Cloud computing is the use of computing resources (hardware and software) that are delivered as a service over a network (typically the Internet). Cloud Computing is a general term used to describe a new class of network based computing that takes place over the Internet:
basically a step on from Utility Computing
a collection/group of integrated and networked hardware, software and Internet infrastructure (called a platform).
Using the Internet for communication and transport provides hardware, software and networking services to clients
- These platforms hide the complexity and details of the underlying infrastructure from users and applications by providing very simple graphical interface or API (Applications Programming Interface).
Example : Most of the email services are cloud based, you can accesss them from any device and at any place like, Gmail from google, ymail from yahoo, outlook from Microsoft, AOL email etc.
Now days ERP is solution comes as Cloud services and can be used by any company. Companies go with Cloud solution based on too many factors , you can read more here.
More can be read on SDN about SAP Cloud Computing