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In this video tutorial, the instructor addresses the common question from students about what the cloud is and how it works, focusing specifically on cloud storage. Cloud services are defined as on-demand services available via the internet from cloud computing providers, categorized into four types: software, data, platform, and storage. The lesson emphasizes the importance of cloud storage, using OneDrive as an example, and notes that students will utilize cloud-based services instead of flash drives to avoid potential loss. The explanation is structured around the acronym SAVING, which highlights key concepts: L for login, B for off-site, U for uploaded, and D for additional related ideas.