Cloud Computing

“Cloud computing is Internet-based ("cloud") development and use of computer technology ("computing"). The cloud is a metaphor for the Internet, based on how it is depicted in computer network diagrams, and is an abstraction for the complex infrastructure it conceals.[1] It is a style of computing in which IT-related capabilities are provided “as a service”,[2] allowing users to access technology-enabled services from the Internet ("in the cloud")[3]without knowledge of, expertise with, or control over the technology infrastructure that supports them.[4] According to a 2008 paper published by IEEE Internet Computing "Cloud Computing is a paradigm in which information is permanently stored in servers on the Internet and cached temporarily on clients that include desktops, entertainment centers, tablet computers, notebooks, wall computers, handhelds, sensors, monitors, etc."[5]
Cloud computing is a general concept that incorporates software as a service (SaaS), Web 2.0 and other recent, well-known technology trends, in which the common theme is reliance on the Internet for satisfying the computing needs of the users. For example, Google Apps provides common business applications online that are accessed from a web browser, while the software and data are stored on the servers.”

From: http://en.wikipedia.org/wiki/Cloud_computing



Cloud computing is great for software as a service(SaaS). The following from InfoWorld shows as much.

“This type of cloud computing delivers a single application through the browser to thousands of customers using a multitenant architecture. On the customer side, it means no upfront investment in servers or software licensing; on the provider side, with just one app to maintain, costs are low compared to conventional hosting. Salesforce.com is by far the best-known example among enterprise applications, but SaaS is also common for HR apps and has even worked its way up the food chain to ERP, with players such as Workday. And who could have predicted the sudden rise of SaaS "desktop" applications, such as Google Apps and Zoho Office?”