Cloud Infrastructure Explained: Types, Components, and Benefits

Cloud infrastructure forms the invisible backbone of the modern digital business environment. From e-commerce storefronts to global supply chain systems, nearly every modern platform relies on a flexible, scalable foundation of virtualized resources, including computing power, data storage, and networking. This shift away from on-premise infrastructure has enabled companies to build faster, operate more reliably, and scale on demand without the complexities of maintaining physical hardware and software resources in-house.

This transformation is especially evident in technologies like cloud-based electronic data interchange (EDI), where cloud architecture eliminates bottlenecks created by many legacy systems. Cloud EDI also makes it easier to onboard new trading partners, manage integrations, and ensure real-time data flow across systems. Whether powering a startup or streamlining a Fortune 500 supply chain, cloud infrastructure has become a baseline requirement for doing business in a connected world.

What Is Cloud Infrastructure?

Cloud infrastructure refers to the combination of hardware and software components that power cloud computing environments. Ranging from physical servers and networking equipment to virtualization software and application programming interfaces (APIs), these components deliver scalable services over the internet and private cloud architecture. Unlike traditional on-premise systems, cloud infrastructure decouples computing from physical machines, making it easier to allocate and scale virtual resources as needed.

Whether migrating from on-premise infrastructure or starting out in the cloud, the right setup can offer you improved speed, reliability, and performance. That’s why platforms built for modern supply chains, like EDI integration with NetSuite and QuickBooks from Orderful, depend on cloud environments to ensure seamless connectivity. 

Choosing between on-premise and cloud-based systems is a strategic decision. As more companies embrace virtualization, cloud infrastructure plays a critical role in enabling flexible, scalable, and secure operations that align with modern business needs.

Key Components of Cloud Infrastructure

Cloud infrastructure comprises several interconnected elements that work together to deliver computing resources in a virtualized environment. Each component plays a specific role in maintaining speed, scalability, and availability for digital operations.

Computing Resources

These include physical servers, virtual machines, and virtualization software that provide the raw computing power to run applications and services.

Storage Systems

Cloud data storage is typically delivered through a combination of object, block, or file storage. These solutions handle everything from long-term backups to real-time access for cloud applications and databases.

Networking Equipment

Load balancers, routers, firewalls, and DNS servers manage data flow within the cloud infrastructure. These elements help ensure fast, secure connections across distributed environments.

Software and Management Layers

Operating systems, API integrations, and infrastructure management software help allocate virtualized resources efficiently. They also serve as the backbone for cloud service platforms that support modern integration workflows and applications.

Together, these components provide the foundation for a resilient cloud computing infrastructure capable of supporting everything from startup websites to enterprise-scale data centers.

Types of Cloud Infrastructure

Cloud infrastructure comes in multiple deployment models, each offering a different mix of control, cost, and scalability. Understanding the differences between these cloud infrastructure types can help organizations choose the right environment for their technical and business needs.

Public Cloud

Public cloud infrastructure is owned and operated by third-party cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These providers offer access to computing power, storage, and networking over the internet, often through a pay-as-you-go model. Public cloud services are highly scalable and cost-effective, making them ideal for businesses that want to avoid the overhead of maintaining physical infrastructure.

Private Cloud

Private cloud environments are built exclusively for a single organization. They can be hosted on-premises or in a dedicated third-party data center. Private cloud architecture offers greater control, enhanced security, and customized infrastructure, but it typically comes with higher upfront costs and ongoing management responsibilities.

Hybrid Cloud

A hybrid cloud infrastructure combines public and private cloud resources, often with orchestration tools to facilitate stable integration between environments. The hybrid model allows businesses to maintain sensitive data or legacy systems on-premises while using public cloud infrastructure for scalable workloads or testing environments.

Cloud Infrastructure vs. Cloud Services

Cloud infrastructure and cloud services are closely related, but they serve different roles within a cloud computing model. Cloud infrastructure refers to the foundational hardware and software, like servers, storage, networking equipment, and virtualization tools, that power cloud environments. These are the building blocks that make cloud computing possible.

Cloud services are the applications and platforms built on top of that infrastructure. These services are typically delivered through three primary models:

• Infrastructure as a Service (IaaS): Provides raw computing resources like virtual machines and storage. Businesses use IaaS to build custom environments while avoiding physical hardware costs.

• Platform as a Service (PaaS): Offers tools and frameworks for developers to build, test, and deploy applications without managing infrastructure.

• Software as a Service (SaaS): Delivers ready-to-use applications over the internet. Most users interact with the SaaS layer. Email platforms, customer relationship management (CRM) systems, and EDI tools all fall into this category.

Understanding where each model fits in the stack can help businesses make smarter decisions about how to manage applications and data. For example, the Orderful cloud-based EDI platform is a SaaS solution that runs on top of a highly scalable IaaS infrastructure. This separation allows users to access powerful EDI capabilities without needing to manage the underlying infrastructure directly.

