The "cloud" is a network of computers that local computers can access. Before cloud computing, if you wanted to run software on your computer, you had to install it. Cloud computing promises you'll never have to install anything again.
Instead, you'll run an interface software that's as simple to use as a web browser, and you'll be instantly connected to everything you need from any device -- from your music, to apps, to passwords, address books and banking information.
Every place you connect to the Internet will be like your personal computer.
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