Instead of using storage drives like USB, iPad, iPhone, iPod touch, Mac, or PC, Apple users can now store their personal files and documents on the internet using “iCloud.”
 “iCloud is so much more than a hard drive in the sky, states in the Apple website.  It gives you instant access to your music, apps, latest photos, and  more. And it keeps your email, contacts, and calendars up to date across  all your devices.”
According  to the website, a user who signs up for iCloud automatically gets a 5GB  free storage where purchased music, applications, books, mails,  documents, account information, settings and other documents can be  saved in.
Furthermore, the company says Apple apps are ready for the new service. “When you update your iPhone, iPad, or iPod touch to iOS 5,  your favorite Apple apps become seamlessly integrated with iCloud. Just  like that. So all your content and information is available and up to  date, no matter which device you’re using.”
Using  the service, users who have been downloading files on iTunes can also  access to their purchase history from the online store on Mac, PC, iPhone, iPad, or iPod touch.
“iCloud  automatically downloads any new music purchase to all your devices over  Wi-Fi — or over 3G if you choose. Which means you can buy a song from  iTunes on your iPad at home, and find it waiting for you on your iPhone  during your morning commute. All without having to sync.”
Moreover,  iTunesMatch, which is $24.99 a year, allows users to store entire  download from the online store and other sources using the new Apple  service. All users have to do is to upload downloads that iTunes cannot  match.
According to pcworld.com  , iCloud has essential features that include reasonable fee, video  streaming, iTubes and CD’s, cross platform and worldwide access. 
 Los Angeles Times reports “iCloud” is $25 per year of service. 
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Source: 
http://theappwhisperer.com/2011/06/06/what-is-icloud 
http://www.apple.com/icloud/what-is.html
http://www.pcworld.com/article/229348/icloud_5_essential_features.html
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