The move towards cloud services has multiple causes. There are software companies (e.g. Adobe) trying to push software as a service on their customers. However, the customers themselves often are driving this move too.
Say you know of some useful program for your organization that cost $5K. Well, you need to get management approval, IT approval, order equipment to run it and that is a lot of red tape. Or you can find a cloud service for $100 a month that will go on your company credit card and bypass all those approvals. So software providers feel like they have to provide cloud services to be competitive.
What is difficult is the red tape of going through management and IT is important and necessary. Is the system secure? Are backups in place? How is their technical support when something doesn't work? How do we get our data if they shut down? Do they integrate with our user account management? All this gets bypassed. I've seen this happen where different departments all order different cloud services -- often ones that do the same thing -- with no regard for security or the long-term. But because they can slip it under the radar it happens. When an employee is terminated are they removed from all the different cloud-service accounts... maybe. Sometimes IT is the cause too. It is easy to justify signing up for a cloud service that has no big upfront investment than it is to order a system that is good for long term. IT expenses can be high and so there is pressure to go cheap -- at least cheap for the short term.
I don't have the current data for it, but based on circumstantial evidence ($) I guess the bigger pusher of clouds in business is IT departments itself and the reason is money.
Google can "sell" gmail at such low cost that IT departments cannot possibly match. How would a CIO justify a budget of X for email to the CFO or CEO? Email is but one, then there is Office 365, there is Cloud based HR, Cloud based Sales/Marketing, Cloud based ERP...
Clouds is in a way like outsourcing program development. The benefits are immediate and visible but the problems and real cost are hidden and on delayed trigger. If you ask Boeing how much the 737-Max software problem costs, they can't even answer it because the cost is still increasing.
As bad as this is for development, manufacturing is affected too. A factory could be running on some machines requiring some connection to the cloud. IoT is increasing that potential issue is increasing every product cycle - as more and more equipment and manufacturers are jumping into the Cloud+IoT band wagon using services like Microsoft Azure IoT Cloud and others. Just think about all the PLCs in a factory (for lack of a better term) with it's balls in someone else's hand.
Even consumers are affected too.
FDA (US Federal Food and Drug Admin) Cyber Security warning re Medtronic MiniMed Insulin Pumps potential cybersecurity risks issued June, 2019 - In the list of do's and dont's... do not share your insulin pump serial number.
Microsoft will shutdown its HealthVault service come November. What happens to your Blood Pressure Monitor data? While I am sure the cloud service supplier will assist the manufacturers in transition to their next version stuff, but that no doubt costs would be > 0. End users needing such connection would just have to buy the next model and that cost would also be > 0 also.
I am waiting for the News paper headline - John Doe is convicted of murder by hacking into his wife's car and remote driven it into the waterfall.
I am sure Cloud-based sex robot is but just another product cycle away. A user of Sex Bot - The Next Generation who has a certain body parts inexplicably caught within the bot will get an automated call from the ransom-ware: Hey, want to keep it? Click here to send money or you loose that forever.
Clouds/IoT has its use, but if you don't need it, don't add on additional layer of potential show-stopper. I hope, may be in a few years, more and more users will see the light and kill this idea of Cloud and this IoT for everything madness.