Cloud computing is essential for businesses as it provides scalability and flexibility, allowing organizations to adjust their operations based on demand without significant upfront investments in hardware or software. This is particularly beneficial for startups and small businesses, enabling them to grow as needed while maintaining cost-efficiency.

Cloud computing enhances collaboration by allowing employees to access files and applications from anywhere with an internet connection. This capability supports real-time collaboration on projects, making teamwork more efficient, especially for globally dispersed teams.

Cloud computing supports emerging technologies such as AI and IoT by providing the necessary infrastructure, storage, and processing power. It enables organizations to train machine learning models efficiently and manage the vast amounts of data generated by IoT devices, facilitating innovation and development in these fields.