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Major cloud providers like AWS have enormous server farms where hundreds of thousands of servers and disk drives are maintained along with the network cabling necessary to connect them. A well‐built virtualized environment could provide a virtual server using storage, memory, compute cycles, and network bandwidth collected from the most efficient mix of available sources it can find.

A cloud computing platform offers on‐demand, self‐service access to pooled compute resources where your usage is metered and billed according to the volume you consume. Cloud computing systems allow for precise billing models, sometimes involving fractions of a penny for an hour of consumption.