Cloud computing allows users to access computer programs, files, and other application data over the internet rather than on a local hard drive. It provides on-demand access to a shared pool of configurable computing resources like servers, storage, databases, software, analytics and more that can be provisioned quickly with minimal management effort. Cloud services include Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). The cloud offers advantages like lower costs, improved access, automatic updates, unlimited storage, and easier collaboration compared to traditional computing methods.