Cloud computing is a type of internet-based computing that provides shared computer processing resources and data to computers and other devices on demand. It is a model for enabling ubiquitous, on-demand access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services). These resources can be rapidly provisioned and released with minimal management effort or service provider interaction.

Cloud computing is a natural evolution of the widespread adoption of virtualization, service-oriented architecture, and utility computing. Proponents claim that cloud computing allows companies to avoid upfront infrastructure costs (e.g., buying servers), and focus on projects that differentiate their businesses instead of infrastructure. Proponents also claim that cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and enables IT to more rapidly adjust resources to meet fluctuating and unpredictable demand.

If you’ve ever used Gmail or iCloud for your personal use, you’ve already experienced cloud computing in action. If you’re an entrepreneur or small business owner who doesn’t have a dedicated IT department or server room, then cloud computing can be even more useful and cost-effective—you only pay for what you need when you need it.