What does the term 'cloud computing' fundamentally imply about IT capabilities?

The term 'cloud computing' fundamentally implies that IT capabilities are delivered on-demand over a network. This model means that users can access computing resources such as servers, storage, applications, and services via the internet, rather than relying solely on local infrastructure. It provides flexibility, scalability, and convenience, allowing organizations to adjust their IT resources based on current needs without the necessity of heavy on-site equipment or management.

In contrast, local servers indicate a more traditional, fixed infrastructure model, which is not the essence of cloud computing. Additionally, cloud resources typically require less local management, as the service provider often handles maintenance and updates. While some cloud services may offer free tiers, this is not universally true, and cloud computing as a concept does not guarantee free access, thus emphasizing the on-demand delivery model instead.