Is cloud computing hyped?
Simply put, cloud computing can be imagined as an on demand delivery of resources whenever you need it.
You do not need to pre-setup or actually buy a dedicated set of resources that may be there rotting and waiting for a surge in demand to actually kick in and help.
To be honest, dedicated servers is a hectic way to go, mostly for startups and mid scale businesses. On one hand, you are trying hard to reach you audience, design and develop a product. You may even be coding the product yourself, planning and designing database architecture (if you are an IT company) and moreover have a payload to worry about the type of servers you want.
When it comes to dedicated servers, you have to plan out processors, the cores, size of rams, number of storage?!
In an ideal word, you will know your demand times, and your sleeping times, when 1-2 customers will be coming in, or when to expect a 1000, calculate an average and there you have your processors, ram and storage and bandwidth count except in reality, things are a little different, and mostly the resources are lacking or abundant.
Cloud gives you the solution to this hassle, typically you don't need need to pay for the resources if they are not in use. You can focus more on the things that actually matter, and focus less on the things that can't count as achievements (like planning processors when you have a cloud to up or down scale you resources as you go)