Cloud computing refers to the provision of computing resources that can be accessed on demand, similar to how electricity is obtained from a utility. It involves the use of remote servers to store, manage, and process data instead of relying on local computers or servers. This allows users to access and utilize computing resources, such as storage, processing power, and applications, over the internet as and when needed. The analogy to electricity from a utility highlights the flexibility, scalability, and convenience of cloud computing, where resources can be easily scaled up or down based on demand.