Cloud computing is a subscription-based service where a person or business can obtain networked storage space and computer resources for a fee. There are different types of cloud computing services. The two most popular types of cloud computing services are Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS). In an SaaS offering, enterprise applications and associated data are hosted on the cloud service provider’s servers and storage systems. Users gain access to SaaS enterprise applications and associated data using a web browser and typically pay a fee per user per month. In an IaaS offering, the provider provides the infrastructure components to a user, which includes on-premise servers, virtual machines, storage devices, and networking resources to run the enterprise applications on a pay per use basis. The company or user is responsible for installing and maintaining the operating system and application or virtual machine, while the provider is responsible for managing the infrastructure hardware that the applications or virtual machines run on.

Cloud computing involves delivering hosted services over the internet. The service end is where the data or software is stored and the user end is a single user or company network. Thus, users would turn on their computer, connect to the web and to the servers holding their data, click on the application software, and then just start using the application with the data that is stored at the service end.