By the end of 2012, Wall Street will dramatically modify their valuation models of software and technology services companies to overweight the importance of cloud delivery. Companies that can demonstrate significant growth in cloud services will be rewarded; those that fail to embrace the cloud will be punished — in the wallet, where it hurts. And since Wall Street analysts don’t slice and dice “the cloud” the way those in the trenches do, all kinds of public and private cloud services will be bundled in their valuation models. This trend will solidify the standing of cloud delivery services as the primary driver of corporate valuation models within and beyond the US, valuation models that enable increased stock prices and therefore greater investment in cloud services to their clients. Cloud delivery-driven valuation models will define the value of technology companies for at least five years.