A CNAME record is a type of DNS record that maps a hostname to another hostname. This is useful when you want to use a different hostname for a server than its actual IP address.
In this case, the technician is setting up DNS records on local servers for the company's cloud DNS to enable access by hostname. This means that the users will be able to access the servers by their hostnames, instead of their IP addresses.
To do this, the technician needs to create a CNAME record for each server. The CNAME record will point the hostname to the server's IP address.