Cloud computing involves linking many computers together over the internet to form a large virtual computer. It provides access to computer resources and services via the internet rather than hardware and software locally installed. There are three main categories of cloud computing: Infrastructure as a Service (IaaS) provides virtual servers and storage; Platform as a Service (PaaS) provides development environments; and Software as a Service (SaaS) provides access to apps already in the cloud. While cloud computing offers benefits like flexibility and cost savings, it also presents disadvantages such as security risks and lack of control.