Elearning has grown rapidly in importance for institutions and has been largely facilitated through the "walled garden" of the virtual learning environment. Meanwhile many students are creating their own personal learning environments by combining the various Web 2.0 services they find most useful. Cloud computing offers new opportunities for institutions to provide dynamic and up-to-date Internet-based, e-learning applications while ensuring high levels of service, and compliance with institutional policies and legislation. The cloud is rapidly evolving in its architecture, the services offered and the logistics of deployment. It brings with it risks but also possibilities for learners and for educational institutions to reduce costs and enhance services. It is likely to severely disrupt the business model developed by existing vendors of VLEs who provide an integrated suite of e-learning tools, installed and maintained by the institution's IT services department.