At the Search Engine Strategies Conference in August 2006, in an informal conversation, Google CEO Eric Schmidt stated:

What’s interesting [now] is that there is an emergent new model, and you all are here because you are part of that new model. I don’t think people have really understood how big this opportunity really is. It starts with the premise that the data services and architecture should be on servers. We call it cloud computing – they should be in a “cloud” somewhere. And that if you have the right kind of browser or the right kind of access, it doesn’t matter whether you have a PC or a Mac or a mobile phone or a BlackBerry or what have you – or new devices still to be developed – you can get access to the cloud. There are a number of companies that have benefited from that. Obviously, Google, Yahoo!, eBay, Amazon come to mind. The computation and the data and so forth are in the servers.

My interpretation of cloud computing is summarized in the following figure.

Yesterday, I introduced the concept of Synced-Data Applications (SDAs). SDAs are summarized in the following figure.

SDAs owe their existence to the convergence of the cloud and the desktop/handheld.