Cloud computing refers to a model of network computing where applications and services run on remote servers accessed over the internet rather than local devices. It allows users to access computing resources like servers, storage, databases, networking, software and analytics from anywhere. Key characteristics include on-demand self-service, broad network access, resource pooling, rapid elasticity and measured service. Major cloud service models are software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS).