Rent servers and storage
An organisation can rent virtual servers to run a website, storage for its files, and a database for its records. It can add or remove servers as the website gets busier or quieter.
A cloud provider runs the physical data centres. The organisation still sets up its app, controls who can access it, and protects its data.
The cloud has a location
The software still runs on physical machines in particular regions. The provider looks after the hardware, but the organisation still needs to manage costs and keep its service reliable and secure.