Cloud Computing is an attempt to get a concept into the minds of the less technically inclined at a Business level. To even start explaining to a Business Level exec (etc) the detail of remote services, on line storage, Web Marketing, leasing software components yaddie yaddie yadda, is a fruitless exercise - as would be explaining the real intricacies (as opposed to ill-informed emotional rumour) of the Stock Market to a technical Guru who spends their life up to their armpits in bits and ergs and is equally baffled by many financial concepts.
At a business level, the critical importance of IT is well understood even if its operation is not, and in most Corporations is regarded as a "cost of doing business" - an important principle, as the funding is then regarded as base Infrastructure funding, and a "must have". There's always the euphamistic 1% exception, surprise surprise, but by in large thats the view at Business level.
The Cloud Computing concept strikes a cord with Business level individuals (when explained) as it "replaces" or "enhances" the "IT Department" in their minds and puts a fluffy concept of online services (which are still rapidly evolving as the rush to get everything online continues) in a conceptual context. The end result is at the senior levels they understand better then, that the services they need will come from "the cloud" - whilst that may sound daft to some, in the world of the higher exec, it means a lot where they have to deal in large scale concepts in order to steer the "strategic ship", and it really does help in putting round pegs in round holes.
To those not operating at that level that concept makes no sense, but then, its not aimed at them. The end result is many from a non-business background try to rationalise it in terms they do understand which results in inevitable mistatement of why the concept there and its purpose.
If you want to test that out, try next time you are work and get into the benefits of NAS and why the long term trend in software is subscription modules with a non-tech Boss, and see how far you get.
Then explain it in terms of services provided by "The Cloud" which results in a better return on IT investment, the former explanation will send the recipient to sleep, the latter will get an invite to lunch with a request for ongoing help to "clear the fog" about IT from their confused brain.