What it is
Cloud computing is a model for delivering computing services over the internet ("the cloud"). Instead of owning and maintaining their own computing infrastructure, users can access resources like servers, storage, databases, networking, software, and analytics from a third-party provider, such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud. This pay-as-you-go model offers flexibility, scalability, and cost efficiency, as users only pay for the resources they consume, avoiding large upfront capital expenditures.
Cloud computing is a ubiquitous topic in tech and business news, as companies increasingly migrate their operations to the cloud for efficiency and innovation. It forms the backbone for many modern applications, including AI services, and is a major revenue driver for big tech companies. Investors monitor the growth of cloud providers, their market share, and new service offerings, as these trends reflect broader technological adoption and impact the profitability of both cloud companies and their enterprise customers.
Why it matters
Cloud computing underpins vast segments of the digital economy, including most AI infrastructure, making it a key indicator of tech sector health.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice