How is cloud computing defined in the context of business applications?

Cloud computing in the context of business applications is defined as delivering computing services over the internet. This definition encompasses a wide range of services that businesses rely on, such as storage, databases, servers, networking, software, analytics, and intelligence, all of which are accessed through the internet rather than being housed locally on company servers or personal computers.

The essence of cloud computing is its ability to provide flexibility, scalability, and cost-efficiency by allowing businesses to access resources on-demand without the need to invest heavily in physical infrastructure. Companies can leverage cloud services to enhance their operations, support remote work, collaborate effectively, and quickly adapt to changing market needs.

In contrast, the other choices focus on traditional models of IT infrastructure—storing data locally, providing fixed-term licenses, and using physical hardware—none of which encapsulates the core essence of what cloud computing offers in a business context. By delivering computing services via the internet, cloud computing facilitates innovation and provides significant advantages in agility and resource management.