Cloud computing provides on-demand, scalable, and measured computing resources as a service on the internet. It offers operational expenditure (OpEx) advantages over capital expenditure (CapEx) models of on-premise infrastructure. The main types of cloud services are Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). While cloud improves business agility, challenges include security, integration with existing systems, data migration, and ensuring network and architecture designs support cloud models.