Did not know that, thank you for explaining it (the original meaning) to me.
Its just that somehow the "cloud" has been hyperbole(d) into oblivion like its going to save mankind. You would probably not be amazed by this but im sure that 80% of people think its some metaphysical thing or data thats kept in flux!!!
Definitely, as with a lot of technical terms, it has been picked up by the media and now used by people who have no idea what they're talking about.
"Clouds" (e.g., the network diagram type) have been around for decades.
As a regular end user, your internet access itself is a "cloud" service. I.e., you don't necessarily know (or care - even if you're a networking guy, the specifics of your ISP are unknown unless you work for them) how any of it is implemented by your ISP beyond the wall socket at your house. It is enough for you to know that you connect your modem, configure with your customer details and from there onwards, "magic" happens and internet comes out. The details beyond that are irrelevant to you, so long as it works and performs as expected.
E.g., if you were to do a network diagram for your house, you'd have your WIFI setup, your switch (if any) your PCs, your router, and on the other side of the router a big cloud with the name of your ISP on it, to represent some service you use but don't know the details of. Another way of thinking of a cloud is that anything in it is "not my problem".
The big revolution has come in the past 5-10 years or so due to ISPs and other big network providers having HEAPS of unused disk and CPU capacity on modern machines, and rather than having it sitting there idle, they have become ASPs (
application service providers) instead, by enabling customers (for a fee!) to use their gear for storage or running applications. Because these guys already HAVE all the hardware because they need to use a small portion of it, they can sell use of it to other people for far cheaper than the user could buy the hardware for themselves (it's already paying for itself by running the ISP network). Web page serving was the first cloud application most people would have used.
That's how it started anyway. With virtualization, it has become much easier to virtually slice up hardware resources and dedicate commited resources to multiple customers on the same physical machine.
"ASP" is a term many probably have not heard of before, but its what cloud providers were calling themselves in the early days (say, mid-late 90s) before the "cloud" term took off. I used to work for a regional ISP back in the late 90s and back then the writing was on the wall for any ISP with regards to providing only data - unless you can offer some sort of additional value (e.g., cloud services), data is a commodity and staying in that market only is just a race to the bottom in terms of profit margin.