In the cloud, there’s no physical server in your office — you use resources from a provider (e.g. AWS, Microsoft Azure) and manage them over the internet. Servers, file storage, email or whole applications can run in the cloud.
The upside is that you don’t look after hardware and resources scale easily. But cloud data still needs backups, correct access settings and cost control.
Example
One copy of the office backup in cloud storage — if something happens at the office, the data is safe in another location.