Fundamentally, cloud computing converge infrastructure and shared services. This type of data center environment allows enterprises to get their applications up and running faster, with easier manageability and less maintenance, and enables IT to more rapidly adjust IT resources (such as servers, storage, and networking) to meet fluctuating and unpredictable business demand.
Most cloud computing infrastructures consist of services delivered through shared data-centers and appearing as a single point of access for consumers' computing needs. Commercial offerings may be required to meet service-level agreements (SLAs), but specific terms are less often negotiated by smaller companies.
Refer to my earlier discussions on embedded leases , the cloud now sits as a prime target of a financial lease. With more and more corporates outsourcing this activity to clouds and using dedicated servers, it attracts the "RIGHT TO USE" phenomena.
And if contracts aren't carefully worded, these assets could be staring in your books as assets with a corresponding liability, thereby making the balance sheet unattractive to investors.
Well until the accountants do figure it out, its best to leave this lease up in the clouds
