"Cloud computing is Internet-based computing , whereby shared resources, software, and information are provided to computers and other devices on demand" -Wikipedia
In practice cloud computing means using a software remotely, a software that is not installed on your computer, but on a remote server and you can use it as it is installed localy on your hard disc. This idea went live recently with the fast growing internet speed and bandwith and many popular software went to "cloud" and many more will follow. In futere (10 years for now) most of the software will be cloud computing.
About the software use, licences stays the same as for a normal commercial software trials, shareware and freeware. GNU/GPL (e.g. open source) are present too.
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