Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.
Another defination:
An Internet based computing paradigm that delivers on-demand software and hardware computing capability as a ‘service’ through virtualization where the end user is completely abstracted from the computing resources.
Cloud is a parallel and distributed computing system consisting of a collection of inter-connected and virtualized computers that are dynamically provisioned and presented as one or more unified computing resources based on service-level agreements (SLA) established through negotiation between the service provider and consumers.