Cloud computing's potential is reflected in highflying stocks of companies actively involved. Stumbling blocks include security concerns and confusion about what the cloud really is.

Technology investors have their heads in the cloud these days.
Cloud computing, which supplies on-demand hosted services over the Internet, requires only that its clients have a computer and Internet access. It handles the functions traditionally performed by a firm's in-house hardware and software.

Salesforce.com (CRM) is a cloud-based provider of customer relationship management services. Its applications can be customized and integrated with other software applications and are sold on a subscription basis. The company’s offerings have quickly become a ubiquitous sight at offices around the world, and shares have had no problem reflecting the situation. Now trading at nearly 250X TTM EPS, CRM is among the highest of the high-flyers in today’s market landscape.