How is cloud computing defined?

Cloud computing is defined as the delivery of computing services over the internet. This encompasses a wide range of services, including storage, databases, servers, networking, software, analytics, and intelligence, among others. The primary characteristic that distinguishes cloud computing is its ability to provide on-demand access to computing resources without the need for direct active management by the user. Users can access these services via the internet, allowing for flexibility and scalability that traditional computing environments often lack.

This delivery model enables businesses and individuals to use IT resources as needed, leading to cost efficiency and enhanced productivity. By utilizing cloud services, users can benefit from the ability to scale resources up or down quickly and only pay for what they use, which is a significant advantage over maintaining physical servers or installing software locally.

In contrast, the other options do not capture the essence of cloud computing. Storing data solely on physical servers does not align with the concept of accessibility and flexibility that cloud computing offers. Installing software on personal computers is a traditional model of software deployment, which does not exploit the benefits of cloud-based solutions. Optimizing local server performance is an operational consideration for physical infrastructures but does not pertain to the cloud model itself.