[arinlen]

> Not sure what are their IT needs, but I guess the larger SMEs are the target market for this service.

I'd argue that SMEs are the ideal market for cloud services.

Small shops with even smaller teams comprised of jack-of-all-trades are willing to pay a hefty premium for managed services that allow their teams for get things done without having to do everything themselves.

Once your company grows beyond the definition of a SME, its able to roll their own infrastructure and do their thing in more cost-effective ways that don't involve handing over their core business to external and even foreign companies.

[pjmlp]

At the beginning, then they hire the likes of HCL, Infosys, Wipro, TCS,.... because IT isn't their core business, and C levels see it as a cost center and distraction.

Eventually the few devs left get "sold" to the contracting company, with the architects left as management for the contractors.

Have seen this happening already several times since 2007.