All things evolve, including technology

Implications: Cloud computing will increase productivity, reduce technology burdens, and improve cash flows as monthly subscriptions/utility services.  While we are at the forefront of a new technology generation, SaaS/cloud computing will evolve and as it does, client installed software, locally stored data and the burdens associated with them will go the way of the dodo.

Analysis: As little as 15 years ago personal answering machines recorded to a cassette tape.  The tape and device were maintained and owned by the individual.  Today, the "answering machine" is in the cloud, powered by your service provider and typically included for free with your service.  Telephony and voicemail are vital components in our daily lives yet we trust these essential communication elements to a service provider - a phone company, a cable company, even an internet company - where the hardware and software are created, maintained, updated and made available without our involvement or concern.

The PC/software market are directly analogous to the answering machine of yesteryear.  Today we own a PC, purchase, install and maintain software to the device; we create and maintain data also on this device and attempt to maintain it with anti-virus, anti-spyware, etc. Software is moving to the cloud as a service.  Data storage is also moving to the cloud.  The efficiencies gained (no maintenance, no updates or concerns) and cost savings will increase productivity and reduce these complex, essential tools to simple subscribe and use utilities.

As these technologies move to the cloud, the ease of use and consumer trust will grow over time.  Encryption, privacy concerns, data/application availability, etc. as technologies will improve and with it, user adoption and mitigation of user trust and concern.