Cloud in the Cloud

Google Chrome, Servicenow, RightNow Technologies, Software as a Service and IAAS/PAAS. Ive spent the past six months dwelling in this emerging services. The angle which I believe is most important is through the service providers. Think CapGemini, BT, Vodafone, Wipro, ACS, if these guys begin offering services then who is the next customer for ISV's? Typically we can see a shift of the end customer in which Integrated Software Vendors will begin noticing installed base erosion as the demand for service based delivery with tight SLA's shifts to the service providers.

This disruptive change will only be captured by the brave and those willing to change. It is inevitable that with 17% to 20% CAGRs within the Cloud Services that these incumbents are changing the way in which the end user consumes software.

But before we get ahead of ourselves, what is really going to the cloud? Think large enterprise. You own a database of your employees, benefits, payroll, customers, clients, partnership agreement forms....you are going to keep this close to your heart. So as the cloud reaches its steep climb, I think the enterprise will outsource only the periphery keeping the core in tact.

This still means a large portion of enterprise spend on infrastructure, governance and management will be outsourced. ISV's watch out!