Cloud computing is a general term for internet-based computing that takes place over the internet. It involves delivering hosted services like storage, databases, software, analytics and more via third-party data centers. Key characteristics include pay-as-you-go pricing, ubiquitous network access, resource pooling and rapid elasticity. The main advantages are lower costs, improved performance, unlimited storage and easier collaboration. However, it requires a constant internet connection and stored data may not be fully secure.