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A simple explanation is that the cloud or cloud computing means storing or accessing data and programs over the internet instead of your computer's hard drive. The Cloud just means Internet. The purpose of the Cloud is to share. Cloud computing is a concept, more than a technology - which is to say it is a new way of approaching the use of existing technology. Rather than owning the software involved in that technology yourself (which, as a business user, can often require large expenditures in terms of annual licenses and the upfront costs of the packages themselves), you lease it from cloud computing service providers. That is, the service providers that run cloud computing stations for your industry own all the latest software and tools, and you pay them a monthly or as you go fee for their use. The advantages of this kind of scheme are immediately obvious. You might not be able to afford the latest and best versions of all the commonly used software in your industry. You probably can't justify the expense of a piece of software that is only used very occasionally in your industry. But when your cloud computing service providers own it all already and you just have to pay to hire it - well, then you can afford to use the best of everything whenever you need it.

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Q: What is the pourpose of the cloud?
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