Microsoft: Losing Margins to the Cloud?

We beg to differ with Microsoft's vision of how cloud services will play out

Jun. 15, 2009 03:00 PM

A recent SmartMoney article tells us that Microsoft's chief software architect is concerned that cloud services could undermine the company's margins over the long term. He also said that there was probably room only for a few players in the cloud.

We beg to differ. IT Service Providers already have the core competencies required to deliver on the promise of cloud computing. And profit margins are present in cloud storage. In the recent meetings on Cloud Storage at the SNIA Cloud Storage Technical Work Group, one of the specific topics was cloud interoperability, a discussion that assumes multiple clouds by multiple service providers.

Read more on this subject on my blog.

Published Jun. 15, 2009— Reads 7,371
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
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▪ The Business of Cloud Computing: Ozzie on Cloud Margins

▪ Ray Ozzie: Who Can Keep Microsoft From "Growing Old Inside"?

About Steve Lesem
Steve Lesem is President/CEO of Mezeo Software. Previously, He was Senior Vice President and Chief Marketing Officer of the managed hosting provider VeriCenter. He has also served in leadership positions at SafeNet, BMC Software and IBM. Steve holds a Bachelor of Science from the University of Texas at Austin. He is the primary author of the Cloud Storage Strategy Blog (www.cloudstoragestrategy.com), which frequently sees posts picked up by publications in the IT services and Web hosting spaces.

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