To The Cloud

What is Cloud computing? According to Wiki it is:

"Cloud computing refers to the logical computational resources (data, software) accessible via a computer network (through WAN or Internet etc.), rather than from a local computer. Data are stored on Server Farms generally located in the country of the service provider. The on-line service is offered from a cloud provider. These technologies are regarded by some analysts as a technological evolution,[1] or are seen as a marketing trap by others like Richard Stallman.[2][3]"

This YouTube video shows how it works:



We use the Cloud anytime we use Gmail, Facebook, Yahoo, or even WordPress.
While it is true that software can be used from the Cloud, a network server is still needed to house the information, so a cost is still realized. The question is which cost more: having software for each local computer or using the Cloud?

I can see the value in both so maybe a compromise is needed and there is a use for both. Each school or business will have to figure the costs and decide for themselves.