Cloud and IT are not mutually exclusive. The roles they provide are so different I can't at all see why anyone bothers to makes this apples and oranges argument.
A large part of what IT departments currently do will, eventually, be replaced by cloud-based services that are easily managed. When you hire Google Apps, a lot of your server management disappears. When you put your servers on EC2, you no longer need to manage the boxes they run on.
Things like custom app development, account management and things like that will remain.