How is a layer of abstraction added on top of public cloud provisioned VMs?

This is probably poorly worded but I dont know how exactly to describe it. Basically, I wanted to get some insight on how some organization/company which is offering a cloud platform - such as an online IDE like VisualStudioCode, abstracts away the view of theVM like an EC2 machine. Basically, I've used services where one can "load workspace" which loads up the online IDE and work within the environment without having to think or deal with anything to do with the EC2 machine(supposing the service uses AWS). Is there a term for this, or some resource where I can read about how this works?

submitted by /u/ThiccShadyy
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