Software Pulse
January 12, 2011

Kamesh PemmarajuFive Cloud Trends for 2011 - and Beyond

Here is a closer look at how the rise of hybrid clouds, the rapid emergence of global players, the struggle for PaaS dominance and other key developments will drive the cloud market this year.

By Kamesh Pemmaraju, Sand Hill Group

There’s no doubt that cloud computing is re-energizing the technology industry. A look at what 2011 holds for the software industry finds the cloud behind just about every driver of software innovation.

But what specific developments will shape the cloud itself? Based on my primary research, executive interviews and close monitoring of vendor developments during 2010, I predict five major trends will shape the cloud space during the coming year.


Attention Vendors - Take Our Cloud Leaders Survey

Sand Hill Group is launching our “Leaders in the Cloud 2011” research project. Software and services executives are invited to take a 10-minute survey about their company’s cloud strategies. Respondents will receive priority access to a complimentary copy of the study’s findings this spring. (Click here to read highlights from last year’s study.) Help shape the software industry’s cloud perspective - click here to take the survey and share your insight!

The Benefits of Nearshoring

Jeff Kaplan

Leonardo Mattiazzi of Ci&T explores the advantages of nearshoring in lean and agile development projects, including reducing TCO and taking advantage of time zone, geographical and cultural similarities. Read more in this post to the Blog on R&D best practices.

The Cloud Year-in-Review 2010

Kamesh Pemmaraju

Kamesh Pemmaraju delivers a comprehensive look back at the news, trends and moves which shaped the past year in cloud computing in this post to his Blog, Leaders in the Cloud.

McKinsey Global Survey: Economic Conditions Snapshot

Executives around the world anticipate greater influence of emerging-economy market power over the next five years and rising inflation rates in 2011. Read more in this article from The McKinsey Quarterly.

Accelerate Your Strategy at The Cloud Industry Summit

The Cloud Industry Summit at Cloud Connect brings together investors, entrepreneurs, and the cloud computing industry for two days of discussion, dialog and networking March 7-10, 2011 at the Santa Clara Convention Center. Sand Hill Group's M.R. Rangaswami chairs this exclusive track which includes views from leading thinkers, global executives, and financial experts on to survive and thrive in an era of on-demand IT. Click here to review the agenda and register for this industry-shaping event.

Poll: Biggest Cloud Trend?

Which trend in cloud computing will have the most significant impact on the software business in 2011?
Take our Pulse Poll >>

Top Stories from the Past Week

  1. Another top Microsoft exec heads for the door (Seattle Times)
  2. Oracle kicks off cloud computing road show (Computerworld)
  3. IT hiring shows gains but jobs may be shifting (Computerworld)
  4. Black Duck gets bigger (ZDnet)
  5. Motorola Xoom tablet named best gadget at CES (B2C Marketing Insider)

The Latest Software Business News on

All Headlines: Xerox PARC gets a new CEO.

VC Activity: Cloud database vendor Clustrix receives $12 million.

M&A Deals: buys Open Source web conferencing company Dimdim for $31 million.

Executive Moves: SAP exec Bill Wohl becomes Chief Communications Officer at HP.

Quote of the Week

“I’ve been as high as anybody on Microsoft over the past couple years, especially when it comes to cloud computing, but [the news of Bob Muglia’s departure] has me wholly unsure of what to expect from Microsoft’s cloud efforts going forward.”

-GigaOM’s Derrick Harris on the latest executive moves at Microsoft

This Week's Sponsor

Ness Software Products

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Software Pulse

Software Pulse is a publication of, the online resource for software business strategy.

Publisher: M.R. Rangaswami
Editor: Maryann Jones Thompson
Assistant Editor: Jane Ann Chien

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click here. is published by Sand Hill Group, which provides investment and management advice to emerging leaders in the $600 billion enterprise software, services and solutions market. Sand Hill Group produces the Software and the Enterprise series of conferences for industry executives, and authors research reports on cutting-edge technology topics.

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