Some of the companies researching cloud computing are big names in the computer industry. Microsoft, IBM and Google are investing millions of dollars into research. Some people think Apple might investigate the possibility of producing interface hardware for cloud computing systems.

The applications of cloud computing are practically limitless. With the right middleware, a cloud computing system could execute all the programs a normal computer could run. Potentially, everything from generic word processing software to customized computer programs designed for a specific company could work on a cloud computing system.

Why would anyone want to rely on another computer system to run programs and store data? Here are just a few reasons:

• Clients would be able to access their applications and data from anywhere at any time. They could access the cloud computing system using any computer linked to the Internet. Data wouldn't be confined to a hard drive on one user's computer or even a corporation's internal network.
• It could bring hardware costs down. Cloud computing systems would reduce the need for advanced hardware on the client side. You wouldn't need to buy the fastest computer with the most memory, because the cloud system would take care of those needs for you. Instead, you could buy an inexpensive computer terminal. The terminal could include a monitor, input devices like a keyboard and mouse and just enough processing power to run the middleware necessary to connect to the cloud system. You wouldn't need a large hard drive because you'd store all your information on a remote computer.
• Corporations that rely on computers have to make sure they have the right software in place to achieve goals. Cloud computing systems give these organizations company-wide access to computer applications. The companies don't have to buy a set of software or software licenses for every employee. Instead, the company could pay a metered fee to a cloud computing company.
• Servers and digital storage devices take up space. Some companies rent physical space to store servers and databases because they don't have it available on site. Cloud computing gives these companies the option of storing data on someone else's hardware, removing the need for physical space on the front end.
• Corporations might save money on IT support. Streamlined hardware would, in theory, have fewer problems than a network of heterogeneous machines and operating systems.
• If the cloud computing system's back end is a grid computing system, then the client could take advantage of the entire network's processing power. Often, scientists and researchers work with calculations so complex that it would take years for individual computers to complete them. On a grid computing system, the client could send the calculation to the cloud for processing. The cloud system would tap into the processing power of all available computers on the back end, significantly speeding up the calculation.

While the benefits of cloud computing seem convincing, are there any potential problems? Find out in the next section.