I think that there will be lots of movement to the cloud, much like we've seen email and web services move to cloud providers. However I don't share Ed's vision either. I've heard this about outsourcing, and web sites over the last two decades. We still have internal staffs, even in small companies.

I do think, and would like to see, more cloud based deployments internally, as just generic services that aren't necessarily tied to a machine. You ask for a database, and you just get one that's on your network. You deploy to it in a private cloud, connect to it, everything as a cloud based service. It's just something you control, and you add more servers (internally) to it as you need them.