What is a key characteristic of cloud computing?

Cloud computing is primarily characterized by its ability to provide rapid innovation and economies of scale. This characteristic arises from the way cloud services are structured and operate.

Cloud computing allows users to access a vast pool of computing resources over the internet, which can scale dynamically according to demand. This on-demand nature enables rapid deployment of new services and features, allowing businesses to innovate quickly without the need for significant investment in physical infrastructure.

Additionally, economies of scale refer to the cost benefits that organizations experience when using cloud services. As cloud service providers manage large data centers that serve many clients, they can achieve cost savings through efficiency and shared resources. For an organization, this means lowering operational costs and increasing access to advanced technology without needing to own and maintain physical servers.

The other choices do not reflect the essence of cloud computing. Local storage and reliance on physical servers contradict the concept of cloud services, which focus on remote storage and flexibility. Fixed resources limit the scalability aspect that is fundamental to cloud computing.