Cloud computing is a type of Internet-based computing that provides shared computer processing resources and data to computers and other devices on demand. It is a model for enabling ubiquitous, on-demand access to a shared pool of configurable computing resources (e.g., computer networks, servers, storage, applications and services), which can be rapidly provisioned and released with minimal management effort.
The cloud is a network of servers, sometimes hundreds and thousands of servers, and each server has a different function. Some servers use computing power to run applications or "deliver a service."
For example, Adobe recently moved its creative services to the cloud. You can no longer buy the Creative Suite (Photoshop, InDesign, etc.) in a box set. Instead, you must pay a monthly subscription fee to use each individual service. That's why it's now called the "Adobe Creative Cloud" instead.
Other servers in the network are responsible for storing data.
For example, when you take a picture on your smartphone, it is stored on your phone's internal memory drive. However, when you upload the photos to Instagram, you are uploading it to the cloud.
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