Software development environments (IDEs) have not followed the IT industry's inexorable trend towards distribution. They do too little to address the problems raised by today's increasingly distributed projects; neither do they facilitate collaborative and interactive development practices. A consequence is the continued reliance of today's IDEs on paradigms such as traditional configuration management, which were developed for earlier modes of operation and hamper collaborative projects. This contribution describes a new paradigm: cloud-based development, which caters to the specific needs of distributed and collaborative projects. The CloudStudio IDE embodies this paradigm by enabling developers to work on a shared project repository. Configuration management becomes unobtrusive; it replaces the explicit update-modify-commit cycle by interactive editing and real-time conflict tracking and management. A case study involving three teams of pairs demonstrates the usability of CloudStudio and its advantages for collaborative software development over traditional configuration management practices.