Cloud computing is the consumption and delivery of IT services from the Internet instead of onsite hardware and software infrastructure and is a dynamically scalable virtualized resource service available via the Internet.
Cloud computing promises to bring valuable resources that were out of reach of small organizations allot closer in the next few years. Companies with innovative products that normally required large capital expenditures for IT infrastructure and the time to build it will instead be available for other aspects of the deliverables of their projects.
Companies providing the cloud based resources are sure to find the next decade profitable and rewarding as this paradigm shift progresses.
The downside may be in the higher operating costs of using the cloud model, as well as database efficiencies, security and other considerations of the organizations needs.