Part of the confusion with everyone understanding cloud computing, is  every vendor has a different definition of cloud solutions based on the  products they sell.  So if you talk to Amazon, Oracle, Hosting  companies, etc. they each have their interpretation of cloud computing.  So instead of giving another definition of cloud computing, I want to  refer you to a standards definition of cloud computing from the 
National  Institute of Standards and Technology (NIST).  This standards draft  includes definitions for Iaas, SaaS, PaaS, Private Cloud, Public Cloud,  etc. Remember that cloud computing definitions and underlying  technologies are constantly evolving.  So it's best to look at standards  bodies for looking at fundamental definitions related to cloud  computing.
A highlight of the NIST definition is:
- The  working definition of cloud computing described by NIST is “a  pay-per-use model for enabling available, convenient and on-demand  network access to a shared pool of configurable computing resources  (e.g., networks, servers, storage, applications, services) that can be  rapidly provisioned and released with minimal management effort or  service provider interaction.” The draft working definition also  describes five key characteristics, three delivery models and four  deployment models.
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