Cloud computing is a general term for internet-based computing where shared servers provide resources, software, and data to computers and other devices on demand. It provides scalable, elastic resources without upfront investment for infrastructure. Key characteristics include pay-for-use, ubiquitous network access, resource pooling, rapid elasticity, and measured service. Common cloud service models are SaaS, PaaS, and IaaS. While the cloud provides opportunities like reduced costs and universal access, disadvantages include reliance on internet connectivity and potential security and control issues.