The other day, I was asked by an administrator to explain in simple terms what cloud computing was. I thought about it for a second, and then said this: Your files are on your desktop computer right now, right? Well, imagine if they were out there (I pointed to the sky) and you could access them wherever you had Internet access. I further explained that using their servers instead of ours would be much more practical and safe, given that a company like Google has their own huge group of tech people and thousands of servers with secure encryption. The cloud would be like a big bubble protecting all our files. Web 2.0 is a big part of cloud computing as it involves online programs which we allow us to collaborate with others. I personally like cloud computing. I use GoogleDocs and I am trying to interest my school district in Google Apps for Education. (After all, it's good enough for Brown University...) I know that people feel very concerned about personal files being out on the web, and I never store anything that sensitive in the cloud.
Here's a short video which explains cloud computing: