Cloud computing is the new buzzword on the web, promising to revolutionize the way people access data through their personal computers, smartphones, tablets and other devices. The "cloud" refers to remote servers where data - music, documents, photos, emails, etc. - can be stored. Freed from individual hard drives, this data can be accessed from anywhere. It's the same idea used to power web-based email like Gmail or Yahoo mail, and existing online "collaboration" tools like Google Docs and Microsoft Office Live.

So what would the future look like if all businesses and individual users started storing information in the cloud instead of on their own devices? Personal computing devices could be a lot smaller and lighter, without the large hard drives required to store data and software. No more installing or updating software, either. Your files would be on-demand, accessible from your home laptop, your work computer, or anywhere you take your mobile device. This would make it easier for employees to telecommute and maybe even change the rules for commerce.

Traditionally, data has been considered personal property. Users are usually expected to pay for it, download it and store it exclusively for their own use. Of course, data-sharing has been eroding this idea - and the profits of the music, TV and film industries - since the internet was invented. Cloud computing would finally embrace the fact that most consumers of online data, be it a song, TV show or movie, don't really care if they own the data outright. They just want on-demand access to it, and the ability to move it from device to device - say, a PC to an iPod. Services like Pandora Radio and Netflix's Watch Instantly feature already do this for devices with an internet connection, offering unlimited access in exchange for a flat subscription fee or ad placement. The next step will be to add the transportability of an actual mp3 or video file.

Cloud computing with more sensitive data like documents and records has been slower to catch on. There is a perceived security risk that the industry will need to overcome - businesses like to see the physical space in which their data is stored. But smaller companies could benefit by remotely storing their data. Not only would they save infrastructure and IT support costs, but they would also be securing and backing up their data with a trusted third party that has the resources to deter hackers.

With ever-expanding access to the internet and improved cloud-computing software and mobile devices, more and more computing is likely to take place in the cloud. The businesses that stay ahead of the curve, both by offering cloud-ready services and making their internal information easily accessible to qualified parties, will be the businesses of the future.