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Cloud computing is basically a pool of computers which combine resources and are connected together to make the computing process much faster and better. This is usually offered by cloud providing companies which allow you to use their services for free to some extent and later pay for it.
You can perform all your computing tasks in the cloud which eliminates the need for more resources on your desktop. You can access it through your Laptop or Smartphone which gives you more flexibility as your data is not restricted to you Work Computer only.
Cloud computing comes into focus only when you think about what IT always needs: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities.
Cloud computing is a popular computer term which has different interpretations. In computer science by 'cloud' is understood a network of computing devices which work together to provide services. More specifically, in web hosting cloud computing means that all web hosting services (web, ftp, mail, etc) run on many different servers ensuring that a failure in one device will not cause a service failure.
This is the benefits:
Redundant data storage - even if one hard disk fails your data is safe and will continue to be available automatically on another one;
Dedicated resources - the latest cloud computing technology ensures that your resources are dedicated to you and not shared to others. This includes RAM and CPU according to the plan you choose.
No single point of failure - each part of the service is ensured to be redundant and distributed. This means that there are no hardware problems, nor software problems from the underlying technology.
Resource usage efficiency - best options to scale to your usage and naturally pay only what you use.
Security - each cloud user can be reliably isolated in his / her own environment. This ensures that security problems will be also isolated in the otherwise shared environment.