Cloud
The cloud model where the provider runs the machines and operating system, and you only bring your own program and its data.
Formal
A cloud service model in which the customer places its own programs on a platform the provider manages, without control over the underlying servers, operating system or storage, but with control over the programs and their settings.
In plain English
Like renting a fully equipped restaurant kitchen - ovens, gas and cleaning are handled, and you just bring your recipes and ingredients.
In practice
A developer at a municipality puts the booking site for its sports halls on a managed platform; the provider keeps the servers patched, but the developer still decides who can log in and what the site shows the public.
Why it matters
It moves the patching of servers to the provider, but flaws in your own program and its settings remain yours to fix.