The Internet and email each revolutionized the world in their own ways, and cloud computing looks all set to be the next iteration. There are libraries full of books on this subject, each with a different view of what it means. The simple definition is that the internet is used to provide on-demand access to resources, data and applications.This functions in a way similar to utilities such as an electricity grid. A user just opens up a browser and accesses the required application and/or resource. The user then gets billed based on the usage, same as with utilities.
In order for this to work, providers offer data centers which simultaneously handle the resource requests from multiple clients. With everything in the data centers, the company does not need to have its own IT setup. This means companies can get rid of existing setups and the associated staff.