Cloud computing enhances data storage solutions by providing flexible, scalable options that can accommodate varying data needs. Traditional on-premises storage often requires upfront hardware investments and maintenance, while cloud services like AWS or Azure offer pay-as-you-go models that reduce costs. They allow for virtually unlimited storage and quick access to data from anywhere with an internet connection. Additionally, cloud solutions often come with integrated features such as automatic backups, data redundancy, and enhanced collaboration tools, making them ideal for modern business environments.