In cloud computing, what does "on demand" refer to?

In cloud computing, "on demand" refers to resources that can be accessed as needed. This characteristic allows users to scale their computing resources up or down based on their immediate requirements without needing to invest in physical hardware or infrastructure. It emphasizes the flexibility and efficiency of cloud services, where users pay only for the resources they utilize at any given moment, rather than maintaining a constant supply that may exceed their actual needs. This model is essential for businesses that seek to optimize costs and improve efficiency, as it aligns computing resources closely with business demands.