Entrepreneurs who are in the IT industry who employ only a handful of employees usually just outsource hosting applications to an off-shore facility. This proves to be more expensive however. By definition, cloud computing makes use of the excess server capacity of specialized providers. Technically, you would still be outsourcing hosting applications but this time, you would only be paying for the server capacity you need in a specific time although you would need to give out information such as some intellectual property, your lists of customers, and even proprietary applications.
Apart from hosting applications, cloud computing also works for entrepreneurs to sell services for their virtual companies. For those who are thinking of setting up a start up business in the IT industry, cloud computing may yet be the best option. The only factor that seems to be a hindrance is that most entrepreneurs are not yet aware what cloud computing can do for their business and therefore cannot possibly understand how it can help boost their performance.