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 remaining competitive.

Cloud computing enhances collaboration by allowing employees to access files and applications from anywhere with an internet connection. This capability facilitates real-time collaboration on projects, which is crucial for productivity, especially in a globalized work environment where teams may be spread across different locations.

Cloud computing provides the necessary infrastructure and tools for effectively applying artificial intelligence and machine learning, offering scalable storage and processing power. It also supports the Internet of Things by delivering the bandwidth and resources needed to connect and manage a vast network of devices, making these technologies more accessible and practical for businesses.