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Companies from the tech, media and telecommunication sector will continue to be the major driving force, KPMG forecast.

Competition will also characterize the world of cloud services in 2012 as the strategic focus shifts from building infrastructure to the creation of application platforms and ecosystems. Here the battle for enterprise platform dominance is just getting underway with established players like IBM, Microsoft, and Oracle facing serious challenges from Amazon, Google, Salesforce.com, and VMware. As evidence of this challenge, IDC expects Amazon Web Services to exceed billion in cloud services business in 2012 with Google’s Enterprise business to follow within 18 months. IDC also expects a merger and acquisition (M&A) feeding frenzy as these companies seek to gain a competitive edge. Look for Microsoft to buy a content/media cloud, like Netflix, to provide a marketplace for its apps and content. Other prime targets for acquisition include Cloud Application/SaaS companies, like Workday, NetSuite, and Taleo.

Companies identified the impact of the current geopolitical landscape on China-UK relations as the biggest challenge in conducting business in the UK, followed by cultural differences between the two countries.

Companies identified the impact of the current geopolitical landscape on China-UK relations as the biggest challenge in conducting business in the UK, followed by cultural differences between the two countries.