What characteristic is essential for cloud computing?

Dynamic resource allocation is a fundamental characteristic of cloud computing that allows for flexible and efficient utilization of computing resources. This capability enables cloud services to automatically adjust resource allocation based on demand, allowing users to scale their resources up or down as needed.

This flexibility is crucial for various applications that experience fluctuating workloads, such as websites with variable traffic or applications requiring additional computational power during peak periods. This dynamic approach contributes to cost-effectiveness, as organizations only pay for the resources they use, avoiding the expense of maintaining a static infrastructure that could lead to over-provisioning or under-utilization.

In contrast, static infrastructure indicates a fixed allocation of resources, which does not leverage the scalability that defines cloud computing. High physical server dependence implies a reliance on on-premises hardware, which is contradictory to the cloud's model of abstracting physical resources. Lastly, on-premises data management indicates that data is managed within a local infrastructure rather than utilizing cloud services that provide broader, scalable management options.