Although IMHO Cloud Computing is a little over hyped but it is working for a lot of people. There was a time when only big businesses owned the best of the computers but with hardware costs coming down everybody started having there own machines.
Impact of Low Cost Hardware on Business
In a typical business scenario whenever you need more computing you would probably ask an IT guy to install more systems in to the server room. There are chances that your resources are not utilized properly.
Only at some peak hours your requirement for resources will spike and else it will not be wrong to say that your resources will be wasted.