Cloud storage is well-suited for files that benefit from accessibility, scalable capacity, or off-site backup. Ideal candidates include frequently accessed personal files (documents, spreadsheets, presentations), large media collections (photos, videos, music libraries), and archived data that requires retention but infrequent access. These files are advantageous to store in the cloud because they aren't constantly updated in real-time by multiple users simultaneously, avoiding sync conflicts. Conversely, operating system files or critical applications requiring millisecond access are typically not ideal for primary cloud storage. Sensitive data heavily regulated by privacy laws also requires careful consideration before storing in the cloud.

Common examples include individuals using services like iCloud or Google Drive for personal document and photo libraries accessible across all their devices. Businesses often leverage platforms such as Dropbox Business or Microsoft OneDrive for Business to store and share large project files, marketing collateral, or customer relationship management (CRM) backup archives among distributed teams or partners. Media production companies frequently rely on high-capacity cloud solutions to manage enormous video project files and facilitate remote collaboration without physical drive transfers.

The primary advantages are ubiquitous access, reduced local storage burdens, robust disaster recovery, and often built-in version history. Limitations include potential latency for editing large files directly online, ongoing subscription costs, and internet dependency. Key ethical considerations involve data privacy, security reliance on the provider, and ensuring compliance with regulations like GDPR or HIPAA depending on the data's nature. Future enhancements focus on better integration with local applications for seamless editing and advanced zero-knowledge encryption models to bolster user control over sensitive data.