Updating modules and themes requires ftp access to your server
To set this up on a live server, read the documentation thoroughly.
I know on Dev cloud the code is meant to be updated via SVN/GIT, but sometimes on a dev server it's really more convenient to update the modules using the Drupal built-in system. Other than that it might be worth asking another question here about it, someone may well have run into the same problem before Thank you for your interest in this question.Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).Minor, but I expect a long series of Saturday morning "I'm lost" posts from newbies. Here is a sampling of forum posts and issues where people seem to be experiencing some version of this confusion: The problem is that the "Install new module" action link on the Modules page is very inviting, and it takes you to a page where you can paste a URL or upload a file. However, the next page looks like the attached screenshot, which is pretty daunting looking to begin with - but more to the point of this issue, it completely fails if your server is not configured to allow FTP or other kinds of uploads.Basically, to solve this we somehow have to tell people on that page (or the previous one) that if they can't use this interface, they can still log on to their server and upload modules the old-fashioned way.