The cloud, in technology terms, is made possible by the Internet.

The devices within

our physical space (i.e. computer, phone, tablet) have limitations. For example, the
storage capacity on a hard drive is finite. However, we can use our devices to access
near infinite resources in other locations with a simple internet connection.

Cloud computing is the delivery of applications, platforms, data storage, operating

systems, and other computing resources over the Internet. In the Cloud model, you
pay a regular subscription fee to consume certain services from a third party provider.

This is similar to how you consume services in your home, such as water and
electricity. You pay the utility provider on a subscription basis. And their provider is
responsible for maintaining the infrastructure, such as water pipes and power lines,
used to deliver these services to you.
In a traditional on-premise model, the customer would be responsible for providing
and maintaining the server, the software, and all the necessary resources and
personnel.
But now with the cloud computing model, the customer can subscribe to only the
computing resources they need. Access them almost instantly, and only pay for direct
usage.
A cloud deployment model defines how a cloud service is made available to users.

Cloud software is delivered "as-a-Service", where a consumer of the service is billed

on a subscription basis for what they use. The subscription-based digital model is
highly flexible and agile because you can easily scale up or down as needed.

Compare three common models to find out what you can expect from a Software as
a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service
(IaaS). Most companies now use a mix of the three, and the lines between them can
sometimes blur.
SAP is one of the world's leading producers of software for the management of
business processes, developing solutions that facilitate effective data processing and
information flow across organizations. We have more than 100 solutions covering all
business functions, and the largest cloud portfolio of any provider.