(1) Running applications in an Internet server or downloading the software from the Internet each time it is used. The phrase "in the cloud" may refer to a company's own network, but the term "cloud computing" almost always refers to the Internet and the use of Web browser-based or rich client applications. For example, Google Apps and Zoho provide common business applications online that are accessed from a Web browser. The software comes from the Web servers, and the data may be stored on the servers as well (see Google Apps).

(2) Performing enormous numbers of scientific calculations in hundreds or thousands of idle machines within an enterprise or in the Internet. See grid computing. See also utility computing.