The term Cloud refers to the Internet. Cloud computing is a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility over a network.
End users can access cloud based application through a desktop or mobile app while the business software and data are stored on servers at a remote location. Cloud application is mainly to give the same or better service and performance than if the software programs were installed locally on end-user computers.
This helps to allow enterprises to get their applications up and running faster, with easier manageability and less maintenance. It enables IT to more rapidly adjust IT resources (such as servers, storage, and networking) to meet fluctuating and unpredictable business demand.