Cloud computing—the metered provisioning of business applications over the
internet or a private network—is not a new phenomenon. In the new normal
economy, however, cloud computing takes on a far more critical role: Faced with
tightening budgets and growing competition from new global players, companies
will need access to more powerful software tools than they can afford under
traditional annual software licenses. In the cloud, companies can pay for services
as needed—whether it is for several months or only a few hours. “I can be a
small business that can suddenly serve 20 or 30 million customers all around
the world,” says Ashish Agrawal, group product manager in the digital enterprise
solutions group at Adobe. The flexibility of the cloud enables companies to enter
new markets quickly while slashing overhead costs.