Which of the following best describes cloud computing?

Cloud computing is fundamentally characterized by the on-demand availability of computing resources, which allows users to access and utilize a wide range of services and infrastructure over the internet whenever they need them. This model supports flexibility and scalability, enabling organizations to quickly adjust their resource usage based on current demands without the need for significant upfront investments in physical hardware.

The correct choice emphasizes this essential aspect of cloud computing, highlighting that resources such as storage, networking, and processing power can be provisioned and accessed as needed. This dynamic resource allocation is a key benefit of cloud services and is instrumental in enabling businesses to innovate and respond swiftly to changes in market conditions.

In contrast, the other options describe scenarios that do not align with the cloud computing model. Permanent storage on physical devices suggests a more traditional approach to data storage, while local hosting of applications implies a reliance on on-premises infrastructure, which lacks the flexibility inherent to cloud solutions. Additionally, exclusive access to servers for single customers describes a dedicated hosting environment rather than the shared, multi-tenant nature of most cloud services.