What Is Cloud Development? The Fundamentals You Need To Know In 2023

7192 Updated 08.16.2023
Yuriy Matviyuk

Development Tech Lead


Table of contents

Nowadays, cloud development is at the peak of popularity. The digital change in economics has impacted every aspect of running a business. Technology controls everything from how businesses structure operations to products and services. 

Today most companies are viewed as technology companies. Innovating may lead to tech-enabled dominance or total collapse.

We will emphasize the critical components of current cloud-based application development. We will assist you in making the most significant innovative decisions.

What is Cloud Development?

Let us, firstly, find out what cloud development is. Cloud development is the process of developing apps or computer solutions that may be run fully on web-based platforms. It gives greater flexibility in building and deploying new products. We have figured out what is cloud development. Let us analyze some of the cloud development trends.  

Trends and Market overview

Developing in the cloud is becoming an increasingly popular process. According to the Cloud Services Market study, the worldwide cloud services market was valued at $264.8 billion in 2019. It is expected to reach $927.51 billion by 2027, increasing at a CAGR of 16.4 percent from 2020 to 2027.

The worldwide cloud services industry is still in its early stages. But it has significant development potential due to a number of driving factors. The primary driver for the cloud software development industry is that it offers cost savings compared to traditional physical storage. With cloud services, you can save up to 35 percent of yearly operational costs.

The flexibility is given in corporate operations, functional capabilities and access from any location at any time. It boosts the cloud services market growth. The growing number of small and medium-sized businesses is also driving market expansion. These businesses are always looking for cost savings, which cloud services can easily deliver.

However, certain factors limit market growth. The most prominent is data security owing to the possibility of data breaches and misuse by third parties. Another constraint is data location and management. They can be readily hacked and exploited due to various ungoverned locations. Insecure interfaces and APIs further hinder the growth of the cloud services industry. Companies are oblivious to the location of these interfaces.

Furthermore, emerging economies are likely to adopt cloud technology due to cost savings. As a result, they are providing market development possibilities. Another potential for market participants is the requirement for ERP. As a software solution, it can be used, for example, in the healthcare industry.

The cloud services market trends are divided into:

  • Infrastructure as a service (IaaS),
  • Software as a service (SaaS),
  • Platform as a service (PaaS), 
  • Business process as a service (BPaaS),
  • Cloud advertisement services,
  • and cloud management and security services. 

Cloud services enable businesses to promote their products and services quickly. That is why cloud advertising has the largest market share. Due to significant data security concerns across all companies adopting cloud services, cloud management and security services are projected to expand at the fastest CAGR throughout the projection period.

There is a cloud type sector in the cloud website development services industry, which comprises public, private, hybrid, and community cloud. The public cloud market had the most outstanding revenue share. It is the most widely used cloud type due to its ease of use and cheap costs. As private companies adopt cloud services for asset development, the private cloud is anticipated to grow at the fastest CAGR.

How Cloud Development Works? [Architecture]

Cloud application development needs a deep understanding of data architecture. The major difference between standard web development and cloud app design is that a cloud-based application operates as a collection of interconnected services (APIs). As a result, you must think about how to get the most out of cloud services. You can do it by linking them and being aware of the many kinds of elements you have. These services should be able to communicate with one another as well.

The arrangement of data is the second factor to examine. The app architecture should provide instructions on how to segregate the data for cloud servers. You may store separate software components anywhere, on a public or private cloud. The loading speed of your app is controlled by how close the servers are to your clients. That will make your business more adaptive and provide you the chance to improve your online performance.

Create a communication logic between the data and services in your app. The majority of your app’s components should communicate in real-time. If this process isn’t well-designed, your product’s user experience may suffer as a result of slow loading. Improve communication chains first. Then pick one of two winning strategies: single-channel streaming or system message grouping.

It’s a good idea to consider your scaling options ahead of time. Consider the possibility of increased traffic. Include a safety buffer into your operational channels. Create an operating model that will help back-end components and storage server customers even in the most difficult situations.

Finally, security algorithms are a source of worry. Keep in mind that certain industries, such as banking, healthcare, and retail, have specific criteria for your tool. Examine them and think about any flaws in your cloud-based solutions. So you can create strong encryption, implement a cloud identity and access management (IAM) strategy that keeps your product safe and cost-effective.

Why will cloud development be profitable for your business?

Today many organizations have alternatives for running and developing their operations. That is a result of fast technological advancements. Cloud Computing has arisen as a new trend in data center management. It is increasingly being used as the foundation for business models. 

