Buzzwords can be confusing. Take Cloud Computing. Dave Hitz of NetApp recently posted this fairly lucid description:

If I am a business person and I have a business problem that can be solved with IT, there are two ways to go about it. The traditional way is to chose an application, find some hardware to run it on, find some storage for it, find space and power in my data center, find people to operate it, and so on. The cloud computing way is to find a service on the internet instead of an application I run myself, and to let someone else handle all of those other steps. I don’t own a data center, buy any equipment, or operate anything. All my capital expenses are converted to a service fee, or – more common in clouds for consumers – the service is free because I have to look at advertisements.

You can read the rest of his blog entry here.