Cloud computing enables ubiquitous and on-demand access to shared pools of configurable computing resources. It is composed of essential characteristics like rapid provisioning and release of resources with minimal management effort. There are three main service models - Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). The document also discusses the different types of cloud including public, private, and hybrid clouds. Using cloud computing provides advantages to enterprises like setting up a virtual office and saving costs compared to purchasing their own systems and equipment.