145 The NIST Definition of Cloud Computing csrc.nist.gov