cloud computing let companies run software, storage, and compute over the internet instead of owning servers
AWS (2006) pioneered the shift, followed by Azure, Google Cloud, and specialized platforms
on-demand resources replaced large upfront hardware costs
startups scaled to global audiences instantly; enterprises modernized IT
cloud became the backbone for mobile apps, streaming, e-commerce, AI, and SaaS
today, cloud infrastructure underpins most of the digital economy

What Drove the Transformation

shared infrastructure made computing cheaper and usage-based
elasticity allowed apps to scale from a few users to millions without new hardware
global data centers enabled instant worldwide distribution
APIs and turnkey services (databases, storage, auth, analytics) boosted developer productivity
SaaS and subscription models emerged, replacing installed software
smartphones + cloud backends powered social media, ride-sharing, messaging, and streaming
enterprises migrated to reduce cost, increase agility, and retire legacy systems
hybrid and multi-cloud architectures improved resilience and flexibility

The Economic Lessons

moving from fixed costs to variable costs unlocks innovation and experimentation
infrastructure shifts create the biggest technology booms by lowering barriers to building
cloud-native companies gain speed, global reach, and operational leverage
platform lock-in creates durable moats for AWS, Azure, and GCP
foundational infrastructure (compute, storage, networking, data) drives downstream industries like AI, SaaS, and digital media
cloud is now the economic base layer of the modern internet, and those who master it gain long-term scale and defensibility

Cloud Computing Adoption (2010s)