I thoroughly enjoyed this article. I have seen this phenomena ,growing in it's insidiousness, over the last three years. I stick to my assertion: when investors stop investing in mediocrity, truly innovative companies will flourish. I have self-funded {s}hareCLOUD which will turn the small business cloud and tech services industry on its head. I will probably have a difficult time if and when I seek external funding. We are at the precipice of another dotcom bust (I survived the first one). Investors are investing in fads instead of solid, long-lasting enterprises. There is a lot of junkfood on the web. We all know you can't survive on junkfood.
Emma I had high hopes for this article and applaud you for its simplicity. I , however, can see why the cloud has become this mythical beast akin to the chupa cabra. When I did work with the Federal Reserve, many moons ago, they never called their dumb terminals "cloud computers". What I think needs to be emphasized is the fact that the actual 'computing' is being done in the background. Google Docs would be more of a cloud application or interface. The actual computing is being done by Google's server, network and storage infrastructure. I think that if we are able to classify these properly as cloud apps or interfaces, it would cut down on much of the cloud mystique/confusion.
I did both thoroughly enjoy and appreciate this article. Thanks for helping to demystify the cloud. I enjoy speaking cloud @dkwtechnik.