Running software projects from the cloud means using remote, internet-accessible servers (hosted by providers like AWS, Azure, or Google Cloud) instead of physical on-premises computers for all development stages. This encompasses storing code, building and testing applications, deploying releases, managing project tasks, and hosting the final software. It fundamentally shifts project infrastructure from local hardware managed internally to scalable, on-demand resources managed by the cloud provider.

Practically, a team might use GitHub Codespaces for browser-based coding environments on Azure infrastructure, while their automated builds and tests run on Google Cloud Build. An enterprise could leverage AWS CodePipeline for continuous integration and deployment pipelines, managing work items in Jira Cloud hosted on Atlassian's servers, and deploying the final application using Azure App Service. This model is prevalent across startups, large enterprises, and distributed teams in various industries.

Major advantages include reduced hardware costs, instant global scalability for development environments, simplified collaboration for remote teams, and built-in disaster recovery. However, ongoing subscription costs, potential data privacy concerns, internet dependency, and the risk of vendor lock-in are key limitations. While security is a shared responsibility (customer handles app/code security; provider handles infrastructure security), ethical implications around data residency and provider governance remain important considerations. This model is increasingly standard, driving innovation in distributed, agile development.