Cloud Computing is more than simply a trendy and novel solution. It is also a relatively new business model that any type of company can use. Many people still assume that cloud computing is only used as a backup for keeping the system running. But it truly serves a variety of corporate needs.

Key differences from web-based products

The difference between cloud-based and web-based apps is that all cloud apps are web-based, but not all web apps are cloud-based. Cloud applications, for example, use numerous data centers. Web apps use a single location. Cloud apps have synchronized versions for all users. Web apps treat each version as unique to a user, among other differences.

Any web-based software has the structural and functional potential to grow into a cloud app. Still, they should be considered as web-based apps as long as they lack the extensive functionality and flexibility offered by cloud-based apps.

Furthermore, unlike web-based apps, cloud apps may function entirely or partially offline. As a consequence, they’re perfect for systems that need to do a large number of calculations or that must run continuously in locations with inadequate internet access. There are, however, more web-based solutions for collaborative work accessible. 

Cloud-based apps have quickly become the preferred solution for collaboration-intensive businesses. Web-based programs work well when internet access is consistent. They will benefit booking websites, information-sharing portals, discussion forums, and shopping web products.

Finally, taking a look at the web applications we use on a regular basis might help us grasp the differences between these two types of apps. The most prevalent web-based apps are those that require a continual online connection. Popular websites include Facebook and Wikipedia. 

Cloud-based apps also continue to operate even when users are not connected to the internet. Some of the most popular cloud apps include Slack and Dropbox.

Cloud apps are more resilient, scalable, and adaptable in general. However, this does not imply that they are the best apps for all of your requirements. Web applications are often used for specific activities. It could be a survey software for small businesses. In contrast, cloud applications are also suitable for complicated operations. For example, it could be an enterprise accounting system. 

Key benefits of Cloud Development

We have prepared several benefits of cloud-based development. Here are they:

Cost-cutting and investment

The decrease in IT expenditures is one of the benefits of cloud-based software development. You won’t have to spend money on stuff like infrastructure or hard drives. You are merely charged a minimum monthly or once-paid cost for recurring compensation. That is according to the agreed-upon service package with the Cloud Computing service provider. As a result, the royalty payments on automatic software licensing are reduced because they all use Cloud-based computing.


Cloud-based application development is vital for today’s work environment. According to a recent KPMG poll of 500 executives, 42 % believe that flexible work is the primary reason they use cloud software development. It allows your staff to be more flexible in their work habits. If you require access to your papers and data when you are off-site or at home, you may connect to your virtual office quickly and easily using any web-enabled device.

Collaboration Efficiency

The cloud software design concept allows companies to interact and exchange information readily. It improves staff cooperation by allowing several users to exchange and collaborate on data and files at the same time. The cloud enables the company’s team to access work-related information swiftly and securely. 


Another significant advantage of cloud service development is its scalability. Cloud-based services are excellent for companies with variable or rising bandwidth requirements. Your organization can scale up or scale down operations. Your resource storage needs may require fast modification to accommodate such changes. If your demands grow, you may easily expand your cloud capacity by utilizing the service’s distant servers. Similarly, if you need to reduce again, the service allows for this.

Document Management

The more representatives and partners collaborate on papers, the more urgent the need for tight document management. Prior to cloud computing, staff had to transmit files back and forth. It could be email attachments, with each client working on one at a time. You eventually wind up with a jumble of conflicting file content, formats, and titles.

Examples of successful cloud development projects

Northell team decided to gather the most successful cloud service software development projects. Here are they:


Salesforce offers a SaaS platform in the cloud. It is a solution for both business-to-business and business-to-customer transactions.


Slack is a cloud service headquartered in the United States that uses tools and services to facilitate internal team collaboration.

Nerds Support Cloud

Nerd Support Cloud Computing Miami Services includes a number of different services in its cloud system. The Nerd Support cloud supports medium and small-sized enterprises with all IT-related services. They consist of SaaS platforms, hardware upgrades and maintenance, and security. They allow them to function at peak performance.    

Google Cloud

Google Cloud Platform is a cloud service provided by Google. It is built on Google’s same infrastructure for its end-user products, such as Google and YouTube.

Adobe Creative Cloud

Adobe Creative Cloud is a collection of Adobe Systems products and services. It provides members with access to various software for graphic design, video editing, web design, photography, and others.

Which projects need cloud development?

