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What is Cloud Networking and How It Can Help Your Business?

Carolyn Weitz's profile image
Carolyn Weitz
Last Updated: Sep 10, 2025
7 Minute Read
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The IT industry has long relied on local servers and systems for its infrastructure. However, this physical setup occupies significant space and requires individual maintenance and updates. With security being a major concern, businesses must invest extensively in IT infrastructure, maintain each system and server, perform regular backups, and replace obsolete hardware when necessary.

A recent survey revealed that 96% of respondents said their company has been affected by cloud security breaches, highlighting the importance of robust cloud networking solutions.

Cloud Security Challanges

Moreover, IT departments track new updates and software that benefits the systems. Even after substantial investments, businesses need to refresh their equipment every few years. The cost of replacing obsolete hardware is wasteful for corporations and contributes to e-waste generation. This dilemma poses a challenge for company decision-makers: opt for cloud networking or continue with traditional networking.

To address these challenges, many companies have switched to cloud-based networking. This approach reduces security threats and relieves businesses of the burden of regular infrastructure maintenance, as the cloud service provider takes care of everything.

Choosing the right cloud provider is crucial. When connected to a public cloud network, the load balancer distributes traffic evenly among multiple web servers to ensure smooth operation of the IT infrastructure and prevent overloading. Therefore, users must select a reliable cloud network provider that can handle data efficiently.

Read on further to understand the significance of cloud networking and how businesses can benefit from it by opting for Public Cloud Services from a reliable cloud service provider.

Understanding Cloud Networking and its Superiority over Traditional Networking

According to recent estimates, the global cloud networking and computing market size is projected to reach $663 billion in 2024. This growth is driven by emerging technologies such as big data, AI, machine learning, data security, disaster recovery, and compliance requirements.

Cloud networking refers to network services and resources hosted on public or private cloud platforms, managed either on-premises or by external sources. Organizations can utilize the following:

  1. Cloud-Enabled Networking: Some networking resources (e.g., security, maintenance, network management) are hosted in the cloud, while the server remains on-premises. An example is using a cloud-based firewall to protect a non-cloud computer network.
  2. Cloud-Based Networking: All features, resources, and servers are cloud-hosted. An example is moving an in-house application to any cloud server.

Cloud networking technology enables speed and automation while improving overall network performance. As it provides virtual hardware, customers can choose exactly what they need for the task, with effortless upgrading and downgrading. It offers enhanced flexibility, security, and administrative simplicity.

In contrast, traditional networks might provide better security against data breaches initially, but their infrastructure gradually fails to bridge security gaps over time. Traditional networks are slower to use and harder to manage, built on outdated and rigid commands and consoles.

They struggle to meet modern networking requirements such as server virtualization, data center management, dynamic scalability, and handling large network traffic. In traditional setups, when one component becomes obsolete, the entire system may fail due to component interdependence.

Comparison Between Traditional and Cloud Networks:

Traditional NetworkCloud Network
Burdensome to report and troubleshoot due to distributed controlEasy to report threats and troubleshoot due to centralized control
Difficult to manage hardware, requiring a dedicated teamManaged by the cloud provider
Takes up significant space, requires dedicated hardware, and cannot be accessed virtually anytime, anywhereTakes up minimal space and can be accessed virtually anytime, anywhere, with any device
Requires payment for all system componentsPay only for required services
Offers a single security layer initially that becomes obsolete over timeCloud providers offer multiple layers of security that prioritize network packets and keep systems up to date

How Can Your Business Benefit from Cloud Networking?

When using on-premises servers, businesses face challenges like scalability and regular maintenance, where appointing IT support staff and upgrading hardware over time can be costly. Cloud networking technology helps avoid these challenges, with cloud service providers handling routine tasks at a lower cost. Benefits include:

  1. Low Usage Cost: Fewer network devices and costly hardware resources are needed, utilizing virtual routers, software-defined load balancers, and other virtualized network components that can be swiftly upgraded.
  2. Scalability: Cloud networking eliminates the hassle of physically adding or removing IT resources, making it easier for businesses to scale their data requirements up or down as needed.
  3. Flexible Microservice Architecture: Software-Defined Networking (SDN) software receives timely updates and features without disrupting other release cycles and tasks. Updates are free, and users simply agree to update prompts when required.
  4. Fast Deployment: Cloud-managed networking aids in quick rollouts and easy adoption of modern software applications and feature updates, elevating network architecture agility.
  5. Security Support: Cloud providers typically offer multiple layers of firewall to prevent data breaches and malware. Customer data is backed up on separate servers for seamless restoration in case of failure.
  6. Increased Productivity: Employees can focus on core tasks instead of worrying about device maintenance, software updates, and malware protection. Cloud providers handle backups and infrastructure maintenance.
  7. Minimum Downtime: Cloud providers usually schedule weekend maintenance and updates with minimal downtime. Disaster Recovery as a Service (DRaaS) allows data recovery from anywhere, even during maintenance.
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How Does Cloud Networking Work?

Cloud networking is powered by Software-Defined Networking (SDN) technology, which converts proprietary hardware into software running on white-box systems. This approach reduces data center costs and minimizes the need for network devices in branch offices. It eliminates siloed enterprise infrastructure, with more cloud-based routing functions deployed to the cloud.

How does cloud networking works

Companies typically use three types of cloud network architecture:

  1. Built-in Networking Tools: These tools can be easily accessed and are readily available as part of the IaaS service. They help manage and configure the IaaS cloud independently for private and public use. For example, the Web traffic management app ensures that your web applications can handle traffic spikes by creating more nodes with the help of load balancers.
  2. Virtual Networking Applications: These applications are provided virtually in the cloud network for managing networking tasks. They include virtual firewalls and routers. For example, any VPN service or floating IP is a virtual network application.
  3. Multi-cloud Platform Service: This service acts as a bridge between private and public clouds, helping in the network distribution of multiple public cloud providers. For example, we can choose cloud provider 1 for development, 2 for backup, and 3 for data analytics.

Why Should You Choose AceCloud for Network Solutions?

As we’ve explored the transformative power of cloud networking, it’s clear that choosing the right provider is crucial for business success. AceCloud emerges as a standout choice, offering award-winning managed cloud services tailored to SMBs and enterprises.

  1. Load Balancing: Ensuring smooth traffic distribution for optimal application performance.
  2. Virtual Private Networks: Providing secure, flexible connectivity in the cloud ecosystem.
  3. Virtual Routers: Facilitating efficient packet routing between your network and the internet.
  4. Floating IPs: Offering dynamic identity management and traffic distribution.
  5. Public IPs: Enabling seamless communication with external networks.

What sets AceCloud apart is not just its technical offerings but the holistic benefits that come with them:

Why Choose Ace Cloud for Network Solutions

In an era where digital infrastructure can make or break a business, AceCloud Network Solutions offers a compelling proposition. By combining cutting-edge technology with cost-effective pricing, we empower businesses to leverage the full potential of cloud networking. Book a free consultation with a cloud expert today!

Carolyn Weitz's profile image
Carolyn Weitz
author
Carolyn began her cloud career at a fast-growing SaaS company, where she led the migration from on-prem infrastructure to a fully containerized, cloud-native architecture using Kubernetes. Since then, she has worked with a range of companies from early-stage startups to global enterprises helping them implement best practices in cloud operations, infrastructure automation, and container orchestration. Her technical expertise spans across AWS, Azure, and GCP, with a focus on building scalable IaaS environments and streamlining CI/CD pipelines. Carolyn is also a frequent contributor to cloud-native open-source communities and enjoys mentoring aspiring engineers in the Kubernetes ecosystem.

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