What is 'cloud computing'?

Cloud computing refers to the delivery of computing services such as storage, processing power, and applications over the internet, rather than relying solely on local servers or personal devices. This model allows users to access and manage data and services remotely, providing flexibility, scalability, and efficiency.

With cloud computing, users can easily scale resources up or down according to demand, which is particularly beneficial for businesses that experience varying workloads. It also reduces the need for substantial on-premises infrastructure, leading to cost savings on hardware and maintenance.

The other options highlight different concepts: storing data on local servers emphasizes traditional computing methods, data encryption is a security measure, and a type of software application does not encompass the broader infrastructure and service model that cloud computing represents. Thus, the correct answer outlines the core nature of cloud computing and its operational delivery method.