Does Cloud Computing Signal the End of SMB?

Just about every magazine or newspaper I pick up these days has some reference to cloud computing. Last week both Business Week (Cloud Computing: Eyes on the Skies) and the Wall Street Journal (Sky High in the Tech World...about Microsoft Live Mesh) had pieces on the trend. In my opinion, coverage from these broad business publications indicates something more than just a little technology tinkering is afoot.

But with all of this activity, I'm stuck wondering....how do the large system vendors who have also been promoting sales to small and medium businesses (SMB) rationalize these two markets. If you are a large systems vendor selling servers and storage, can you promote your cloud computing strategy and ask these businesses to keep buying more equipment?

If everything is moving to the cloud, why would any small business ever consider buying a small storage system? The SMB market has been perceived as a major source of growth for equipment vendors. Perhaps it will soon be replaced by a cloud driven push to sell web services instead.

Comments

[M.S.]

Well, I'm sorry that I have to say this, but media coverage means nothing - at least in terms of 'technology momentum' or just for 'being right'. You don't have to go much back in time to realize, that a hype mustn't mean that common zeitgeist is ready for what is hype'd... -
I just like to remind you of the dot-com-bubble.