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Supporting Student Notes:

• The trend of moving to the Cloud is a logical evolutionary step made possible through the mass
adoption and capabilities of the internet and virtualization. Its impact on enterprise Information
Technology over the upcoming decade will be enormous given its advantages. We believe it will
prove to be disruptive, changing the game for all actors: software vendors, system integrators,
customers, governments and regulators.

Cloud computing is a disruptive innovation, that has taken root initially in simple applications at the
bottom of the market and is relentlessly moving ‘up market’, and will eventually displace established
competitors. Today it is only subtly disruptive, but it will impact all IT players over time, both through
"low-end disruption", and "new market disruption":

• Low end disruption: the performance of on premise applications now often overshoots the needs of
customers leaving room for Cloud providers to enter markets by providing sufficient functionality

• New market disruption: Cloud solutions fit new or emerging needs, creating market segments that
were previously not being served by on premise incumbents