How are cloud databases characterized?

Cloud databases are characterized by their hosting and management in a cloud computing environment. This means that they leverage the internet to provide access to databases that are not confined to physical local servers but instead reside on remote servers managed by cloud service providers. This setup allows for flexible resource management, scalability, and accessibility from virtually anywhere with an internet connection.

In a cloud environment, resources such as storage and processing power are dynamically allocated based on demand, which enhances efficiency and cost-effectiveness. Users benefit from automatic updates, maintenance, and high availability without the need for extensive physical infrastructure on-premises.

The other options highlight characteristics typical of traditional database systems, which rely heavily on local servers and on-premises resources, limiting accessibility and flexibility.