What “the cloud” actually means

The short version

The cloud means using computers, storage and software that live in someone else’s data center, reached over the internet, instead of on equipment in your own office. You pay for what you use, usually monthly, and the provider looks after the buildings, power, hardware and much of the maintenance.

Three common kinds

• Software you use through a browser or app, such as Microsoft 365, online accounting or payroll. You just sign in.
• Storage, such as OneDrive and SharePoint, where files live online and sync to your devices.
• Servers you rent, such as Microsoft Azure, where your own applications run on the provider’s hardware.

What you gain

• Work from anywhere, on any device.
• No server to replace every few years.
• Microsoft and others handle the data center, power and hardware.

What stays your responsibility

Moving to the cloud does not hand everything over. Your accounts, your data, your settings and who has access remain yours to manage. (Read more.) Costs also need watching, since cloud bills grow quietly.