The cloud is not a physical thing. The cloud provides your business with a way to safely store and access your information via the internet without the need to purchase on premise servers. Some examples of applications that allow you to store your data and work in the cloud are Office 365, Xero, LinkedIn and Dropbox.
If you use multiple web based applications it is likely your data will be stored at a variety of server farms around the world. Server farms are large warehouses filled with servers running 24/7/365 days of the year. It is also not uncommon to have your data backed up at multiple server locations to reduce the risk of a natural event such as an earthquake destroying your data. OneCall work with server providers in Australia and USA.
Whether or not you need to update your hardware will come down to understanding how you use the hardware and the business case for doing so. In some instances upgrading hardware on your current computers and equipment could extend the asset life by two to three years, however in other situations it will be more cost effective to purchase or rent the latest office technology equipment.