An application is cloud-based when it has been subsequently adapted for operation in the cloud. It already existed and was not “born in the cloud” (is not cloud-native). Instead, it was adapted and optimized for the cloud.
Companies save effort with the cloud-based approach: They can utilize cloud platforms and dynamic cloud infrastructures without having to redevelop the application from scratch. Additionally, the acquisition and maintenance of hardware by the company’s internal IT department is eliminated. Instead, companies rent IT resources from a cloud provider as needed. This way, long-term investments in IT infrastructure are not necessary. Furthermore, the flexible on-demand model in the cloud offers companies rapid scalability. This allows them to quickly increase the availability of their application when demand peaks occur.