Define and discuss cloud computing. The term “cloud computing” is used to refer to the abstraction of web-based computers, resources, and services that can be utilized by system developers in the implementation of complex web-based systems. Cloud resources are regarded as virtual, which allows cloud-based solutions to be scaled up or down in size depending on demand. Discuss how cloud computing has changed how companies budget for software solutions. Cloud computing allows organizations to only pay or the resources they consume. This implies that organizations that initially relied on expensive data centers to house their processing resources are shifting costs and maintenance efforts to pay-as-you-go, scalable, cloud-based alternatives. Define scalability and discuss how the cloud impacts it Scalability refers to the ability of a site or application to use additional resources on demand. The site or application may scale up to utilize additional resources when the system experiences high user demand and scale down when demand goes down (Jamsa, 2012). Good scalability and elasticity are among the main reasons behind the adoption of cloud computing in many organizations (Rana et al., 2019). This allows cloud users to add or reduce cloud resources depending on demand. Define virtualization and discuss how the cloud impacts it Virtualization refers to the use of hardware and/or software to create the perception of something. Using virtualization allows one server to be made to appear to be many servers, a computer appears to be running multiple operating systems (Jamsa, 2012). Cloud-computing is an important enabler of virtualization. References Jamsa, K. (2012). Cloud computing: SaaS, PaaS, IaaS, virtualization, business models, mobile, security and more. Jones & Bartlett Learning. Rana, M. E., Farooq, U., & Rahman, W. N. (2019). Scalability enhancement for cloud-based applications using software oriented method. International Journal of Engineering and Advanced Technology, 8(6), 4208-4213.