Final answer:
Cloud resources being pooled refers to a model in cloud computing where a provider's resources, such as storage and processing power, are shared among multiple clients. Resources are dynamically allocated based on demand, which improves efficiency and allows for quick scalability.
Step-by-step explanation:
When we say that cloud resources are pooled, we are referring to a concept known as resource pooling. This is one of the five essential characteristics of cloud computing as defined by the National Institute of Standards and Technology (NIST). Resource pooling means that the cloud provider's computing resources, such as storage, processing power, memory, and network bandwidth, are shared among multiple tenants (clients or customers). When resources are pooled, users draw from a common set of resources, which are dynamically allocated and reallocated according to demand. This model maximizes efficiency because the provider can optimize resource use and can quickly scale up or down as required, without any need for physical changes in infrastructure.
The idea is like a public utility, such as electricity or water, where the supply is made available to many customers from a shared infrastructure, and customers use what they need. In a cloud environment, this means a business may not know the exact location of its data or which particular server is hosting its applications, as the provider manages these details to ensure that all resources are utilized to their fullest potential and that customers' needs are met on demand.