Cloud computing allows users to access applications and store data on remote servers that can be accessed from any internet-connected device. Key benefits include lower costs, improved performance, unlimited storage, and increased data reliability and accessibility. Potential downsides include requirements for a constant internet connection and security/privacy risks if data is stored remotely. Common cloud computing service models include Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). Virtualization is also widely used in cloud computing to maximize hardware and software utilization.