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In this video tutorial, the instructor addresses the common student question: "What is the cloud and how does it work?" They explain that cloud services refer to on-demand services accessed via the internet from cloud computing providers. These services are categorized into four types: software, data, platform, and storage. The lesson focuses specifically on cloud storage, as students are required to create a OneDrive account for their classwork, eliminating the need for physical flash drives, which can easily be lost. The instructor outlines five key components of cloud storage using the acronym SAVING: S for software, A for access, V for virtual, I for internet-based, and N for networked.