Cloud Computing is not a panacea. It simply removes certain aspects of technology which are commoditized and focuses IT efforts further up the value chain. This will require re-education and reskilling but nonetheless presents an opportunity for those that are willing to evolve. One could argue technology no longer provides competitive advantage in the one-size fits all, multi-tenant approach of Cloud Computing. You can implement Google Apps or Salesforce which is the same out of the box for everyone, but the differentiation provided by IT will be through integration, analysis and extension of the cloud platform to provide value within your business. This requires IT skills, different types of IT skills but IT skills nonetheless. I can see how traditional IT service providers and VARs may start to feel nervous. They must also evolve their offering to take advantage of the opportunities presented by the new paradigm. Appirio is a great example of a next generation IT integrator who has done just that.
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” - William Pollard