Hi.
I think the other contributors explain iCloud very well but I might just add a few comments.
I think of iCloud more as a means of attaining peace of mind about my data and photos but mostly my photos.
iCloud Drive - I would use this for documents only.
iCloud Photos - I would use this for Photos and camera movies only.
If you pay for 2 TB of iCloud storage this is available to you across the whole iCloud service offering which would be: email, iCloud Drive, iCloud Photos.
iCloud Drive
iCloud Drive is just like Google Drive and OneDrive in that the master data is stored in the cloud.
So when you add a file to your iCloud Drive your file is stored locally on your Mac but it is then immediately copied to the master data set in the cloud as part of your storage plan.
If you are logged into your iCloud account on your phone, or on another computer that data can also be copied and available there too.
The cloud master data is a "live" copy of your data so if you remove a file on your local copy it will also be removed in the cloud. (The cloud data is also backed up by Apple with plenty of redundancy).
This is good so long as you do not consider iCloud storage as a conventional Backup that allows you to go back in time like Time Machine.
iCloud Desktop and Documents was introduced as a default in High Sierra which can catch some people out and be rather confusing in my opinion. Suddenly seeing your desktop and My Documents in a different place is strange, but it does make sense. If this is turned on then the side bar in finder will have an iCloud heading showing iCloud Drive, Documents, Desktop.
The default setting is that your user account "My Documents" Folder and your Computer Desktop become incorporated into iCloud. They all work in the same way.
iCloud Photos
For me this is provides the best data assurance.
Prior to using iCloud Photos I was managing my whole photo collection locally only using a mixture of time Machine and external hard disks as a means of backup. I have scanned a large amount of old photos and added these to my photo Library which is currently standing at 40K images.
It is fine to manage your photos locally in this way but there are some reasons why I do not believe it the best way.
- Fire or disaster. If you keep your photos backup up in Time Machine and external drives you are not protected in the event of your home burning down or natural disaster. The traditional way around this is to keep multiple copies of your data at another place, for example with a friend or relative. This approach is fine if you are business but in a domestic setting, human nature dictates that we often forget to keep the offsite backup updated.
- Hard disk failure. Mechanical drives will fail eventually. I've had a WD disk Book sitting my desk for 8 years now. Still going strong but how much longer will it last I wonder. It is down to luck as to how much you can retrieve when it fails. For this reason it is good to keep more than one copy just in case. Prior to using iCloud Photos I once dropped a hard drive whilst disconnecting a cable from 6 inches onto carpet - lost everything on it.
- Theft - If your computer is stolen then having a good backup will save you. But will your backup be up to date?
- Cost - It costs money to buy 2 external drives and a separate drive for Time Machine. Additional cost when you need to replace a failed drive.
- Time - It takes time to manage your backup regime.
In the old days, boxes of photos and albums and slides were kept in the loft or in drawers with no protection against fire etc. iCloud photos changed that so when it came along I jumped at it because it brings protection from the 5 points above.
At the risk of sounding sentimental I have all my childhood photos and my kids' childhood photos stored in iCloud Photos.
I see this as something my kids/family will inherit one day and I believe this is the best way to ensure they can.
Optimise Storage?
This feature is very very good and I do use it.
Advantages
- keeps the local device storage use dramatically low. For example you can see all your photos on your iPhone.
- You can view your whole photo collection in low res and download hi res version when required.
- You can optimise storage on your iPhone but not use it on your iMac for example. (see below)
Disadvantage.
- having local low resolution photos means that if you are using time Machine to do an extra backup, it will backup those low resolution photos and not the hi resolution ones. In this scenario it might be best to turn off Optimise Storage on the computer that is running Time Machine.
We can also have the discussion about the security of keeping your personal photos in a cloud service but I think that it is another topic.
Anyway I hope that helps you a bit...
I have used my Mac to