What is Cloud Computing and Web2.0?

I've been hearing much about cloud computing, less about Web 2.0, in the news and was thrilled to find out I'M ALREADY IN THE CLOUD! Basically, the "cloud" is a network of servers and computers housed on the internet, with multiple redundant backup where personal files, application and many computing services reside. iTunes might be an example of this because as I download music on my laptop, my personal list of tunes is also stored on iTunes servers. This is how I can access my playlists from another computer simply by logging into iTunes. Google Docs are another example of cloud-based applications. Rather than editing and storing a document on my laptop, I can start, edit and store a document in Google Docs. Lastly, services like Picasa let me store my valuable photos of my daughter without fear of my laptop crashing and losing her history. With the multiple redundancy of cloud servers, I know my pictures are safe. Here's one of my favorites my daughter took of me

 I can also see that moving into the future we can probably have smaller and smaller devices for personal computing as space will not be an issue with most of our applications and personal files stored, not on our laptops or desktops with massive memory, but on cloud servers with practically unlimited storage.