Cloud computing has certainly gained momentum over the last 12 months. It has no doubt struck accord with cash strapped businesses. But our view is cloud computing is too low down the software stack and is predominantly concerned with vitualising platforms. As more and more businesses compete in this space we see the value of cloud computing moving up the stack and unleashing its service orientated flexibility on the domain of traditional software as a service vendors. Confusing? They both operate in the cloud but for pure software as a service vendors to add even more benefits to business they need to reach into organisations. Clouds will grow tentacles into businesses as the membrane between the traditional I.T. systems and the cloud gets thinner. What does this mean in real terms?
Data will become the platform but it will extend with its applications into the cloud. As with the web the data will reside in the cloud along with an app store approach to enterprise applications. Internal private clouds and infrastructure will become agents to the cloud. The cloud concept will increase up the value chain where cost savings are only half the reason why people will make the move.