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Cloud is a generic term for Internet based services.
It is not exclusive to the Pre or any other device.
Basically it goes like this.
You create data - it is sent out and stored in the magical internet cloud (google, for example). now, you don't have to worry about backing up that data and you can access that data from any web enabled device (PC, iPhone, Pre).
It separates the device from the data.
A quick example of how I use the cloud on a day to day basis.
I use multiple computers at work and then different computers at home...
I find a website that I like at work, I create a bookmark on my browser at work. I have an add-on for firefox (xmarks) that synchronizes this bookmark into the cloud. Now, when I go home I can have access to that same bookmark so I will always have the information I need no matter where I'm at.
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