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Chapter 3 What is Cloud Computing?

Traditional IT Overview

12 min read Lesson 7 / 228 Preview

Traditional IT Overview

Before you can truly understand cloud computing, you need to understand what came before it. Traditional IT infrastructure — also known as on-premises or on-prem infrastructure — is the foundation that cloud computing was built to improve upon.

How Traditional IT Works

In a traditional IT setup, a company owns and operates all of its computing infrastructure. This means the company is responsible for:

  • Purchasing servers — Physical hardware that runs applications
  • Renting or building data center space — Facilities to house the servers
  • Hiring IT staff — Engineers to install, configure, and maintain hardware
  • Managing networking equipment — Routers, switches, firewalls, and cables
  • Handling power and cooling — Electricity, backup generators, and HVAC systems
  • Planning for capacity — Estimating future needs and purchasing hardware in advance

The Data Center Model

A traditional data center is a physical facility where companies store their computing equipment. Here is what a typical data center setup looks like:

Traditional Data Center Components:
┌─────────────────────────────────────────┐
│              Data Center                 │
│                                         │
│  ┌──────────┐  ┌──────────┐  ┌───────┐ │
│  │ Servers   │  │ Storage  │  │Network│ │
│  │ (Racks)   │  │ (SAN/NAS)│  │(Switches│ │
│  └──────────┘  └──────────┘  └───────┘ │
│                                         │
│  ┌──────────┐  ┌──────────┐  ┌───────┐ │
│  │ Power     │  │ Cooling  │  │Security│ │
│  │ (UPS/Gen) │  │ (HVAC)   │  │(Physical│ │
│  └──────────┘  └──────────┘  └───────┘ │
└─────────────────────────────────────────┘

The Problems with Traditional IT

Traditional IT infrastructure comes with significant challenges:

1. High Upfront Costs (CapEx)

Purchasing servers, networking equipment, and data center space requires massive capital expenditure. A single server rack can cost tens of thousands of dollars, and a data center lease can cost millions.

2. Capacity Planning Challenges

You must estimate your computing needs months or even years in advance. If you underestimate, your applications crash during peak demand. If you overestimate, you waste money on idle hardware.

3. Slow Provisioning

Ordering, shipping, installing, and configuring new hardware can take weeks or months. When your business needs more capacity quickly, traditional IT simply cannot keep up.

4. Maintenance Burden

Hardware fails. Servers need patches. Software needs updates. All of this requires dedicated IT staff working around the clock.

5. Limited Scalability

Scaling up means buying more hardware. Scaling down means having expensive equipment sitting idle. There is no elasticity.

Traditional IT Challenge Impact
High upfront costs Large CapEx required before any return
Capacity guessing Over-provisioning wastes money, under-provisioning causes outages
Slow deployment Weeks to months for new infrastructure
Maintenance overhead Requires 24/7 operations team
Limited scalability Cannot easily scale up or down with demand

Why Companies Moved to the Cloud

The limitations of traditional IT created the demand for a better solution. Companies needed:

  • Pay-as-you-go pricing instead of large upfront investments
  • Instant provisioning of new resources
  • Elastic scaling that matches actual demand
  • Reduced operational burden — let someone else manage the hardware
  • Global reach without building data centers worldwide

This is exactly what cloud computing provides, and you will learn all about it in the next lesson.

Pro Tip: On the CLF-C02 exam, you may encounter questions comparing traditional IT to cloud computing. Remember the key pain points: high CapEx, capacity guessing, slow provisioning, and maintenance burden.

Key Takeaways

  • Traditional IT requires companies to own and manage all computing infrastructure
  • Data centers involve servers, storage, networking, power, cooling, and physical security
  • High upfront costs (CapEx) are a major drawback of traditional IT
  • Capacity planning is difficult — you must guess your future needs
  • Hardware provisioning takes weeks to months, limiting business agility
  • Cloud computing was developed to solve these specific traditional IT challenges
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