Cloud software is any digital product that delivers services over the internet. The services include servers, storage, networking, databases, analytics, and intelligence. Thus, cloud software users access these resources from a cloud provider rather than owning and maintaining computer infrastructure or data centers.
Web software is programs stored on a remote server and delivered through a browser over the internet. Similar to cloud software, they use the processing power of a server located in a distant data server. However, while a web app needs a constant internet connection to work, a cloud application processes tasks on a local device and mainly uses the internet for data exchange.
The principle difference between a cloud solution and a web app can be illustrated as follows. Gmail is a web application that requires a browser and must use the internet to receive and send emails. Office 365 performs tasks locally without any connection. Its cloud aspect comes to play when you want to save work to the server.