VCs Have Their Heads in the Clouds [GigaOM]

When was the last time you bought software that came in a box, an actual CD that you put into your disc drive in order to load it onto your computer? It’s probably been a while, since most applications are now downloaded straight from the Internet. Today a growing number of companies are buying their computing capabilities that way, too. Instead of buying a rack of servers from IBM, Dell or HP, or a dedicated box hosted in a data center, businesses are buying compute power in the form of services from companies like Amazon, GoGrid and Mosso. Such services are generally referred to as cloud computing, and the game-changing potential of those services has venture firms sitting up and taking notice. Indeed, after spending the past few years pouring money into Facebook applications and me-too social networks, venture firms are... [read full story]