Cloud computing allows users to access software, applications, and data storage over the internet instead of installing and maintaining the applications locally on each user's computer. The applications run and data is stored on remote servers owned by cloud computing providers. Users pay only for the resources they use, avoiding upfront costs of purchasing servers and software licenses. Some key benefits of cloud computing include flexibility to scale resources up or down as needed, automatic software updates, access to data and applications from anywhere, increased storage capacity, and reduced IT costs and responsibilities.