"The IP Address is the internet's version of your phone number. All applications that are running on a server inside of a network will have an IP address. When other applications have to talk to your application, they look each other up on DNS and find each others IP addresses. Cloud providers offer what is called a Virtual Private Cloud (VPC) that is a virtual network that you can operate. When you create a new server these VPC’s automatically assign IP addresses to them and give you the flexibility to assign rules for what types of traffic can reach your server. This is one of the benefits of moving to the cloud, as basic network operations are handled for you. You are the customer can generate nearly unlimited IP addresses for your network and continue to expand, as your business grows."
in other words
Like a phone number for your device, only for the internet.