http://coastalwebdesign.ca/how-cloud-computing-works/
http://wp.nmc.org/horizon-k12-2010/chapters/cloud-computing/

Cloud computing is as basic as Gmail or Hotmail, but can include so many other forms. I’ve been using both Gmail and Drop Box for years. Drop Box is an excellent storage system, you can put files from your home computer and work in a drop box folder and you can access them anywhere in the world via the internet. This can also be shared with other so that they too can access the shared files. Here’s a little video to explain drop box:
http://www.youtube.com/watch?v=OFb0NaeRmdg
You can start to see the benefit of cloud computing in education. Cloud computing has its place in personal use like Gmail, facebook etc, but it has great use in education. Cloud computing in education is low-cost and a free form of technology: There has been a huge growth in low-cost and free technology for social interaction, publishing, collaborating, editing, content creation, computing, etc. The fact that it can be mobile and is so convenient makes it perfect for education. It is great to use in the classroom because it stores data online, so there is no more “I lost it” from students. Plus it’s a great way for students work collaboratively on assignments wile at home. This type of technology will also become hugely advantageous for online education. I will definitely be using some form of cloud computing in my classroom.