Cloud computing involves applications and files being hosted on remote servers and data centers that are accessible via the internet. It allows users to access services like word processing, calendars, and presentations from any device with an internet connection. Common cloud services include Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). SaaS provides hosted applications that users subscribe to, while PaaS and IaaS provide resources for building and hosting custom applications. Major benefits of cloud computing include reduced costs, scalability, universal access, and easier collaboration. Security, reliability, and standardization remain risks associated with cloud services.