Cloud applications are software programs that run on remote servers instead of being installed on a local computer. Users access these applications over the internet, allowing them to work from anywhere with a connection. Examples include Google Drive and Microsoft Office 365, which enable collaboration and file sharing in real-time. These applications are often subscription-based, meaning users pay a fee to use them rather than purchasing a one-time license. This model allows for automatic updates and scalability, making it easier for businesses and individuals to adapt to changing needs without significant upfront costs.