Cloud Computing
In past, many organizations were facing the problem of underutilization of their servers which cost them a lot of money on hardware with 10% of their capabilities. To overcome the problem of underutilization, with the help of virtualization, multiple virtual machines could run on one virtual host(physical server), this could get more usage of hardware, save cost, space and cooling. Virtualization has disadvantages as well.
Cloud computing is the on-demand availability of computer system resources such as virtual machine, storage or applications without direct active management by the user. You typically pay only for services you use.
Cloud providers like Amazon Web Service, MS Azure, etc own datacenters and manages infrastructure for you such as hardware, networking, virtualization etc. Client does not get direct access to server but pay for service utilization. The cloud provider charge services by minutes or by hour. It is easy for client to create new resource when needed and shut down when not required to save money.
