Gmail, Drive, Salesforce. You sign in and use it — nothing to install, patch, or host. The entire stack underneath is someone else's job.
Beneath the app sits a managed platform — runtime, libraries, scaling, load-balancing. You push code; the platform decides where and how it runs.
That whole platform runs inside a single virtual machine — a rented slice of one physical server. The other slices belong to other tenants. This slice is the unit IaaS actually sells.
Strip everything away and you hit the floor: racks of physical servers, power, cooling, network — someone on call at 3am. IaaS rents you slices of this. You own the OS and up.
Every app you opened today lives in places like this — halls of servers drawing megawatts, cooled day and night, wired to the world. The cloud is just someone else's computers, in a building, on the ground.