Vendors "are seeing the cloud as the opportunity for the future and are looking at revenue models and thinking of offering a subscription-based service to reduce clients' CAPEX," according to Jagdish Rebello, senior manager for cloud and computer electronics at IHS. "Microsoft's doing that, Oracle's trying to do that, Google's doing that, and Salesforce.com is seeing explosive growth."

Google has dropped its cloud computing prices and other vendors are expected to follow suit, but the lower pricing may not be the key lure for attracting enterprises to the cloud.