What is Cloud Technology ?

Cloud technology is nothing new. Essentially what it is, is existing technology bundled up and given a new name and marketed to people.
http://www.youtube.com/watch?v=ae_DKNwK_ms

Personally, I'm on the fence about it. I think in a perfect world this would be the greatest thing ever... However I see some huge issues with it.

If large businesses, and corporations all start to do work with Cloud technology and for some reason the server crashes business will loose valuable information. This could put thousands of people out of jobs (depending on the severity of it).