Whats the difference in regular storage and icloud storage?

Trying to download i0s 7my iphone 4 says not enough storage, go to manage storage.  I upped my icloud storage thinking, this would do the trick and increase reg storage.  Puzzled.

What you call regular storage is storage that is in the device.  iCloud storage is on the network and not in the device.
In order to download iOS 7, you need sufficent storage in the device.
Storage on the network or iCloud storage will not work for that purpose.
You might try do the upgrade to iOS 7 by connecting you iPhone to your computer then doing the upgrade from iTunes. By doing that storage on your computer will be used instead of on your iPhone. This will reduce the amount of storage needed.
Allan

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