Cloud-based design software is classified into several types based on how the resources are made available to end-users. In the next sections, we will go through them in further detail.


A business model in which software is licensed and delivered is known as software as a service. SaaS (software as a service) is essentially on-demand software for end customers.

At the moment, hundreds and thousands of companies are using this business model to provide software solutions to customers. One advantage for end-users is that they never have to update software because it is constantly running the most recent version on the cloud.

Services such as Evernote, Gmail, Facebook, Office 365, Google Apps, and others are notable examples of SaaS.


Backend as a Service (BaaS) is a cloud computing strategy that serves as a backend for apps (mostly mobile). They give an API and tools for integrating with their backend in several computer languages. They also include storage, analytics, push alerts, dashboards, and social integration.

It is comparable to SaaS in certain ways. However, BaaS is mostly aimed at developers, whereas SaaS is primarily aimed at end-users.

Parse is the most well-known BaaS, having been purchased by Facebook in 2013. Integrates with the majority of computer languages and provides all services required by an application. For small apps, they provide a free tier.


Infrastructure as a Service (IaaS) allows users to access computer resources in a virtualized environment. IaaS subscribers will essentially obtain virtual servers that they will control.


Platform as a Service (PAAS) is a type of cloud computing that offers a platform (runtime) and environment for developers to create web applications on.

One of the benefits of PaaS is that no operations teams are required to monitor infrastructure. The user is primarily concerned with the program itself. Heroku, Google App Engine, IBM Bluemix, OpenShift, and SalesForce are some of the most well-known PaaS vendors.

Cloud Development: Key tools (Northell recommendation)

To avoid challenges while developing in the cloud, we highly recommend you seriously think about what cloud service vendor to choose. Let us look at some of the market leaders.

Amazon Web Services was the leading provider some years ago and still is used by many companies. Amazon Web Services has designed more than 140 services. They are thought to be highly adaptable and integrative. Therefore we are confident that you can develop nearly any custom software with their assistance.

Another vendor you may rely on is Microsoft Azure. Its solutions were created for companies with significant growth ambitions and a variety of web offerings. ML modules, database services, mobile back-end and virtual machines are examples of service components.

One more vendor we want to recommend to you and your company is Google Cloud Platform. It competes with AWS. It provides cloud computing, storage, API services and sophisticated analytics. Additionally, it provides NoSQL database service and even virtual machines all at the same time. This PaaS is also adaptable and cost-effective for startups.

Cloud Development: Typical Owners Mistakes

We decided to add common mistakes that business owners often make during cloud web development. 

Developing a cloud-based app when there’s no real need

Many business owners have an “amazing” cloud-based app concept for their company. Cloud-based apps can help you grow your client base, but creating an app that has no demand is a horrible idea.

You should identify your company objectives and determine whether the app meets those goals.

Not conducting a research

Before building cloud applications, business owners must conduct extensive research. Remember that each business and cloud-based web application development process has its own set of goals. Before you begin, you must check a vast number of things.

Consider your app’s principal goal, the type of your business and your target audience. You should also think about your competitors and your unique selling proposition (USP).

Communicating imprecise Briefings

It is critical to explain your expectations clearly at the outset. The easiest approach to minimize misunderstanding is to communicate with the cloud developers. Think about what specific functionality you want within the cloud-based application. Begin by developing flowcharts, diagrams and example sketches of the screens. They will help designers and developers understand the concept.

If you do not want to make mistakes while building a cloud product, entrust this process to professionals.

Northell has great experience in cloud-based development. We are ready to help you with your project.

How much does Cloud Development Cost?

Many companies are concerned about the cost of developing cloud services. The cost of creating cloud computing solutions for any company is a very delicate subject. Let us analyze the cost and timeline for different kinds of cloud projects.

Project type Cost
SaaS $30.000-60.000
BaaS $40.000-70.000
IaaS $35.000-65.000
Paas $40.000-70.000

How to Hire a Cloud Developer?

The creation of cloud-based applications needs an experienced and competent team. As a result, the topic of where to employ cloud app developers emerges.

There are two common ways to recruit software engineers. The first one is to work with freelance developers and the second one is to select a reputable agency.

Freelance [Pros & Cons]

These days, the freelance hiring option is prevalent. However, cloud application development needs long-term collaboration. Freelancers sometimes transfer to other projects when deadlines are missed.

