Cloud computing is a general term for services and infrastructure that are hosted remotely over the internet. It allows users to access computing resources and data storage on demand from any device. Key characteristics include pay-as-you-go pricing, ubiquitous network access, and elastic scalability. Cloud services can be categorized as infrastructure as a service (IaaS), platform as a service (PaaS), or software as a service (SaaS). Major advantages include lower costs, easier collaboration, automatic updates, and unlimited storage. Disadvantages include reliance on internet connectivity and potential security and performance issues.