Cloud Computing is the current buzzword in the computing circuit. These days it’s hard to miss an article on this topic in technology blogs, websites, and magazines. While the term ‘Cloud’ is relatively new, the concept isn’t. Almost everyone has used a form of cloud computing. Web mail services, search, online productivity tools, online security services, and online storage are all forms of Software as a Service (SaaS) or Infrastructure as a Service (IaaS)—subsets of cloud computing.

Many CIOs hail cloud computing and its benefits. The prime advantage is cost—it can save businesses as much as 30 – 60 percent of technology expenditure. Analysts say it will deliver IT in a more flexible, dynamic environment, which makes for a more agile business. The potential market for cloud services in India is pegged at $70 million. Indian enterprises such as Ashok Leyland, Tata Elxsi, Bharti, Infosys, Asian Paints, and Maruti are either experimenting with, or using cloud computing services.

For this month’s cover story Network Computing correspondent Harshal Kallayanpur investigates the state of cloud computing in India Inc. Most CIOs he spoke to agree that the cloud has tremendous potential. Almost all said they were currently evaluating cloud services. In other stories in this issue, Forrester Research analyst, James Staten helps you choose the right cloud computing platform for your enterprise. Dr Tom Leighton, Co-Founder and Chief Scientist at Akamai Technologies suggests a cloud computing framework.

Far from the perception that the SaaS model has not been successful in India, global SaaS poster boy, Salesforce.com can teach you a thing or two about playing the SaaS game here. Its competitors say local infrastructure problems like bandwidth make the SaaS model unviable for Indian environments. Yet Salesforce was able to work around such issues through innovative solutions like the offline PDA model. The result: An impressive roster of customers such as Sify Technologies, Lodha Group, eBay India, Bharti AXA General Insurance, Servion, and HCL. Be sure to read our Special Feature on Saleforce’s success in India.