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 and 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.During the 1960s, the initial concepts of time-sharing became popularized via RJE (Remote Job Entry);[14] this terminology was mostly associated with large vendors such as IBM and DEC. Full-time-sharing solutions were available by the early 1970s on such platforms as Multics (on GE hardware), Cambridge CTSS, and the earliest UNIX ports (on DEC hardware). Yet, the "data center" model where users submitted jobs to operators to run on IBM's mainframes was overwhelmingly predominant.
In the 1990s, telecommunications companies, who previously offered primarily dedicated point-to-point data circuits, began offering virtual private network (VPN) services with comparable quality of service, but at a lower cost. By switching traffic as they saw fit to balance server use, they could use overall network bandwidth more effectively.