No longer just a vague concept, the term “cloud computing” is being thrown around with increasing frequency. In a nutshell, cloud competing is becoming popular because it offers economic solutions to many standard problems associated with both wired and fixed line comminations platforms.

in the context of service hosting is one step up from 'standard' shared hosting. Rather than have services based on a single physical machine (with constraints on RAM, processing power, disc size and so on), services run on several machines. These machines don't even have to be in the same location. As long as the interconnections between disparate sites are fast enough (gigabit ethernet is usually considered to be the minimum speed) clouds can be spread over any area. As computing power can be harnessed from several sources, there is a great deal of flexibility available both to the service provider and the end user.