How to add things to your iCloud storage?

So I have the iPhone 4, I try to save my battery by not having a lot of apps and not take up so much memory. But, I take a lot of pictures, I have a lot of music, and I have a lot of contacts. It takes up a lot of space. So how do I add apps to iCloud? If I do put apps on iCloud, will I still be able to use them regularly? I was going to put the stuff that takes up the most storage, photos and music. So would I be able to use it all the time? And would it take up less storage on my actual phone?

ICloud is a backup/sharing service currently. You can't run applications from the cloud, which seems to be what you're implying?

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