Cloud computing refers to delivering hosted services over the Internet. It involves delivering computational resources through a computer network on-demand. Cloud computing makes infrastructure, applications, and business processes accessible entirely on the Internet without needing to clone your IT department or break your budget. When developing a cloud computing strategy, companies should consider their business strategy, current IT environment, expense structure, rules and regulations, data architecture, security, business processes, and service management to determine when public, private or hybrid cloud models make the most sense. A pilot project can help test the cloud before fully implementing a strategy.