Cloud computing is the on-demand availability of computer system resources, especially data storage (cloud storage) and computing power, without direct active management by the user. Large clouds often have functions distributed over multiple locations, each location being a data center. Cloud computing relies on sharing of resources to achieve coherence[clarification needed] and economies of scale, typically using a "pay-as-you-go" model which can help in reducing capital expenses but may also lead to unexpected operating expenses for unaware users.
Cloud computing exhibits the following key characteristics:
Agility for organizations may be improved, as cloud computing may increase users' flexibility with re-provisioning, adding, or expanding technological infrastructure resources.
Cost reductions are claimed by cloud providers. A public-cloud delivery model converts capital expenditures (e.g., buying servers) to operational expenditure. This purportedly lowers barriers to entry, as infrastructure is typically provided by a third party and need not be purchased for one-time or infrequent intensive computing tasks. Pricing on a utility computing basis is "fine-grained", with usage-based billing options. As well, less in-house IT skills are required for implementation of projects that use cloud computing. The e-FISCAL project's state-of-the-art repository contains several articles looking into cost aspects in more detail, most of them concluding that costs savings depend on the type of activities supported and the type of infrastructure available in-house.
Device and location independence enable users to access systems using a web browser regardless of their location or what device they use (e.g., PC, mobile phone). As infrastructure is off-site (typically provided by a third-party) and accessed via the Internet, users can connect to it from anywhere.
Maintenance of cloud environment is easier because the data is hosted on an outside server maintained by a provider without the need to invest in data center hardware. IT maintenance of cloud computing is managed and updated by the cloud provider's IT maintenance team that reduces cloud computing costs compared with the on-premises data centers.
