Cloud computing is that where you rent computational and storage services according to your needs. Here are some of the benefits that cloud computing offers.
You don’t have to buy any hardware and software (of course its licensing).
You don’t have to hire some highly technical IT resources to manage all the hardware and software for you. In fact you don’t have to even get the services of some consulting company.
If your business grows means users increase you don’t have to buy additional hardware.
If there are some security updates or patches you don’t have to apply your self, it will be the responsibility of your cloud computing vendor.
If somehow your business goes into lost you can down scale your computing environment.
If you have a site which has some load during weekends, on new season or on holidays then you don’t have to buy and configure additional hardware and software licenses instead you up scale your computing environment and then again downscale when peak time goes. Some cloud computing vendors as Microsoft provides the ability to auto scale your cloud computing environment.
You don’t have to buy hardware/software for staging environment, create the same environment using cloud computing as your application will actually have in production, in this you will not reduce the cost but if later on you are satisfied with the testing you can remove that staging environment at all.
This model of computing is very flexible you pay only for the services you use. All type of business (small and big companies) should use cloud computing.