Have We Crossed The Chasm Yet?

Looking at the industry and Cloud, I often think about the book "The Innovator's Dilemma" by Clayton Christensen.

Innovative technology or solutions are usually treated by the industry with the progression of rejection, toleration, adoption, dependence.

Compare the time when the the 3.5" inch hard drive replaced the 5 1/4" inch hard drive. Initially they were rejected because no one knew what to use this smaller drive for. Their had less storage capacity and also cost more. 

Credit: IBM

Some server manufacturers started to put the smaller drive into their standard server chassis. This the phase of toleration. But since the chassis size did not change, the free space around the smaller drives create no value.

Then a new application appeared on the scene: computers that you could carry! There is a real benefit in using smaller sized hard disk for computers that need to have the size and weight to be accepted as carry-on accessories. 
This led to mass volume the adoption of the 3.5' inch form factor for drives. If you look into server and blade chassis today, you will see the also have changed over time as well and depend now on the smaller drives - since there is no space anymore for the 5 1/4' inch.

Where are we with Cloud? True, there are still the rejectors among the software vendors that make it hard for technical or non-technical reasons to run in a Cloud. But most applications these days tolerate to run on a Cloud.
More than that, 72% of developers report that cloud-based services or APIs are part of the applications they are designing. Example of these are the SoftLayer Cloud APIs and the BlueMix services. This is a big step toward dependence. An application that essentially relies on such services and APIs will run best and maybe exclusively on Cloud.

No question, Cloud is here to stay. But what do you think: will it completely replace dedicated systems?