Cloud-based networks, or cloud networking, let a cloud provider handle your network management through the Internet. Instead of dealing with physical hardware, you get a virtual command center that’s flexible, scalable, and easy to access from anywhere.

Cloud network management gives engineers more control and visibility without being tied to on-site infrastructure. It’s a smarter way to meet modern networking demands.

Relevant information on cloud networking you’ll find in this article:

• The inner workings of cloud-based computing
• How cloud-based networks function
• Cloud-based networks vs. traditional networks
• The different types of network cloud options available
• The benefits they can provide businesses
• What the future of cloud-based networking looks like
• Challenges and solutions to cloud-based networks’ biggest issues
• How Meter can simplify your business’s transition to cloud-based networking

What are the core components of a cloud-based network?

The core components of a cloud-based network include data centers, virtualized resources, cloud services, and security tools. Together, they enable centralized and scalable management.

Data centers

Data centers are the physical foundation of the cloud. They host servers that process, store, and manage network traffic. These facilities make cloud resources available remotely, allowing centralized control without on-site hardware. Though unseen by users, data centers drive the entire cloud system.

Virtualized resources

Virtualization turns physical hardware into software-based components. It allows many virtual machines to run on one server. This makes it simple to scale resources up or down based on your network's needs. Virtualized resources also reduce hardware use and improve efficiency.

Cloud services

Cloud services offer tools to manage networking, security, storage, and analytics in one place. They let users adjust resources quickly to meet changing needs without physical updates. Managing everything remotely makes network operations much easier.

Networking infrastructure

Every cloud network relies on a mix of physical and virtual tools to stay connected. Devices like switches and routers work with software-based solutions to link:

• Data centers
• Cloud resources
• Users

Reliable infrastructure supports steady communication, secure access, and consistent performance for connected devices.

APIs

APIs are the translators that allow applications and systems to interact with cloud services. They simplify tasks like configuring resources, integrating new applications, or managing workflows. APIs make the cloud more accessible, enabling users to automate and customize processes with minimal effort.

Security mechanisms

Firewalls, encryption, and identity controls guard cloud networks against unauthorized access. They allow only approved users and devices to handle sensitive data. Security tools also find weak spots and watch for threats, helping keep the network safe.

Monitoring and analytics

Real-time tools watch the network’s health and performance, catching issues early. They offer useful insights that help operators manage resources and fix problems fast. Detailed analytics make it easier to decide how to keep the network running well.

How do cloud-based networks work?

Cloud-based networks use infrastructure, virtualization, SDN, centralized management, and connectivity to operate through the Internet. They let you adjust settings, allocate resources, and deploy services without handling physical hardware.

Cloud networking infrastructure

Cloud providers handle the servers, storage, and hardware in secure data centers for you. You access these resources through software, skipping the hassle of cables or hardware fixes. It’s a cleaner, faster way to adjust settings or launch new services.

Virtualization and software-defined networking (SDN)

Virtualization turns hardware into virtual machines, letting one server handle many tasks. SDN takes over traffic management, making the network smarter and more flexible. Together, they allow quick traffic changes, updates, and policies—no tools needed.

Centralized network management

Everything happens in one cloud-based dashboard, your one-stop shop for:

• Real-time metrics
• Configurations
• Alerts
• Much more

Whether you’re allocating bandwidth or troubleshooting, it’s all done here. No need to climb a ladder or open a server rack—just click, configure, and move on.

Blending on-premises and cloud

If you’ve got existing on-site infrastructure, hybrid setups let you mix the old with the new. Keep sensitive data on local servers while offloading lighter tasks to the cloud. It’s a win-win: you optimize resources without abandoning what you’ve already built.

Role of Internet service providers (ISPs)

ISPs connect your network to the cloud by providing the Internet bandwidth you need. They deliver the connection but don’t manage your cloud resources—they’re more like the courier than the creator.

Cloud networking combines the following for a more flexible, modern experience:

• Virtual resources
• SDN
• Centralized control

Quick adjustments and real-time monitoring make them smarter and easier to manage than traditional networks.

Cloud-based networks vs. traditional networks

Cloud-based networks are like the adaptable multitaskers of the tech industry. They rely on virtual infrastructure hosted in the cloud, letting you manage and adjust everything remotely through a centralized dashboard. They make office network installation much easier. No more bulky hardware sitting in your office, and no more awkward moments crawling under desks to fix cables.

These networks scale with ease—just click a few buttons to add resources or adjust settings. However, they do depend on a reliable Internet connection, so no Wi-Fi, no fun.

