NetSuite (N), which provides a suite of web-based business applications, usually has a tough first quarter (this is typically the case for software companies). But this time around, the company was able buck the trend. In Q1, NetSuite had a record quarter, with revenues up 5.7% to $43.9 million and cash flows from operations of $4.7 million.

I recently attended the NetSuite developer's conference, and got a good background on the overall strategy. I also was able to talk to many of the company's partners. All in all, there was much enthusiasm for the NetSuite platform as companies want to benefit from the growing customer base.

Not that long ago, the idea of cloud-computing was considered a fringe technology. Would major companies really allow an outside vendor to hold data -- via the Internet?

Well, the answer is yes. And of course, the biggest beneficiary is Salesforce.com (CRM), which is the pioneer of the cloud-computing mega trend.

Hewlett-Packard Company (HPQ), which just had a very good first quarter, is set to continue expanding its consulting gigs with a new service called "Cloud Design Services." Sounding like something from a private kindergarten class, the new service has a heavy statement: that more computing is shifting into the internet and off the local server.

HP's new offering here will be to design private "clouds" companies can use to connect users and the information they seek using intelligent design unique to the needs of each business it consults with. This is something new -- and a step above "off the shelf" offerings by International Business Machines Corp. (IBM) -- and it puts HP in an enviable spot: designing private "internet clouds" for businesses from the ground up.

The enterprise resource planning (ERP) software industry is mostly dominated by major players, such as Microsoft (MSFT) and SAP (SAP). However, because of the expense and complexity of the offerings, the recession has been tough. It's easy for companies to put off spending on ERP.

But there is one player in the space that continues to grow: NetSuite (N). In the latest quarter, the company posted revenues of $42.96 million, up from $41.40 million in the same period a year ago.

Google (GOOG) Apps -- which includes a suite of cloud-computing programs like Gmail, Google Docs and Google Sites -- has a decent footprint, with more than two million business customers. However, the company realizes it needs to do more as competitors come into the market, like Microsoft (MSFT) and IBM (IBM). Yes, the cloud is getting crowded.

In tech circles, you will hear lots about "cloud computing." Essentially, this means that software applications are operated through Internet connections -- and processed in huge data centers. Often, the results include lower costs and easier maintenance.

Of course, the dominant player in cloud computing is Salesforce.com (CRM). And based on its latest quarterly report, the company continues to grow and innovate.

Amazon, Inc. (AMZN) is in the clouds. So are Google, Inc. (GOOG), EMC (EMC) and Cisco (CSCO). Now, Microsoft Corporation (MSFT) is joining them, having announced on Tuesday its new Windows Azure cloud computing system. The new product will be released on January 1, 2010 -- a new solution for a new year.

Azure will deliver an online platform for the software development set to build their own mousetraps and provide plenty of storage space for users. Testing began a year ago, and full live version will be celebrated next year. For the first month, Azure will be free. The charges start in February.

Two of the newsletter industry's leading growth stock advisors remain bullish on the prospects of online retailer Amazon.com (NASDAQ: AMZN), based on growth in not only online retailing but new market areas ranging from the Kindle e-reader to cloud computing.

Mike Cintolo, editor of The Cabot Top Ten Report, explains, "Amazon.com recently blew away earnings expectations." Meanwhile, Alexander Green, investment director at The Oxford Club, says, "In our view, the best lies ahead for the company." Here are their reviews.

Mike Cintolo continues, "Amazon announced that its Kindle e-book reader is now its most popular selling item, both in units and in dollars. That led to a big acceleration in revenue growth (28%, the fastest in five quarters), while earnings leaped 67%.

Neither company is saying a thing yet, but word is Cisco Systems (NASDAQ: CSCO) and EMC (NYSE: EMC) are joining up to sell a new collection of products designed to deliver cloud computing capabilities, Reuters reports. Called vBlock, the cloud solution is intended to help the companies compete more effectively with IBM (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ).

The partnership, which no one is admitting to, involves a joint venture between Cisco and EMC that will sell vBlock. The former will supply the networking equipment and servers, with the latter kicking in the storage gear and virtualization technology through its VMWare (NYSE: VMW) subsidiary. The joint venture will put the systems together, integrate the components for clients, and make the whole pile of cables and silicon work. A formal announcement is expected next week.

Best Buy, Inc. (NYSE: BBY) continues to delve outside its retail roots and add services anywhere it can. But, this latest venture is a bit baffling: backup services for your mobile phone?

"Run properly, as Salesforce.com (NYSE: CRM) does, a cloud computing network also offers greater security, greater reliability, and lower costs (thanks to efficiencies of scale)," explains Timothy Lutts.

In The Cabot Stock of the Month report, he suggests, "Salesforce.com is very well managed, and in our mind its leadership in cloud computing gives it a fundamental advantage that should translate into growing market share gains and steady revenue flows for years to come."

"The company was founded a decade ago by a former Oracle executive, and today it's a leading vendor of Customer Relationship Management (CRM) services.

Years ago, Apple (NASDAQ: AAPL) helped secure its niche in the personal computer world by targeting the classroom. Many people who learned on the Apple II are among its most loyal fans today.

Google is making huge inroads following the same path, as its Google (NASDAQ: GOOG) Apps Education Edition has been adopted by more and more schools. It now claims that 5 million students are Googling in the classroom. If 5 million young people become accustomed to a gmail account, Google word processing, Google spreadsheets, the ability to create their own free websites, and to share video, this could lay the foundation for a lifetime of profits for the company.

"The term cloud computing is nothing particularly new or complicated; it simply means that instead of having software on your home, office or notebook computer, you run applications over the Internet," explains Gregg Early.

In Personal Finance says, "It's the way of the future as computing becomes increasingly mobile." Here, he looks at a trio of plays on this trend: Amazon.com (NASDAQ: AMZN), Salesforce.com (NYSE: CRM), and Rackspace Hosting (NYSE: RAX).

"I would point out that I'm writing this article on Google Docs. This document is stored on a Google server farm, not on my office computer.

NetSuite (NYSE: N) is one of the top players in the cloud-computing sector. In fact, three of the four most recent tech IPOs -- OpenTable (NASDAQ: OPEN), SolarWinds (NYSE: SWI), and LogMeIn (NASDAQ: LOGM) -- use the company's software to do things like manage customer relationships, financials, ecommerce, and so on.

This momentum is helping to boost NetSuite's top line. Despite the recessionary headwinds, the company's revenues increased 10% to $40.3 million, according to the Q2 report. While there was a net loss of $5 million, or $0.08 per share, NetSuite posted positive cash flows of $1.4 million.

Normally we think of revolutionary products created by start-ups or entrepreneurial minds just out of college, but the most talked about new projects of 2009 are being produced by some of the best known companies in the world.

Amazon.com Inc. (NASDAQ: AMZN): With its massive online presence and a truly efficient business model, Amazon has become the largest online retailer in the world. It is now taking on a new business, web services, namely cloud computing (learn more HERE), called the Amazon Elastic Compute Cloud (EC2). While hosting this infrastructure and presenting e-commerce with a reasonably affordable alternative with no up-front costs, Amazon has taken an early lead in this space, with some believing its cloud computing business will one day overtake retailing. "Amazon will be like a book store that sells cocaine out the back door. Books will be just a front to sell storage and cloud computing." says Larry Dignan, Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic.