PSD is short for Photoshop document. A Photoshop document saved to a local hard drive has the extension .psd. Photoshop files saved to the cloudA cloud is a data storage server, accessed remotely from a computer workstation or mobile device. Cl... More become a Photoshop Cloud document with the extension .psdc. PSDCPSDC is short for Photoshop Cloud Document, which are Photoshop files saved to the cloud. PSDC files... More is short for Photoshop cloud document.