Cloud computing revolutionizes traditional computing by providing scalable, resource-shared, and virtualized computing services accessible via the internet. It encompasses three core components: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), allowing users to utilize computing power without heavy investment in local hardware. The benefits include cost efficiency, flexibility, global accessibility, and enhanced security, making it applicable across various sectors like big data analytics, AI, gaming, and healthcare.