Cloud computing is a technology that uses the internet and remote servers to maintain data and applications. It provides hardware, software, and networking services to clients through simple interfaces. Key characteristics include services being remotely hosted, ubiquitously available, and operating under a utility computing model where users pay for only what they use. Common cloud service models are Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). While the cloud provides advantages like unlimited storage, easy collaboration, and universal access, it also has disadvantages such as requiring a constant internet connection and potential security and availability issues.