A new age of more flexible, less expensive, and more secure computing will emerge soon if governments act wisely.

The Internet is entering a new phase that represents a fundamental shift in how computing is done. This phase, called Cloud computing, includes activities such as Web 2.0, Web services, the Grid, and Software as a Service, which are enabling users to tap data and software residing on the Internet rather than on a personal computer or a local server. Some leading technologists have forecast that within 5 to 10 years, 80% or even 90% of the world’s computing and data storage will occur “in the Cloud.”