Cloud computing eliminates the need to work on your actual computer.  It's possible because the "cloud" consists of networked servers that store data and software.  For example, instead of installing a word-processer and running it from your desktop to write the latest proposal, you can just log-on to services such as Google Documents and start working right away.

This revolutionary technology can apply to all aspects of video production.  Content creators might never have to meet face-to-face (in theory).  Let's say you wanted to start editing your film but your editor is taking a long vacation overseas.  How are you going to get 50 gigs of footage from his hard drive?  The solution is to store the footage on the cloud so that it's accessible to anyone who needs it.  The editor doesn't have to go back to his editing bay, but edit on a laptop from anywhere in the world (as long as he has Internet access).

Let's take it one step further: editing in the cloud.  There's no need to install software or plugins, because cloud-computing eliminated the installation process.  Wouldn't it be great to stop relying on external ard drives when you start editing?  Editing in the cloud just requires you to upload your footage, log in, and start editing right away.  

JayCut and Creaza are two examples of cloud-based services.  Are they as powerful as Avid or Final Cut Pro?  Not yet, but I'm confident that there are software developers who are developing powerful cloud-based editing software.   

Production companies will save money because the cloud eliminates the need for servers and hard drives.  Productivity increases because producers, clients, and editors are independent from external hard drives and individual computers.