Ok, so the song isn't about cloud computing - but it's close :)
I'm glad I waited to blog on this, because I bumped into a great new book on this very topic. The Big Switch : Rewiring the World, from Edison to Google by Nicholas Carr is fascinating. Carr interweaves history with present-day computing by describing the first switch (from dynamos to electric utilities) alongside the second switch (from local hard drives to computing power in the cloud). Just as electric utilities proved to transform business and life in general, so will this trend towards large computing clusters accessible via the "cloud."
For example, check out Amazon S3. This concept promises to unleash computing power to the masses previously only accessible to large corporations. By eliminating investment in hardware and turning storage and processing into a pay-to-play model, anyone with a good idea and a little code can make their digital dreams a reality.
But unlike the electric utility, we are now trading intellectual property. What will Google, or Amazon, or Apple, or MS DO with your data? Will it be protected? Is your data safe? Should a business, for example, risk exposing customer data to the cloud? The ethics of cloud computing are a compelling reason for people to tread this new water carefully. Electricity is value-neutral. Data is not.
So the price may be right, but the true cost of maintaining off-site machinery is (currently) muddled in this electronic age. This may well be the new frontier: web 3.0, where your storage choice can be a game-changer.