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The cloud at least made a bit of sense. Offload the requirements of hosting an app or colocating a server to other folks, and you just use it. It’s somebody else’s computer, and it’s their problem if something goes wrong.
The problem is that the MBAs making the decision didn’t understand what was going on in the first place, so “the cloud” because a catch-all buzzword for anything they didn’t want to think too hard about.