Cloud computing may seem more hype than reality as the technology industry is busy refining the term. However, substantive business and market trends are catapulting cloud computing to the forefront. Companies and governments are using this emerging concept in the real world, and its uses are growing.

Basically, cloud computing is an approach to a shared IT infrastructure in which large pools of computer systems are linked together to provide IT services. Since it accesses "virtual" resources, cloud computing is not limited by the power and capabilities of local or remote computers. It is the next generation of enterprise data centers, which operate like the Internet, providing extreme scale and fast access to networked users. Cloud computing offers a simplified, centralized platform for use when needed, lowering costs and energy use. Unlike grid computing, which distributes IT for a specific task, cloud computing is used across an entire range of activities. The platforms getting the most media attention are externally hosted services, but others are used inside companies, especially those operating globally.

Over the next three to five years, cloud computing will evolve and gain wider use as five major consumer and business trends accelerate.

1. The Web as a Participatory Worldwide Communications Media

Today the Web is used to exchange, contribute and work with information. No longer static as in earlier years, Web content is transformed every day by users around the world. Wikipedia, Facebook and YouTube are prominent examples but are the tip of the iceberg. Social networking, streaming audio and video, and other collaborative tools are rapidly growing behind the firewalls of company intranets. Knowledge workers, especially those working in research and development, use Web applications to collaborate on work projects across the globe.

China Telecom and Sogeti, a European professional services firm, use internal cloud computing platforms to conduct online, real-time brainstorming sessions among their workers. The high-performance platform is able to collect input from 18,000 Sogeti employees, and sort and analyze it for business use.

Interactive, real-time communications, known as Web 2.0, are a major impetus for cloud computing, which meets the high-performance demands of the dynamic Web by processing massive amounts of information in a fraction of a second, using existing infrastructures.