“Cloud is a parallel and distributed computing system consisting of a collection of interconnected and virtualized computers that are dynamically provisioned and presented as one or more unified computing resources based on service-level agreements (SLA) established through negotiation between the service provider and consumers.” - Buyya
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Cloud computing is an overall philosophy and design concept and it is much more complicated and yet much simpler then people give credit for.
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The basic / underline concept is you are trying to separate the applications from the Operating systems, from the hardware they run everything.
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Ex : Server hardware -> Server OS ( Say Windows NT 4) installed on it. -> Then you installed Microsoft exchange server installed to provide service to your employees. This is a bundle. The problem here is the exchange server is dependent on everything below it. so if any problem occurs in any of the components may OS or hardware. then Email service provided by exchange server will fail. MS exchange Serve | MS Windows NT 4.0 | Server Hardware.
The idea of Cloud Computing is to disconnect application, OS and the hardware from themselves. Virtual computing will help if it the server fails then the instance running on will be moved to different server. like 3 server ( CPU + Hardware + RAM ) on which virtualization s/w is installed. The OS and application will be migrated to new piece of server. That is what it means separating application from OS and H/w.
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