“The cloud” is a friendly way of describing web-based computing services that are hosted outside of your home or organization. When you use cloud-based services, your IT infrastructure resides off your property (off-premises), and is maintained by a third party (hosted), instead of residing on a server at your home or business (on-premises) that you maintain. With Office 365, for example, information storage, computation, and software are located and managed remotely on servers owned by Microsoft. Many services you use every day are a part of the cloud—everything from web-based email to mobile banking and online photo storage.
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Because this infrastructure is located online or “in the cloud,” you can access it virtually anywhere, from a PC, tablet, smartphone, or other device with an Internet connection.