In the simplest of terms, it is IT-as-a-Service. Instead of building your own IT infrastructure to host databases or software, a third party hosts them in its large server farms. Your company has access to its data and software over the internet (which in most IT diagrams is shown as a cloud).

Cloud has five key benefits:

1. Cheap: Your IT provider will host services for multiple companies; sharing complex infrastructure is cost-efficient and you pay only for what you actually use.

2. Quick: The most basic cloud services work out of the box; for more complex software and database solutions, cloud computing allows you to skip the hardware procurement and capital expenditure phase - it's perfect for start-ups.

3. Up-to-date: Most providers constantly update their software offering, adding new features as they become available.

4. Scaleable: If your business is growing fast or has seasonal spikes, you can go large quickly because cloud systems are built to cope with sharp increases in workload.

5. Mobile: Cloud services are designed to be used from a distance, so if you have a mobile workforce, your staff will have access to most of your systems on the go.

In other words: information technology becomes a utility, consumed like electricity, water, or even outsourced HR or payroll services. This year is the year to get your cloud strategy together.

Bear in mind, cloud computing is not new. Most of us are using the cloud already, through services like Hotmail, Flickr, Blogger and Facebook. It's business that has been slow in the take-up.