What is cloud computing and how does it work?

I have been hearing a lot about cloud computing and how it has revolutionized the way we store and access data. But I am still not sure what it actually is and how it works. Can someone explain it in simple terms?

Cloud computing is the delivery of computing services, such as storage, servers, software, and databases, over the internet. Instead of storing all your data and programs on your personal computer or local server, you can access them remotely through the internet.

To understand how cloud computing works, think of it as a virtual office. A physical office has all the necessary resources for you to do your work, but it requires you to be present in the same physical location. A virtual office, on the other hand, allows you to access all the necessary resources, such as documents, files, and software, from any location with an internet connection.

One of the major advantages of cloud computing is scalability. With traditional on-premise systems, you had to estimate your storage and computing needs in advance and purchase expensive hardware accordingly. This meant either paying for resources you didn't end up using or constantly upgrading your hardware as your needs grew. With cloud computing, you can easily increase or decrease your computing resources as needed.