The document discusses scaling challenges that organizations face as demand increases. It presents cloud computing as a solution that provides virtualized resources on demand, which reduces complexity and costs compared to buying physical hardware. Cloud computing offers automatic scaling of systems and pay-per-use pricing. The document outlines common cloud computing models including Software as a Service, Platform as a Service, and Infrastructure as a Service, and provides examples such as Amazon S3, Google App Engine, Heroku, Microsoft Azure, and Amazon EC2.