Advantages of working with a freelancer

  • Freelancers do not adhere to typical working hours and provide flexibility to fulfill the demands of their clients. Customers may easily discover freelancers on online platforms.
  • Freelancers can be engaged for short-term projects and tasks that need specialized knowledge. It could be design or decoding.
  • When compared to digital agencies, freelancers are more economical. During the early stages of a business, the emphasis should be on cost-cutting and expenditures. Considering the inconsistencies of a new company and the unpredictability of success, employing a freelancer is more cost-effective.

Disadvantages of working with a freelancer

  • A freelancer often works for a variety of customers and on a variety of projects. As a result, the project, the task, and the deadline occasionally collide in their heads. They grow fatigued from working with so many clients at once. As a result, it has an impact on their performance. The project may be abandoned or incomplete. That may provide unsatisfactory outcomes for you and your business.
  • One of the biggest issues with outsourcing projects to freelancers is a lack of trust and security. They do not sign an official guarantee to the customer for project completion. Some certain causes and situations might drive freelancers to leave your project in the middle. And, because they are not legally obligated to you, you cannot compel them to stay and finish the task they started.
  • Working with freelancers necessitates a lack of managerial skills and coordination. While developing software, a freelancer should delegate various duties to different people.

Agency [Pros & Cons]

Many companies prefer agencies to freelancers when it comes to project completion. A variety of aspects impacts their selection. The aspects include the benefits and drawbacks of working with freelancers vs. working with a software development agency.

Advantages of working with an agency:

  • Agencies function in a well-organized and coordinated manner. This is a critical component in ensuring that everything runs smoothly and without hiccups.
  • Agency is a team of professionals with varied abilities. They work mostly on complicated projects and are fast to manage the intricacies of the projects.
  • Agencies offer you a legal and official guarantee. They serve you extremely well since they are concerned with their reputation.
  • Agencies have experts that have professional technical knowledge for completing various duties. It could be coding, designing, copying, and implementing.
  • Agencies are always on top of the newest trends. They learn new technologies and know all information needed for the business’s success.

Disadvantages of working with an agency:

  • Because of their typical working hours, agencies lack flexibility. However, because they are goal-oriented, they satisfy their clients’ demands in the greatest way possible.
  • An agency functions as a team that is held accountable for the task at hand. It might be difficult for the customer to interact with the person providing the services and managing the entire task. As a result, communication takes longer.

Also, read – How to Hire a Dedicated Software Development Team?

Tips in Communication with Cloud Developers

Clear, effective communication may offer enormous value to your project. It can help you remain on track and create better products. Communication with developers may be difficult when you don’t speak the same language. Besides, we believe that these communication tips will help you and your team communicate more successfully.

Collaborate with those who share your values

When your cloud software engineers understand your vision and share your dedication to the same things, you value. Communication becomes a lot simpler. Working with a team that truly cares about your project may make a significant impact.

Check that you have access

Ascertain that you own control and have complete access to domains, hosting, and source code. Even if you don’t use them often, you should have logins and admin roles on all of the accounts associated with your project.

Fix problems as soon as possible

Speak out early when something doesn’t make sense to prevent minor issues from becoming major ones. If you have questions, it is the developer’s responsibility to answer them honestly and transparently. As a result, you will resolve your issues in a timely way.

Write clear specifications

A design specification is a written document that describes your product and specifies how the user should interact with it. While writing everything down may appear time-consuming, it is the most important thing you can do in the early phases of cloud-based product design and software development.

How do we do cloud development and why does it work?

In recent years, the “cloud” has grown in importance. Not just for individual users but also for businesses. People are storing music in the cloud, we are hosting websites in the cloud and we are saving photos in the cloud. Therefore more and more businesses are developing cloud-based applications.

Northell has wide experience in building cloud applications. It is quite a challenging process, but we have cloud experts in our team who solve all cloud web development issues. Recently we have finished the Learning app project.

Learning app is a cloud-based educational platform where users can study English with the help of YouTube videos. The client needed an attractive UX/UI design. We have done everything for our client to be satisfied with a new platform appearance. As a result, more and more users started using the Learning app platform.

Cloud Development: Summary


The cloud approach delivers numerous essential benefits to organizations. They include decreased software development expenses and improved accessibility of the completed product. It also provides a new degree of uniformity and scalability possibilities.

At the same time, cloud-based application development is more difficult than web or desktop development. It contains extra components to handle. There are numerous API connections, data architecture design and data decoupling. 

We hope our article will help you develop a world-class cloud-based product

In case you have additional questions, get in touch with us. We will be happy to help you with any issue you have.

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