The Cloud Computing scheme is being pushed by Google, large SW companies, and large server/storage equipment manufacturers. Keep in mind that these companies push several schemes at once to generate business. They know that not every sales pitch results in a P.O.
Cloud Computing allows a firm to offload the IT function onto a cloud service provider which is like your cell ph company or satellite TV company. The cloud provider has the servers and storage and guarantees security.
It remains to be seen if Cloud Computing will be an lower cost alternative that having your own IT department. Storage costs have dropped dramatically to a fraction with the advent of ZFS which has made expensive hardware RAID servers obsolete.
Competitive pressures from the CPU and NAND storage industry may disrupt the Cloud Computing scheme.
100-500 CORE Cpus promise to reduce the footprint of a typical server from a 19" wide by 4" high to 60" high rack, to a the size of small side desk drawer.
With these 100-500 CORE Cpus, application SW vendors will no longer ship their software for Win 7, Mac OS, Linux, etc. and will instead use their in-house OS which is normally Java/Unix/Linux. Every application will use it's own OS and dedicated CPU. Win 7, Mac Os, etc. will only be used for legacy apps and as a the GUI / display OS.
So we'll see what pans out in the next few years.