I think cloud computing is the present and the future. I was an early adopter of cloud based computer in my other companies and there has been tremendous upsides, with little to no downsides. Our business software is now available on any device from anywhere (huge advantage) and we don't have to deal with the hassle of our previous configuration: 12 servers, tape backup, tape backup licensing, backup tapes, offsite backup, very expensive server grade virus protection, electricity draw of all those servers, security, a special temperature controlled room for those servers, etc., etc., etc.
Web based software has been a real time saver and money saver for us. In the old days, we had to buy very expensive software for our industry and then buy the supporting software on top of it (server OS, database, etc.) and then buy software licenses for each PC. Plus, after all that, you still had to pay a very expensive annual maintenance fee. In this example, we would spend at least $100,000 in the initial software and then another $15,000 to $20,000 in annual maintenance fees. No more. Now we pay $79/user per month. That's it. Nothing more. Nada. This includes support and training too. And yes, WE OWN THE DATA. The legal documents around this are very specific. We regularly backup our data from their servers to our one server. But they backup our software to multiple other locations as well. I don't have to worry about hard drive failures on the servers, the corporate class virus protection for those servers, licensing of the OS for those servers, etc., etc.
Let's put it this way, I was spending MORE in annual licensing fees for the corporate class virus protection and the tape backup software alone than I am now in the monthly user fees. The savings in time and money are tremendous.
All of our email and other corporate data is also hosted "in the cloud". It's such a time and money saver and we've been doing it for years. I remember telling people years ago that I was moving all our data, hardware and software operations to the cloud and they would look at me with a dazed look. Now they get it.
It just makes sense and if Microsoft is further pushing technologies to support the cloud, then good on them. Putting Office in the cloud was a big step in the right direction.