Cloud computing is changing the way computing is undertaken. Users of cloud computing infrastructure and services do not have to make upfront, capital-intensive investments in information technology (IT) infrastructure and software but, instead, can pay for computing resources in a pay-as-you go model. Cloud computing providers have significantly lower operating costs than companies would have if they ran their own IT infrastructure, due to their global scale and the possibility to aggregate the demand of multiple users of cloud computing, especially in ‘public clouds’. They are able to provision computing resources in a rapid and elastic way, allowing adjustment to changing requirements. From an economic perspective, cloud computing provides the ability to access IT resources on demand without the need for significant capital expenditure. It thereby significantly lowers the entry barriers for new entrants in multiple sectors. Cloud computing has thus the potential to become a veritable platform for innovation that spurs the development of new products and services. In the context of innovation, cloud computing also facilitates online collaboration on a global scale.