Benefits of Cloud Infrastructure

Cloud infrastructure enables organizations to move faster, operate more efficiently, and scale without the limits of physical resources. By shifting away from traditional hardware and software management, businesses gain flexibility, cost savings, and global reach.

Scalability and Elasticity

Cloud environments allow businesses to adjust computing power and storage as needed. Whether expanding to meet demand or scaling back to reduce costs, resources can be allocated dynamically without delays.

Faster Deployment

New services and applications can be launched on an established cloud system in minutes instead of weeks, helping teams respond quickly to changing business needs.

High Availability and Redundancy

Most cloud platforms include built-in failover systems and distributed architectures. This reduces the risk of downtime and protects access to critical systems.

Security and Compliance Frameworks

Public cloud providers offer robust security tools, encryption options, and support for industry-specific compliance standards, often at a level that’s difficult to achieve in-house.

Lower Total Cost of Ownership

Cloud infrastructure minimizes upfront capital expenses and reduces long-term maintenance costs. Businesses only pay for what they use, improving cost efficiency and supporting better cloud cost optimization.

Global Accessibility

Cloud infrastructure makes it easy to support users, partners, and customers across multiple locations. This global reach is especially valuable for platforms that rely on distributed teams or worldwide supply chains.

Use Cases for Cloud Infrastructure Today

Cloud infrastructure supports a wide range of enterprise applications and cloud-computing services by providing a scalable foundation for modern software resources. From supply chain automation to big data analytics, businesses rely on cloud platforms to power their most critical systems and workflows.

EDI and Supply Chain Platforms

Many companies now run their cloud-based EDI operations entirely in the cloud. Solutions like web EDI fulfillment allow businesses to manage transactions, onboard partners, and exchange documents without relying on outdated on-prem systems. Tools that help test, fix, and validate EDI transactions also run more efficiently in cloud environments.

Big Data and Analytics 

Cloud networks offer the computing power and storage capacity required to process massive datasets. Businesses use this infrastructure to run real-time reporting, forecast trends, and feed machine learning models without having to invest in physical servers.

SaaS and API-First Integrations

Most cloud applications today are designed to integrate easily with other platforms. Whether syncing CRM data or preparing for an ERP migration, companies benefit from the flexibility of cloud-native APIs and service-oriented architecture.

Cloud infrastructure allows all of these systems to operate with higher availability, stronger security, and less overhead, helping organizations scale faster and adapt to new challenges.

Powering the Future With Smarter Infrastructure

The impact of cloud infrastructure encompasses more than just technology. It also enables the agility, speed, and global reach that today’s cloud customers expect. By replacing rigid, on-premise systems with scalable cloud delivery models, businesses can operate with greater efficiency, resilience, and confidence.

Orderful is powered by modern cloud infrastructure to ensure fast, reliable EDI connectivity across global trading networks. Our platform is designed to support high availability, low latency, and seamless integration, allowing you to onboard partners, automate processes, and scale without friction.

Speak with an EDI expert today to learn how Orderful can help modernize your supply chain with cloud-native EDI solutions.

FAQs About Cloud Infrastructure

What is cloud infrastructure?

Cloud infrastructure is the combination of virtualized hardware and software resources—such as servers, storage, and networking—that support cloud computing environments. It allows organizations to access computing power and data storage over the internet without managing physical equipment.

What are the main components of cloud infrastructure?

The main components of cloud infrastructure include computing resources (like virtual machines), storage systems (object, block, and file storage), networking equipment (routers, firewalls), and management software (operating systems, APIs, orchestration tools).

What are the types of cloud infrastructure?

The three main types of cloud infrastructure are:

• Public cloud
• Private cloud
• Hybrid cloud

How is cloud infrastructure different from cloud services?

Cloud infrastructure refers to the underlying virtualized hardware and software that powers cloud environments. Cloud services (like IaaS, PaaS, and SaaS) are the applications and platforms built on top of that infrastructure.

What are the benefits of cloud infrastructure?

Cloud infrastructure provides scalability, faster deployment, high availability, stronger security, lower total cost of ownership, and global accessibility—enabling businesses to operate efficiently and scale easily.

How does cloud infrastructure support EDI platforms?

Cloud infrastructure allows EDI platforms to run more efficiently by providing a flexible, scalable foundation. It supports faster partner onboarding, real-time data exchange, and easier integration with platforms like NetSuite and QuickBooks.

What’s the difference between on-premise and cloud infrastructure?

On-premise infrastructure is hosted and managed in-house using physical servers. Cloud infrastructure, on the other hand, uses virtualized resources hosted by third parties or across hybrid environments—reducing maintenance overhead and increasing flexibility.

Who uses cloud infrastructure?

Cloud infrastructure is used by businesses of all sizes—from startups launching digital products to enterprises managing global supply chains. It's essential for running SaaS applications, EDI systems, big data analytics, and more.