Cloud Computing: what is it?

Hi I'm new to the whole Cloud thing but I think I have the basic idea of it.

You Pay a Provider a fee and then they provide you with applications that they have on their servers. So your computer will have hardly anthing on the Hard Drive at all.

Is that right?Cloud Computing: what is it?
it stores all of the data and in your case also handles the running of the actually program so you could say run a super resource hungry program like photoshop on a really weak netbook as long as you have a good internet connection.Cloud Computing: what is it?
Basically yes that's probably the easiest way of putting it.