The cloud is a sideshow. It's an effect of the smartphone, not the cause.
Mainframes were displaced by minicomputers, which were displaced by micro (I.E. "personal") computers, which are being replaced by smartphones. Each time the previous technology got kicked up into the server space, and this time around they're calling that "the cloud". It's just as big a deal as a vax salesman telling you how great it would be to have a department server back in the 1980's.
Making a smartphone become self hosting is a question of software, not hardware. USB docking stations could give you two full sized monitors, keyboard, mouse, network, extra disk space, and speakers (all while charging the phone) back under USB 2, let alone USB 3. Just one example:
Fighting for a position on "the cloud" is like fighting for a position on the mainframe. It's yesterday's news repackaged in anthology format.
(And no, the Zune Tablet's keyboard isn't interesting. Successful tablets are big phones, not small PCs. Microsoft reinvented the Microvax. The PC replaced the VT100, but it didn't do so running VMS. Docking your phone to full PC display peripherals is something it has to be able to do in _addition_ to being a good phone, not instead of.)