What does the term "cloud computing" refer to?

Cloud computing refers to the delivery of computing services over the internet, which includes a wide range of resources such as storage, processing power, and applications. This model allows users to access these services without the need for direct active management or physical infrastructure on-site. The essence of cloud computing lies in its ability to enable users and organizations to leverage shared pools of configurable resources, providing flexibility, scalability, and efficiency.

With cloud computing, users can access their data and applications from any device with internet connectivity, making it an essential aspect of modern IT solutions. This model eliminates the need for costly on-premise hardware and provides the capability to scale services up or down based on demand, thereby optimizing costs and operational efficiency.

In contrast, the other options reflect traditional computing practices rather than the cloud model. On-premise servers and local installations are reliant on physical infrastructure located within an organization's premises, while physical hardware represents the tangible components necessary for computing but does not encompass the flexibility and service delivery aspects defined by cloud computing.