The most important terms explained in the cloud glossary

10 June, 2026

Nadine Kustos
Nadine Kustos
Marketing Manager

Nadine unterstützt seit Mai 2025 das NETWAYS Managed Service Team. Als Marketing Managerin kümmert sie sich um die Planung, Durchführung und Kontrolle von Marketingaktivitäten, um die Produkte optimal am Markt zu positionieren. Auch in ihrer Freizeit darf der kreative Ausgleich nicht fehlen: Neben der Fotografie und dem Tanzen, zählen auch das Malen, Basteln und Sport zu ihren Hobbies.

by | Jun 10, 2026

Cloud computing forms the basis of modern IT infrastructures. You will come across countless technical terms, especially when getting started – from API to disaster recovery to virtual machines. In this comprehensive cloud glossary, I explain the most important terms simply and clearly.

The most important cloud terms at a glance

API (Application Programming Interface)

An interface that enables different software applications to communicate with each other and exchange data. In the cloud, APIs control access to external resources.

This is a program part that is made available at source code level by a software system to other applications for the respective connection. In order to be able to use such a programming interface, detailed documentation of the individual functions including their corresponding parameters is usually created.

Why is this important?

  • Automation of processes
  • Integration of different systems
  • Foundation of modern cloud applications

Autoscaling

Autoscaling is a function that automatically adjusts the number of active servers to the current data traffic requirements.

Example:

  • Many users: more servers
  • Fewer users: fewer servers

The result: optimum costs and performance.

Backup

Backups are backup copies that can be used to restore data in the event of loss or destruction (e.g. by ransomware).

The advantage of creating backups via the cloud is that new data can be automatically synchronized in real time. If – for whatever reason – data is lost, all information, files, texts, photos, images, sensitive data, etc. can be restored immediately using backups.

Bandwidth

Bandwidth is the amount of data that can be transferred via an Internet connection in a given time.

Central Processing Unit (CPU)

The main processor of a server coordinates the execution of programs and instructions and provides the computing power.

In the cloud, this means that you book computing power in the form of virtual CPUs (vCPUs).

The more CPU power, the:

  • your applications are faster
  • higher your costs

Cloud Act

The Cloud Act is a US law that allows US authorities to access data from US companies under certain conditions, even if this data is stored outside the USA.

Relevant for you:

  • Privacy
  • Compliance
  • Choice of cloud provider

Cloud architecture

The cloud architecture describes how your cloud environment is structured.

Components:

  • Compute (e.g. VMs, containers)
  • Storage
  • Network
  • Safety components

Goal: An architecture that is scalable, secure and efficient.

Cloud computing

Cloud computing refers to the on-demand provision of IT resources such as servers, storage space or software via the internet. Instead of buying their own hardware, users rent services and often only pay for what they actually use (pay-per-use).

Cloud migration

Cloud migration is the process of moving some or all of a company’s resources to one or more locations in the cloud. Although cloud migration often involves moving resources from local sites to a cloud provider’s servers, resources can also be moved between clouds. Learn more.

Cloud monitoring

Cloud monitoring helps you to monitor your systems in real time.

What is monitored?

  • Server utilization
  • Error
  • Availability
  • Network traffic

Your advantage: Problems are recognized before they become critical.

Cloud Security

Cloud security includes all measures to protect your data and applications.

Important aspects:

  • Encryption
  • Access controls
  • Monitoring
  • Compliance

Cloud storage

Cloud storage allows you to store data in the cloud.

Types:

  • Object storage (e.g. for images, backups)
  • Block storage (for databases and application data)
  • File storage (classic file systems)

Compliance

Compliance with laws, guidelines and standards. In the digital context, this means, for example, consistently complying with data protection requirements, security requirements or industry-specific regulations.

Examples:

  • GDPR
  • ISO 27001
  • PCI DSS

Important for you: Especially in the cloud, you must ensure that all requirements are met.

DDoS attacks (Distributed Denial of Service)

The overload caused by countless automated, simultaneous attacks leads to a collapse of the network and thus to the inaccessibility of the server, as requests can no longer be processed. The attack is often carried out with the help of malware or bots.

Dedicated Server (dS)

A dedicated server is a physical server that is used exclusively by one person or company. It is available in both root and managed versions and offers maximum performance and full control over server resources.

DevOps

DevOps unites teams, processes and technologies to enable continuous delivery to customers. In the DevOps approach, development and operations work together to improve the delivery of software as well as the security and reliability of products.

Disaster recovery

Disaster recovery encompasses strategies and measures to restore IT systems and data following a catastrophic event, such as a hardware failure, cyber attack or natural disaster. The aim is to minimize business interruption and ensure business continuity.

Typical scenarios:

  • Server failure
  • Cyberattacks
  • Natural disasters

DNS (Domain Name System)

The system that translates domain names into IP addresses so that they can be read by computers.

