Cloud computing is the newest buzz in the world of computers and the internet. The big questions start with exactly what it is. Most people want to know how does cloud computing work? The first thing to understand about this technology is that a cloud is essentially a floating server that holds information that can be accessed from any computer and not just on a personal hard drive. No need to worry about a system crash, a fried hard drive, or overloading a hard drive by clogging it up with personal/business text files or digital files.

How does cloud computing work? The cloud server and data storage system is located in a real place but is more virtual because it can be accessed from any computer, anywhere, any time. These data centers can store any information needed, whether it is video, audio, files, or images. These are often run by large companies that offer the average consumer a service by allowing this information on their system and save businesses constant updates and the ability to run highly technical programs with little effort.

The terminology alone has a great deal of people stumped asking themselves, how does cloud computing work? The reality is that people are already using these systems and don't realize it. Some of the most well known systems are free emails such as Yahoo, Gmail, Hotmail and Aol. Another is blogging with systems such as Wordpress and Blogger. Aweber is a great resource for email marketing that is considered cloud computing.

We also have various cloud computing diagrams for your reference.

These videos are informative, to the  point and fun to watch!

From Wikipedia:

Cloud computing is Internet- ("cloud-") based development and use of computer technology ("computing"). In concept, it is a paradigm shift whereby details are abstracted from the users who no longer need knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them. It typically involves the provision of dynamically scalable and often virtualized resources as a service over the Internet.

The term cloud is used as a metaphor for the Internet, based on how the Internet is depicted in computer network diagrams and is an abstraction of the underlying infrastructure it conceals. Typical cloud computing providers deliver common business applications online which are accessed from a web browser, while the software and data are stored on the servers.

These applications are broadly divided into the following categories: Software as a Service (SaaS), Utility Computing, Web Services, Platform as a Service (PaaS), Managed Service Providers (MSP), Service Commerce, and Internet Integration. The name cloud computing was inspired by the cloud symbol that is often used to represent the Internet in flow charts and diagrams."