Cloud – In the cloud environment, the data/infrastructure is set up at some remote location and service provider owns it. The connectivity will be either VPN or Internet, however, the most significant difference is that there is a subscription to services that one want to use, and that makes it different. Let us understand this by analogy.
A few months back I have written a series of blog on discussing and explaining the Cloud environment. I assume that these post will help you understand the concept. The links to all the posts are given below, let me know how you like it.