Cloud computing relies on sharing computing resources over the internet rather than having local servers. It allows users to access applications, servers, and storage from any device. There are three main types of cloud models - Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). IaaS provides on-demand access to computing resources like storage, networking, and servers. PaaS provides platforms for developing and running applications without managing the underlying infrastructure. SaaS provides access to applications over the internet without installation or maintenance of software.