Cloud computing is the on-demand delivery of computing services over the internet, allowing users to access applications and storage from any internet-connected device. It includes public, private, and hybrid models, with services categorized as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Benefits include scalability, unlimited storage, and cost savings, while drawbacks involve the need for a constant internet connection and limited controls.