InfluxDB Cloud is a time series database as a service that allows users to monitor their data and systems by setting up alerts. To set up alerts, users need to write a Flux query that runs on a schedule using the aggregateWindow function to examine changes over time intervals. The query is then converted into a task that can be saved and updated in the InfluxDB Cloud interface. A dashboard can be created to visualize the task output, and a check for the alert can be set up using threshold checks. Finally, a notification endpoint is set up, and notification rules are created to send alerts about critical data. The process requires understanding of Flux queries, tasks, dashboards, checks, and notification endpoints.