Cloud computing allows users to access applications and store data on remote servers rather than local hardware. The cloud consists of servers that provide computing resources and deliver services. There are different types of clouds including public, private, community, and hybrid clouds. The basic components of a cloud solution are clients, data centers containing distributed servers, and services like SaaS, PaaS, and IaaS. Cloud computing provides advantages like lower costs, unlimited storage, automatic software integration, and easy access to information from any internet-connected device.