Traditional networks, on the other hand, stick to their roots with physical hardware like routers and switches. They require a hefty upfront investment, and scaling means buying more hardware—a bit like needing a bigger house to store all your stuff. Maintenance is hands-on, from upgrading equipment to dealing with wear and tear. Sure, they’re reliable, but they’re not winning any awards for flexibility.

Cost is another big difference. Cloud networks often work on a pay-as-you-go model, so you only pay for what you use, making it budget-friendly for many businesses. Traditional networks come with high upfront costs, but ongoing expenses can be lower if you own the hardware. Managed service providers can offer flexible pricing options, making it possible to save money with the right plan.

In short, cloud networks shine when you need flexibility and remote access. Traditional networks can work if you prefer something tangible and don’t mind a bit more effort. It all comes down to what suits your business best—and how much you enjoy untangling cables.

What are the different types of cloud-based networks?

Cloud-based networking solutions come in several forms, each catering to different business needs. Choosing the right type depends on factors like data sensitivity, cost considerations, and how much flexibility or control your organization requires.

Public cloud networks

Public clouds are managed, scalable, and full of options to fit your needs. Providers like AWS, Microsoft Azure, and Google Cloud offer tools like Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). Each can be helpful in customizing and growing your network.

The tricky part? Pricing can get complicated fast. Meter takes a different route with a tailored approach, offering flexibility, full customization, and support. We don’t just manage the infrastructure—we work with you to create a solution that fits your business and connects easily to your existing systems.

Private cloud networks

Private clouds are the VIP lounges of networking. They’re built exclusively for one organization, either on-site or hosted by a provider. With these setups, you receive total control. They're perfect for businesses handling sensitive data or working in highly regulated industries.

Because they’re dedicated, private clouds can be fine-tuned for security and performance. Many providers now offer fully managed services, so you can enjoy the perks of exclusivity without stressing over upkeep.

Hybrid cloud networks

Hybrid clouds combine the best of both worlds, blending public and private environments. They let you keep sensitive data or legacy apps in a private cloud while offloading less critical workloads to a public one.

It’s a flexible setup that helps you balance costs, scalability, and control. But managing a hybrid cloud takes coordination—and a bit of know-how—to keep everything running full steam ahead.

Making the right choice

Public clouds are affordable upfront and easy to grow, but managing costs takes planning. Private clouds give you total control and better security, though they need more effort to maintain. Hybrid clouds let you combine both, running some tasks in-house and others in the cloud. Your choice depends on your business needs and how hands-on you want to be.

Benefits of cloud networking solutions

Cloud-based networks help businesses manage, grow, and secure their IT systems more efficiently.

Cloud networking grows with you

You’ll never have to overbuy, just in case, and scaling down is just as easy as scaling up. Say goodbye to resource headaches and hello to a dashboard that does the heavy lifting.

Pay for what you use—nothing more, nothing less

Cloud networks cut out big hardware investments and ongoing maintenance costs. Instead of dusty servers sitting idle most of the year, your budget focuses on what matters. It’s efficiency with a side of savings.

Cloud providers go all-in on security

Cloud provider security tends to be stacked:

• Encryption keeps your data safe
• Access controls make sure only the right people get in
• Automated patching stops vulnerabilities in their tracks

While providers secure the infrastructure, you stay in charge of protecting your apps and data. It’s teamwork that keeps threats out.

See everything your network is doing with a centralized dashboard

Spot bottlenecks, monitor traffic, and adjust resources—all without leaving your chair. Want real-time analytics? They’re just a few clicks away (or a quick plugin if your cloud service doesn’t include them).

Project-friendly flexibility

Need resources for a short-term project or pilot program? No problem. Cloud networks let you spin up what you need, when you need it, and scale back down when you’re done. Testing new configurations or exploring emerging tech is a breeze.

Redundancy comes standard

With backups stored across multiple regions, recovery from outages is fast and painless. Whether it’s a snapshot or a full restoration, your network stays operational, keeping downtime from causing chaos.

Manage your network from any device with an Internet connection

Whether you're troubleshooting from a coffee shop or allocating bandwidth on a plane, you’re in full control. No need to send someone on-site when issues arise—it’s all in the cloud.

Cloud providers handle updates like pros

Firmware, software, and hardware improvements happen in the background, so you’re always running on the latest tech. Say goodbye to downtime for maintenance and hello to more time for the work that matters.

Cloud networks stretch across the globe

Teams and customers have access to the same level of service no matter where they are. Local Internet conditions might affect speed. Even so, the cloud keeps collaboration and access dependable.

Centralized apps and data make teamwork easy

Without stepping on each other’s toes, teams can:

• Work together in real time
• Share files
• Update projects

Less time juggling versions, more time moving projects forward.

The future of cloud networking

Cloud-based networks are gearing up for a smarter, faster, and greener future. They're always evolving, and a few trends are set to shape what comes next.

