Cloud computing
On-demand access to compute, storage, and managed services over the internet — billed by consumption rather than upfront capital purchase.
Updated 2026-05-113 min read
Definition
Cloud computing is the delivery of IT resources — servers, storage, databases, networking, and higher-level services — over the internet on a pay-as-you-go basis, typically from hyperscale providers such as AWS, Microsoft Azure, and Google Cloud.
Why it matters
Consumption billing means spend grows with every deployment. Without governance, cloud costs scale faster than the business value they support — and harder to forecast than fixed datacenter budgets.
Related Terms
Cloud financial management
The discipline of governing cloud spend — visibility, allocation, commitments, optimization, and accountability across engineering and finance.
Cloud cost allocation
Attributing cloud spend to teams, products, or environments using tags, accounts, and policies — the basis for showback and chargeback.
Cost allocation tags
Metadata applied to cloud resources (env, owner, service) that drives accurate showback, chargeback, and budget alerts.