Although the abstract concept of cloud computing has been evolving for decades, the term itself is rather new, dating back to 1997 when it was borrowed from the telecommunications industry to refer to hosted software and hardware services managed off of the customer's premises.
Of all the technologies that had to converge to make cloud computing possible, high speed networking was perhaps the most important. Without the ability to get huge amounts of data transferred between clients and hosts, cloud computing would always be too slow to be practical. Widespread deployment of broadband Internet access and an upgraded Internet backbone have made it possible to run computer applications through a Web browser almost as fast as they could run if they were installed directly on the client computer.
Other technologies including processor architecture and virtualized servers also have been vital to the development of cloud computing.
Through cloud computing, customers became responsible for getting "plugged in" to the cloud while service providers became responsible for making sure that software and hardware services are available when they are needed.