Eric Knorr and Galen Gruman provide a concise overview of "cloud computing" in "What Cloud Computing Really Means."
Here's an excerpt:
Cloud computing comes into focus only when you think about what IT always needs: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities.