Cloud computing is the current trendy term used to describe services like Google Apps, iCloud, Evernote, Microsoft Skydrive, and more. Being "in the cloud" is just tech jargon meaning that the actual programs you use are running on remote servers elsewhere in the world, and the user is accessing them over the Internet via a web browser.
Before broadband Internet, cloud computing was not possible, and it's actually a huge step forward in computer technology. The advantages are that the user doesn't need to download and maintain software on their computer--the service provider does that for them--and that the user doesn't have to worry about backing up files because the service provider maintains their files for them. Disadvantages include privacy concerns (how much of your life do you want to store on the Internet?), security concerns (can Google be hacked?), and that a high speed Internet connection is required to reach and use the services.
Google is one of the biggest cloud computing providers in the world, and it operates dozens of data centers all around the world that process more than 20 petabytes (20 million gigabytes) of information per day. And while they try to keep the exact locations of those data centers secret, the map below shows the locations of some of their known data centers.
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