What is a key characteristic of cloud computing regarding IT capabilities?

A key characteristic of cloud computing is that it delivers services as metered services over a network, which means that resources are provided and consumed based on usage. This model allows users to pay only for what they use, facilitating scalability and flexibility. Organizations can easily scale their IT resources up or down based on demand, leading to more efficient utilization and cost management.

By leveraging the cloud, businesses can access a wide range of services, such as storage, processing power, and applications, without the need to invest heavily in physical hardware and infrastructure. This metered approach is one of the main advantages of cloud computing and is a significant factor driving its adoption in various sectors, as it allows for agile responses to changing business needs.

The other choices do not accurately represent the cloud computing model. For example, requiring physical hardware contradicts the cloud's advantages, which often involve offloading hardware responsibilities to third-party service providers. Offering only on-site data processing is not consistent with cloud computing, which enables remote access to resources. Lastly, while cloud computing can reduce the need for some infrastructure, it does not completely eliminate it, as users may still require local systems and integrations alongside cloud services.