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What is cloud computing?

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What is Cloud computing?

I read the Wikipedia article on it and am still confused. I know there is a great deal of hype these days surrounding 'Cloud Computing', but what is it exactly?

From a programmer's prespective:

  1. If I am creating a web service that process all my business rules and data storage on a web server, is that cloud computing?
  2. Are all websites examples of cloud computing?
  3. Just becuase I use WCF or Web Services does that automatically make it a cloud application?

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