Hmm, I've never heard that definition. Maybe "cloud hosting". But in general, "cloud" software just means hosted somewhere else and usually accessed via a browser or mobile app rather than with a local install.

You just described every website ever.

I build "cloud" contact center software. To most people it just means no servers at the customer site. To discerning customers, cloud means horiz-scaling, while hosted just means we manage the servers for you.