What is cloud computing?

I hear the buzz - not sure what it can do for me. Any ideas or examples?What is cloud computing?
Cloud computing is the next generation of computing. It means-



Running a virtual computer on your local hard drive. Sort of like a Java window currently runs and makes java code execute. Java has the advantage of "being in a box" meaning that it's almost unknown to other programs and this leads to stability. Cloud computing will mean that the program will reside on the server and through the internet, a virtual computer will be made on your local hard drive. This will then run the program "in a box" on your computer without installing the actual program. This leads to fast load times and you'll just pay a fee to use the program.What is cloud computing?
The concept is that all your stuff lives on the WEBWhat is cloud computing?
Its a way of storing data using internet services, thereby minimising your own hardware costs and gaining the resilience of professional data centres to protect your data.
Cloud computing, roughly, is when instead of your computer running processes it just connects to a server farm (or cloud) and requests an image of the process to display for you. All processing is done online by these servers, you simply do the interaction.



Window's Terminal Services are a rough example how this works on a corporate level.