Cloud Computing

In recent months, one reads more and more regarding the "new" concept of cloud computing, where, if I understand it correctly, the applications and data are actually maintained on some remote server of some sort, while the local PC is used mostly as a terminal device.

Many years ago, I remember doing finite element analysis, which required sending a data base to an off-site computer via a telephone connection (usually overnight to take advantage of lower phone rates). Results were usually available the next morning. One generally then had to correct the database (not being the world's most accurate typist, the most common problem was a misplaced comma, or a period instead of a comma). I also remember paying a significant price for my first FEA software that would run on a PC (today, of course, there are a number of free options available). Running the application on a PC significantly reduced the time to problem solution, even though it might take many hours to run a complete analysis (tying up the PC as well)- most errors were caught when the program aborted early due to the same sort of tying errors, and fewer days were required from the start to the finished product.

Now, it seems to me, the industry is trying to take us BACKWARDS in time. Computer hardware is so cheap these days, it is viable to purchase additional dedicated equipment and software for such projects for less than what the original software costs. One maintains local control of both applications and data.

My question is this: what is the advantage of cloud computing to the end user? I can understand why the software industry might want us to move in this direction, but why should I want to return to the old days?