Beyond the word.
WHAT IT MEANS
Using computing resources owned and operated by someone else, over a network, paying for what you use.
WHAT IT IS NOT
A single technology Somewhere mysterious Automatically cheaper Automatically better
WHAT IT REPLACED
Buying hardware, installing it somewhere, maintaining it, and replacing it every few years.
WHAT YOU GET INSTEAD
Capacity available immediately Someone else maintaining the hardware Payment tied to usage rather than purchase
WHAT YOU GIVE UP
Direct control Predictable fixed costs Independence from a provider
WHAT MOST SMALL BUSINESSES ALREADY USE
Email hosted elsewhere File storage Accounting software A hosted website
That is cloud computing.
WHY THE TERM CONFUSES PEOPLE
It covers everything from a file storage account to an entire data centre.
WHAT MATTERS
Which kind you are considering, and whether it suits the problem.