I'm not a big avocate of buzz technology. However cloud computing can be quite useful for many reasons, depending upon what you're getting for your money of course. One advantage is some amount of abstraction around server management. You can focus on the business problem hopefully more than physical hardware. Plus, you sometimes can have fault tolerance and clustering, that you need not worry about, but adds additional layers of availability. It is hard to say for sure if it is something you should consider, but I don't think it's *always* a waste.