1. Actually, its the opposite. The demand for higher power local computing in a smaller package will continue to grow. Here’s why:
    1) The internet and access to it is still not reliable in many places, and connectivity is not yet seemless.
    2) Internet latency is still too high (until it is imperceptible you will find most business users preferring their own devices for computing)
    3) Privacy… past and future security and redundancy snaffu’s will erode trust in centralized information storage (yet the cloud will grow as a place to backup and replicate)
    4) The prosumer / business user need for high power business apps… to essentially carry their PC with them in their pocket and power business apps that are not easily powered by today’s mobile devices or web apps, and be able to doc anywhere (in car, desk, or other local).
    5) Resilience and reliability – Distributed storage and computing systems are much more resilient to outages. Of course, this is if the definition of the cloud is large data centers. If the definition of the cloud expands (as I think it will) to mean that the people and systems around and close to me can provide me with both storage and extra computing power (think along the lines of hive computing), your assertion might have more merit. As it stands however, the challenges to create such an environment are extremely large and creating such and environment will take a much longer time.

    In short, I do not see your assessment of the trend as accurate.

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