Cloud computing enables on-demand delivery of IT resources via the internet with pay-as-you-go pricing. Amazon Web Services (AWS) provides a wide range of services including compute, storage, and databases, allowing organizations to reduce costs, scale instantly, and deploy globally. The video explores how businesses across industries use cloud computing for various applications like data backup, software development, and analytics. It highlights AWS's comprehensive offerings, global infrastructure, and ability to drive innovation for customers ranging from startups to enterprises and government agencies.