Sage 50 vs the cloud

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So my bosses are talking about using the cloud I am not familiar with this? Could someone help to explain it. Does it just mean that everything is saved to the cloud instead of on a hard drive? if that is correct has anyone had any problems that I would need to watch for? Would I still be able to work remotely using the cloud? 

Just needing to understand before I say yes and then not know what I am doing LOL. 

Thanks for your help. 

Sherry