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.

It's far from easy selling enterprise software today. But some companies are finding ways to grow. Just look at Red Hat (NYSE: RHT), which is a leader in open source solutions.

The company's applications, which help to reduce costs and increase productivity, have shown lots of resilience during the recession. For example, according to Red Hat's latest earnings report, the top 25 deals that were up for renewal got renewed. Actually, theses customers increased the commitments by 120%.

Cloud computing is a type of on-demand hosting services on the internet. Not only a necessity for mainstream e-commerce sites, it also increases efficiency, is scalable, and lowers expenses. The monetary savings may be misleading to consumers and businesses who do not fully understand the potential risks involved.

With a pay-as-you-go type structure, users are only charged for the amount of traffic, bandwidth, and memory used. Online businesses become more efficient by only utilizing the storage and space needed, while also being assured capacity for any usage increases. The buzz has been building for years, so cloud computing has attracted a diverse customer base, ranging from popular social networks such as Twitter and Facebook, to educational websites of Arizona State and Northwestern University.

So-called "cloud computing" is the big-thing in Corporate America – that is, offloading information technology (IT) services to the web. It's a cost-saver since there is no need to buy infrastructure.

Some of the hot players in the space include salesforce.com, inc. (NYSE: CRM) and NetSuite Inc. (NYSE: N).

Well,there is another company getting traction: Google, Inc (Nasdaq: GOOG).

And, it should be no surprise. After all, Google has a global web infrastructure that has massive scale. Moreover, it has the technical capability to build mission-critical applications -- and yet they are easy to use.

A battle royal is shaping up in the world of cloud computing between long-standing dominant software giant Microsoft (NASDAQ: MSFT) and its biggest threat of the past few years, internet runaway Google (NASDAQ: GOOG).

BusinessWeek is reporting that Microsoft plans to build 20 new data centers over the next few years to serve corporations large and small which would prefer to store their data in a secure environment and be able to access it over the internet. Google started along the same path several years ago with the same goal.

The data centers are likely to cost as much as a billion dollars each. Companies opting to use this type of service will be delegating the acquisition, maintenance, and security required to store large amounts of data while preserving capital for core business activities.

One novel approach in Microsoft's newest facility is to fill the 700,000 square-foot floor with prepackaged shipping containers instead of acres of racks containing servers. Each of the containers can hold 2,500 servers, and the floor can hold up to 224 containers. That's a potential maximum of 560,000 servers.

It's hard to imagine Google (NASDAQ: GOOG) as anything but a search engine for most consumers and even business leaders. The company that probably has more grand ambitions than any I can think of may want to tackle providing computing horsepower to needy customers in the future, though -- and in turn, become a service provider of sorts. This is on top of its ambition to become the largest advertising network the planet has ever seen.

The scale of Google's global network and how it works technically would boggle the mind of many a Ph.D. It's those brainiacs who designed the sprawling network of Google's cheaper-by-the-dozen normal computer servers who are now trying to find more ways to utilize all that computing power outside of providing search results in a fraction of a second to billions of queries every month. As Google continues to build massive data centers, what is it going to do with all that power? Become Skynet, the infamous, world-dominating global computer network from the Terminator movies? Nah -- there are bigger business fish to fry.