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Hosting location and country level domain have been important factors for SEO to target results specific to a country. Hosting has been important to identify the location of a web site as search engines have been looking at IP address of the site to detect server location.
If a site was hosted on the server that was physically located in a country then site would have been included in the country specific searches .SEO suggestions for a site targeting Australia would have been to chooses provider from America than Australia. Google also allows web masters to set the GEO location within web masters tools to help them target a specific market.
Cloud Computing influences hosting location factor .The reason is site can be hosted anywhere in the cloud web pages that are served locally.
Site that are in cloud show web pages that are served locally to create a specific target countries .The site that has highest authority outranks others .If Australian version has strongest authority then it outsmarts American version.
When cloud becomes more popular, Search engines would change their algorithms taking this factor into consideration. This is going to revolutionize the way the site operates across different countries in different languages.
Google caffeine is a strategy by which Google index web pages on a rapid scale. Speed of the page is an important factor in SEO and it started to play important rankings of web sites in search results.
Key strength of cloud computing is rapid delivery of web pages with faster loading time. Cloud computing uses resources more effectively and can have a huge impact on site loading time.