What is cloud computing primarily characterized by?

Cloud computing is primarily characterized by the use of virtual servers on the Internet to provide hosted services. This encompasses a range of functionalities, including storage, processing power, and software applications, all made accessible over the Internet without the need for local installations.

The essence of cloud computing is to deliver resources and services in a scalable, flexible manner, allowing users to access data and applications from anywhere with an Internet connection. The ability to quickly provision and scale resources up or down as needed is a key advantage of cloud computing, driven by the underlying infrastructure of virtual servers.

In contrast to the correct choice, having solely local server capabilities does not capture the nature of cloud computing, as it implies a localized approach rather than a distributed system reliant on the Internet. Similarly, a proprietary software installation requirement indicates a model that is fixed and possibly inflexible, which goes against the adaptable nature of cloud-based services. Finally, a focus solely on mobile applications overlooks the broad spectrum of services and applications available through cloud computing, which includes not just mobile solutions but also web applications and enterprise-level resource management.