To understand the potential that cloud computing has for organisations and consumers, one needs to look at what it entails. As with most concepts in the IT industry, there are almost as many definitions about cloud computing as there are perspectives.

At its most basic, cloud computing is a computing paradigm in which tasks are assigned to a combination of connections, software and services accessed over a network. This network of servers and connections is collectively referred to as the cloud. Using access points like cellphones or laptops, a person would be able to figuratively reach into the cloud and access these resources when needed.