Cloud computing means being able to access computing resources such as servers, storage, databases and applications over the internet on demand, in the same way a household draws electricity from a utility grid without owning a power plant. The user pays for and uses only what is needed at a given time, and the resources scale up or down as demand changes, with the actual hardware managed remotely by the service provider. This model became a major talking point in the IT industry around 2010 as companies like Amazon, Google and Microsoft expanded their cloud offerings, moving businesses away from owning and maintaining their own servers.
The other options describe cloud computing incorrectly. It is not simply a way to arrange desktop computers, nor is it defined by how little space a piece of software takes on a hard drive, since cloud computing is about remote resources rather than local storage size. It is also not the same as the World Wide Web, which is a system of linked documents accessed through browsers; cloud computing is a broader model for delivering computing power and storage as a service.