A simple cloud server definition is cloud servers are virtual (not physical) servers running in a cloud computing environment that can be accessed on demand by unlimited users.

Cloud servers work just like physical servers and they perform similar functions like storing data and running applications. Because cloud services are hosted by third-party providers, they deliver computing resources over a network, most often through the internet.

Cloud servers are created by using virtualization software (known as a hypervisor) to divide physical servers into multiple virtual servers. A hypervisor abstracts the server's processing power and pools them together, creating virtual servers.