5G will supercharge connections

With 5G rolling out globally, cloud-based networks are about to get a serious speed boost. Think faster uploads, lower lag, and smoother integration with all the gadgets we love. This means better performance for remote work, gaming, and real-time data processing. Just be ready to finally retire the phrase, “Hold on, it’s loading.”

Automation tools will make life easier

Automation tools are taking over the boring parts of managing networks. They can predict traffic and adjust resources, so you don’t have to. With less manual work, teams can focus on bigger projects—or just enjoy a coffee break without stressing over network problems.

Edge computing brings the cloud closer

Edge computing is shrinking the gap between users and data centers. By processing data near the source (like IoT devices), it reduces latency and eases the load on centralized servers. In short, it’s the cloud, but with VIP access for your devices.

IoT will demand smarter networks

IoT devices are multiplying like rabbits, and cloud networks need to keep up. From smart fridges to industrial sensors, each device needs a stable connection. The cloud will rise to the challenge by supporting more devices and processing data from all corners of the world. Let’s just hope your smart toaster doesn’t demand an update mid-toast.

Security will step up

As networks become more complex, security tools are evolving to stay ahead. SASE (Secure Access Service Edge) combines network and security functions into one cloud-based service. It protects users and devices no matter where they connect from—whether that’s the office, home, or a coffee shop with unreliable Wi-Fi.

There’s also Zero Trust security, which is exactly what it sounds like—it trusts no one. Instead of giving blanket access, it verifies every interaction and only grants permissions when credentials check out. It’s like a security checkpoint that never stops working.

Finally, automated threat detection keeps an eye on your network around the clock. These tools look for unusual activity and stop issues before they turn into major problems. It’s the ultimate watchdog, never needing sleep or coffee breaks.

With these innovations, network security is stepping up in a big way. Hackers will have to work much harder to find a way in—and they’re probably not thrilled about it.

Sustainability takes the stage

Cloud providers are leading the charge in green computing by using renewable energy to power data centers and designing energy-efficient hardware. Innovations like liquid cooling and energy optimization tools further cut environmental impact. These efforts make cloud computing better for the planet while helping businesses save on costs.

Challenges that come with adopting cloud-based networks

Moving to cloud networking can improve operations, but it comes with its own set of challenges. Let’s break them down and tackle them head-on.

Security and compliance concerns

Security in the cloud is about more than just firewalls. With data spread across regions, there’s a risk of breaches and regulatory issues. While cloud providers secure their infrastructure, you’re still responsible for protecting your data and meeting compliance standards like GDPR or HIPAA.

Tools like encryption and real-time monitoring help, but you’ll need strict access controls and regular audits to stay ahead. Think of it like this—the provider handles the foundation, and you secure your castle.

Dependence on third-party providers

When you hand over infrastructure control, you’re relying on the provider to keep things running. Outages, maintenance, or delays on their end can disrupt your operations. Before choosing a provider, check their service level agreement (SLA) for uptime and support quality.

A multi-cloud setup can add redundancy, but it takes careful planning. Not every service plays nicely with others, so test compatibility before jumping in.

Internet reliability

Cloud access depends on a stable, fast Internet connection. If your connection falters, productivity can take a hit. Setting up multiple ISP connections and using SD-WAN can keep traffic flowing even during outages.

For apps that can’t handle lag, consider local caching or edge computing to reduce reliance on real-time cloud access. It’s like having a backup plan for when the Internet isn’t on your side.

Managing costs

The pay-as-you-go model sounds great until you see an unexpected bill. Costs can pile up with heavy usage or unmonitored data transfers. Automated tools can track spending and alert you to spikes.

Trim costs by identifying underused resources or switching to reserved pricing for predictable workloads. Regular plan reviews can also help prevent overspending.

Meter can simplify your cloud-based network transition

Meter’s cloud networking solution eliminates the complexities of moving to the cloud, allowing your IT team to focus on projects that drive growth. We provide extensive support, from the initial design to hardware and ongoing management, creating a cloud-based network that's adaptable to your organization.

What to expect from Meter’s services:

• All-in-one integration: We manage the entire process, from network design to installation and ongoing maintenance.
• Network as a Service (NaaS): Access high-quality networking solutions without upfront costs on hardware such as switches and access points.
• Adaptable infrastructure: Our networks scale as your business grows, offering flexibility.
• Proactive monitoring: We offer regular monitoring to maintain optimal performance, addressing potential issues swiftly.
• Advanced security measures: Our DNS security protocols protect your data and network integrity.
• User-friendly dashboard: Enjoy full visibility and control through an intuitive, real-time Meter dashboard.

Schedule a demo of our NaaS solution tailored to your specifications.