Cloud computing refers to provisioning computational resources like applications and storage over the Internet. It allows users to access software from anywhere without installing it, and shares computer resources between users. Key benefits include reduced costs since users pay based on usage, increased access via any Internet-connected device, improved security from data distribution, high reliability, and easy maintenance of up-to-date applications without user downloads. Common cloud services are SaaS, PaaS, and IaaS, providing software, development platforms, and basic infrastructure respectively.