Cloud computing — also known as grid computing (or you just call it on-demand computing) has been making headway in the press lately. Aside from publications that stem from security to data privacy, there is a whole host of complex licensing and compliance issues that need to be addressed. For example, in the world of cloud computing, there is one application that might the running on numerous servers. Or, what happens when your software vendor decides to do an audit? Do the vendors have service-level agreements with the software vendor for all the applications up and running OR would you be held accountable in some way? While I believe grid computing is certainly a model that many companies will move towards in the distance future, there are too many complex issues that currently need to be resolved for cloud computing to be acceptable for any enterprise.
If you’re looking for a good, factual Cloud Computing 101 information, I would encourage you to read Paul Reubens’ Cloud Computing: Hot Air or Killer App?