
A few months ago, we had the opportunity to speak with Jeff Kaplan – a leading influencer in Software-as-a-Service (SaaS), cloud computing and managed services and managing director of THINKstrategies Inc. You can read his personal work on the Thinkstrategies blog. This week, I reconnected with him and heard more of his specific thoughts around Cloud, including revenue opportunities and potential challenges, in an interview.
Jeff, why are more companies migrating to the cloud?
Jeff: Companies of all sizes are moving to cloud in response to today’s turbulent economy and the need to accelerate the rollout of new IT/application capabilities in a more economic and agile fashion.
Why use a cloud-based service to help them get there?
Jeff: Not only do today’s cloud computing services offer more economical and flexible alternatives to legacy hardware and software, they are also more responsive to an increasingly mobile and Web-centric workforce which needs to access applications, data and computing resources from anywhere at anytime.
What are the revenue opportunities?
Jeff: There are tremendous revenue opportunities at all levels of the cloud ranging from horizontal and industry-specific business applications to service delivery infrastructure management tools and resources.
What are the pitfalls and risk considerations?
Jeff: Reliability, accessibility and security (RAS) are the primary customer concerns, but the risks and pitfalls go far beyond these areas, including service level assurance, compliance and management control. But, most importantly is that the business model for building and sustaining a financially viable cloud computing service is yet to be developed. Therefore, long-term vendor viability in the face of an inevitable industry shakeout is a key issue.

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