Cloud computing is a model for enabling ubiquitous, clear, convenient, on-demand access to a shared pool of configurable computing resources.[1] [2] Cloud computing and storage solutions provide users and enterprises with various capabilities to store and process their data in third-party data centers.[3] It relies on sharing of resources to achieve coherence and economies of scale, similar to a utility (like the electricity grid) over a network.[4] At the foundation of cloud computing is the broader concept of converged infrastructure and shared services.

Cloud computing, or in simpler shorthand just "the cloud", also focuses on maximizing the effectiveness of the shared resources. Cloud resources are usually not only shared by multiple users but are also dynamically reallocated per demand. This can work for allocating resources to users. For example, a cloud computer facility that serves European users during European business hours with a specific application (e.g., email) may reallocate the same resources to serve North American users during North America's business hours with a different application (e.g., a web server). This approach helps maximize the use of computing power while reducing the overall cost of resources by using less power, air conditioning, rack space, etc. to maintain the system. With cloud computing, multiple users can access a single server to retrieve and update their data without purchasing licenses for different applications.

The term "moving to cloud" also refers to an organization moving away from a traditional CAPEX model (buy the dedicated hardware and depreciate it over a period of time) to the OPEX model (use a shared cloud infrastructure and pay as one uses it).[dubious – discuss]

Proponents claim that cloud computing allows companies to avoid upfront infrastructure costs, and focus on projects that differentiate their