Cloud computing is a network-based computing model that provides on-demand access to a shared pool of configurable computing resources via the internet, allowing users to access software, infrastructure, and services without owning physical hardware. Its evolution includes historical milestones from the 1960s to the introduction of major services like Amazon's EC2 and Salesforce.com, which have shaped its adoption in both public and private sectors. The key characteristics of cloud computing include resource pooling, broad network access, rapid elasticity, and a pay-as-you-go pricing model.