Firewall

A security device that monitors data traffic and prevents unauthorized access. In the cloud, it is often implemented using “security groups” or “network firewalls”.

GPU (Graphics Processing Unit)

A GPU specializes in parallel calculations.

Typical areas of application:

  • Machine Learning & AI
  • Data analysis
  • Rendering

Important for you: GPUs are powerful, but significantly more expensive than CPUs.

HDD (Hard Disk Drive)

HDDs are classic hard disks with mechanical components.

Advantages:

  • Affordable storage
  • Ideal for large amounts of data

Disadvantage:

  • slower than SSDs

Hybrid cloud computing

Hybrid cloud computing is a type of computing that combines on-premises data centers with cloud computing products and services to modernize legacy resources. In this way, companies can improve their IT performance, optimize costs and scale their capacities up or down immediately.

IaaS (Infrastructure as a Service)

With IaaS, a ready-to-use computer infrastructure is provided and managed via the internet. A cloud computing service provider manages the infrastructure, while you buy, install, configure and manage your own software operating systems and applications.

With IaaS, you receive basic IT resources such as:

  • virtual machines
  • Networks
  • Memory

IAM (Identity and Access Management)

IAM regulates who can access which resources.

Crucial for you:

  • Security
  • Clear allocation of roles
  • Protection against unauthorized access

IOPS

IOPS stands for Input/Output Operations Per Second.

IOPS is a value that indicates how fast a hard disk (HDD, SSD or NVMe) can read and write data. The higher the IOPS number of a hard disk, the faster it can read and write data, which leads to a faster application response.

IP address

A unique numerical address assigned to each computer or server on the Internet.

IPv4/IPv6

IPv4/IPv6 are versions of the Internet Protocol. IPv4 is the older standard and IPv6 provides more addresses.

Latency

The delay time required for data to travel from one point to another influences the speed of data transmission.

In simple terms, it is the time it takes for a request to be answered.

Influencing factors:

  • Geographical distance
  • Network quality
  • System utilization

Load balancing

Distribution of requests to several servers to reduce the load and optimize performance.

Your advantage:

  • better performance
  • High availability
  • No overloading of individual systems

Multicloud

The multicloud approach uses the services of multiple cloud providers to optimize workload performance, increase flexibility and reduce the risks associated with dependence on a single provider.

On-Premise

On-premise solutions are software that is operated on your own infrastructure (e.g. your own servers). Companies retain full control over systems and data and are independent of external cloud providers.

Open Source

Software whose source code is openly accessible. Users can view, modify and further develop it. This ensures transparency, customizability and independence from individual providers.

PaaS (Platform as a Service)

A complete development and deployment environment in the cloud with resources to deliver everything from simple cloud-based applications to sophisticated cloud-enabled enterprise applications.

The provider takes care of:

  • Operating system
  • Runtime environment
  • Scaling

Private cloud

Cloud computing services that are not made available to the general public, but only to selected users via the Internet or a private internal network.

Public Cloud

The public cloud is a public, standardized cloud model. The provider makes various applications (e.g. word processing software) as well as resources, servers and/or storage available to the general public via the internet.

Serverless computing

With serverless computing, the cloud provider manages the server resources fully automatically so that developers only have to upload their code.

This means:

  • You only write code.
  • The cloud takes care of everything else.

SaaS (Software-as-a-Service)

Software-as-a-Service (SaaS) is a cloud-based service that allows you to access an application via an internet browser.

Advantage: No installation, no maintenance.

Scalability

Scalability refers to the ability of a system to add additional resources as requirements increase.

SSD (Solid State Drive)

SSDs are fast storage solutions with no moving parts.

Advantages for you:

  • High speed
  • Low latency
  • Ideal for databases

Vendor lock-in

Refers to dependence on a specific provider. Data, processes or software are so closely tied to its systems that a change is only possible with high costs or technical effort.

Why is this problematic?

  • High switching costs
  • Limited flexibility
  • Dependence on technologies

Virtual Machine (VM)

A virtual machine is a software-based computer that runs on a physical host server. It has its own operating system and reserved resources (CPU, RAM), but is isolated from other VMs on the same hardware. VMs form the basic building blocks of the cloud infrastructure.

Typical advantages:

  • Isolation of applications
  • Flexible scaling
  • Simple migration

VPN (virtual private network)

A VPN establishes a secure, encrypted connection between your device and a network.

Typical areas of application:

  • Access to internal systems
  • Secure connection to the cloud
  • Remote Work

Conclusion

The world of the cloud is complex, but with the right terms it becomes much easier to understand. Once you have mastered these basics, you can:

  • make better decisions
  • Communicate more efficiently with service providers
  • Develop your cloud strategy in a targeted manner

In short, this cloud glossary is your foundation for everything that comes in the cloud.

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