Renting a house vs buying it. Either way you have a space where you can store your stuff, eat, and sleep. Renting requires less money up front ($1000 security deposit on a rental vs $20,000 down payment on a house) and renting has a shorter commitment (1 year lease vs 30 year mortgage). But over the long run, a rental will cost more than buying the house, so there are trade offs.
With cloud computing you are renting someone else’s server instead of setting up your own. This saves you the cost of buying the hardware (servers, network equipment, uninterruptible power supply), paying for the network bandwidth, and hiring someone to manage the system. Also, if you have a sudden need for more capacity the cloud provider can usually scale you up much faster than on your own.
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