BOULDER - It's undoubtedly a cloudy subject.

Cloud computing means different things to different people but its premise is still the same: Using Web-based software and data services, managed by a third party, via the Internet instead of having physical hardware or software in house.

In its most-basic, everyday, most-popular form, are Web-based e-mail systems like Gmail and Hotmail. E-mail services like that store everything on other servers, unlike other means of office communication, and allow users to access the information from anywhere with an Internet connection.

But beyond e-mail systems, the cloud offers countless ways for big and small businesses to save money.

Whether it's large companies using the cloud for data storage to eliminate physical drives and dedicated management staff, or small businesses using it for document management to save time and effort, many technologists think cloud computing is just beginning to gain momentum.

"Even in the last year the progress we've made in this space has been enormous," said Dennis Quan, IBM Software Group's director of autonomic computing.

While cloud computing has been around for years, it's becoming more prominent in nearly all sectors of business - especially businesses engulfed in technology.

"It's a huge benefit for startups," said Ben Brinckerhoff, chief executive officer of Devver Inc., a Boulder-based startup. "We're tight on cash yet, but we're tight on time."

Devver, a former TechStars startup, uses the cloud to help develop software development tools.

Brinckerhoff said even though his company is a software-oriented business, his team isn't proficient at managing e-mail or documents. So he uses Gmail and Google Docs. Both are free programs that let users access content from nearly anywhere nearly all the time.

With the cloud, gone are the days of sending a document to co-workers via e-mail to have each person approve changes.

With Google Docs, for instance, a company can create and share a spreadsheet or text document amongst co-workers by uploading it to the Google Docs Web site. Then employees can make changes, which can be tracked by a manager, to that version, and the changes will be seen in real time.

Brinckerhoff said the cloud-based application has potential to increase a company's efficiency - like it does with his company.

"That's the power of the cloud," he said. "That availability; that accessibility."

Besides software applications like Google Docs, more and more companies are touting software-as-a-service applications. Software-as-a-service provides cloud-based software applications.

Many companies use software-as-a-service because it's easily scalable and can be upgraded with little or no downtime. Those are two characteristics of cloud computing in general.

Depending on the size and industry of the company, Dave Jilk, Boulder-based Standing Cloud Inc.'s chief technology officer, said companies should look into using the cloud for data storage.

Instead of housing storage racks, businesses can use sites like Amazon Web Services for on-demand data storage and recovery. That allows companies to pay a specific fee for the amount of time they actively use the server - such as 10 cents per hour.

Jilk said there are other, less expensive, options such as RackSpace.com or GoGrid.com available as well.

As with other cloud solutions, using a data-storage service nearly eliminates the need for a dedicated storage or network manager. But there are potential hazards, too.

Jilk, whose company provides software-as-a-service to manage cloud-based applications, said cloud-based storage isn't as secure as some businesses - like medical offices and credit card companies - require.

However, if a company isn't incredibly concerned about its data, then an online server will be fine. They are secure, he said.

Companies also need to think about the potential downtime some cloud-based systems encounter. Brinckerhoff and Jilk both said the amount of downtime is marginal, but it does happen.

Businesses that want to use the cloud should find an area that makes sense and then slowly integrate it, the three men said. Whether that's Google Apps, virtual servers, or anything else, it's key to switch slowly to make sure it works for the company and its employees.

Regardless of how or to what extent, Quan said companies are paying attention to the cloud and trying to find ways to incorporate it into their own business. And he doesn't see that changing.

He, as well as Jilk and Brinckerhoff, said the popularity of smart phones will make the cloud even more important as people want constant access to their data whether from a desktop or laptop computer or a smart phone.

"I think it's absolutely just the tip of the iceberg," Jilk said.

Brinckerhoff envisions the cloud becoming a hybrid between cloud-based and desktop-based computing.

For instance, someone may store a slew of songs on his computer as well as in the cloud. That allows him to access them anywhere while still securing them on a physical hard drive. Or perhaps applications will simultaneously save a document to the hard drive and the cloud, he said.