I’m not going to analyze the definition of “Cloud Applications” related to hardware & software requirements or the perception that this technology is new to the market. What I would like to address is why companies are starting to purchase these solutions.
The maturity of cloud-based applications combined with increased networks performance and security has provided any business owner options for how they can manage their digital information. It has become very compelling to outsource this requirement and regard this service as an utility bill. The initial cost and learning curve is minimal allowing most business owners to focus on their core competency. Another factor to consider is new Cloud2-base systems allow integrated social media feedback to your organization, providing a compelling case for increased customer satisfaction and shorter sales cycles. Even Verizon is getting into Cloud business.
In the end, you will probably see a blend for Cloud-based solutions with traditional internal proprietary solutions. Understanding what is best for you requires long-term planning and assessment of internal budget and resources required to properly manage in regards to your business needs.