The term "cloud computing" refers to:

The term "cloud computing" encompasses the delivery of various services, such as storage, processing power, and applications, over the Internet. This model allows users to access resources on-demand, without the need for physical hardware installation or maintenance on-site. By leveraging remote servers located in data centers, cloud computing offers scalability, flexibility, and cost-efficiency, as users can typically pay for the services they utilize rather than maintaining their own infrastructure.

Storing data on local servers, using physical hardware for data processing, or networking via traditional methods do not align with the principles of cloud computing, which emphasizes remote access to resources and services facilitated via the internet. The essence of cloud computing is its ability to provide access to computing power and storage as a service rather than as a physical product, making option B the clear and most appropriate definition.