Please explain.
Currently a rapidly evolving area. This refers to services delivered over the internet. Some examples explain it best. Gmail from Google, your email is not stored on your computer (although it could be), rather it is stored by Google and you can access it anywhere you have a connection to the internet. Another example is "Dropbox", which provides "Cloud Storage". You can save your files within their storage area and again you gain access from anywhere using an internet connection.
