What is cloud computing?

A recent article stated "Cloud computing companies take note: Americans don’t understand your product".

"Zach Walton reported some embarrassing stats from a recent survey of 1,000 Americans: 51% of respondents believe that stormy weather can interfere with cloud computing and 29% think that the cloud is an actual cloud. (Only 16% actually knew what the cloud was.) The survey also found that 54% of respondents claimed to never use the cloud in their everyday lives, when in fact, 95% used something powered by the cloud everyday".

Check out the article in its comic entirety - Where Americans Think Cloud Computing Comes From (WebProNews)
http://www.webpronews.com/americans-think-cloud-computing-comes-from-actual-clouds-2012-08

That made me curious and wanted to take a crack at asking you some simple questions to see how we can define cloud computing.

Thanks for participating