Cloud computing refers to applications and services that are accessed via the internet through a web browser rather than being installed on a physical device. It involves delivering computing resources such as databases, software, storage, and applications over the internet. There are three main service models for cloud computing: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). IaaS provides basic storage and networking capabilities, PaaS provides platforms for building apps, and SaaS provides ready-to-use software to customers. Cloud computing offers benefits like reduced costs, increased scalability and flexibility, and rapid deployment of applications.