Digital Bullet: Cloud Computing – what are the major developments and implications?

We're told that very soon we'll be living in a world where everything we do in computing, including data and applications on our mobile phone, will come down from the cloud when we turn on and go up to the cloud when we switch off. Google apps are just the beginning. Not only that, but that any single user can in theory draw on massive storage capacity or processing capacity available in the cloud. What do you think the major developments and implications will be arising from cloud computing?