For those who don't know yet what cloud computing is, let me explain it first. Cloud computing is actualy just running your own server virtualized. This means you have a virtual server on a computer somewhere else. It doesn't realy exist, it's just logical and not physical. The advantage is, you don't have to invest in new hardware, although you have to pay rent for the resources you use from your provider. It comes in very handy if you don't want to make a big investment right away or if you don't have the room for your own server. This way it's all a lot simpler. Just rent a virtual server and they take care for everything. Mostly you can check the hardware status and up- or downgrade any moment and this in just seconds. You don't need to go buy the hardware first, it can just be added right away. Others think it comes in handy for when there is something wrong with the server, when this happens, your server just gets moved to another computer and is imediately back online.
sources: http://en.wikipedia.org/wiki/Cloud_computing
http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031
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