Agreed, for a smaller company a lot of the IT stuff could end up being remote, possibly all of it being remote. My own experience with IT is that in almost all cases they would still need a company that could at least provide local IT people, even if all of the servers and storage were in the cloud. I think that's the reason companies like Emphasis and Infosys set up offices here. Many companies like to have people with a local presence, plus some of the IT like network and desktop needs someone local, especially if the company starts to grow.But each of those startups will employ at least a few local people, and lease a bit of office space. Some of the money will go into things like legal council, or engineering consultants which may or may not be local. Ditto with the data side, though many startups may not fully trust the cloud with their brainchild and decide to use a local data center instead.
This is just from from my own experience, but I have seen that going to the cloud 100% isn't feasible for many situations. As companies grow I predict most will be hybrid environments.