An Availability Zone in cloud computing is a distinct location within a cloud provider's region that is insulated from failures in other zones. Each Availability Zone provides redundant, low-latency network connectivity to other zones in the same region, making them an important part of a cloud provider's disaster recovery strategy.

• Availability Zones provide a way to protect applications and data from data center failures, improving reliability and availability.
• They also provide low-latency network connectivity to other zones in the same region, improving performance.

Availability Zones work by providing a separate location for data and applications within a cloud provider's region. Each zone is designed to be isolated from failures in other zones, and they're connected through low-latency links.

• Cloud providers typically provide several Availability Zones in each of their regions, allowing customers to distribute their applications and data across these zones for higher availability.
• If one zone experiences a failure, applications and data can be quickly moved to another zone, minimizing downtime.

A cloud service provider, CloudServe, offers several Availability Zones in each of their regions. A customer, DataCorp, distributes their applications and data across these zones. When one zone experiences a failure, DataCorp's applications and data are quickly moved to another zone, minimizing downtime and data loss.