Cloud computing allows users to access computer data and programs over the internet rather than a local hard drive. It offers advantages like unlimited storage, increased reliability if files are not lost if a personal computer crashes, and easier collaboration between multiple users. However, it also has disadvantages like requiring a constant internet connection to access files and potential security and privacy issues if data stored in the cloud is unprotected or lost. Major players in cloud computing include Amazon Web Services, Microsoft Azure, Google, and IBM.