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  Why Microsoft really, really, hates the cloud
Time: 10:57 EST/15:57 GMT | News Source: ZDNet | Posted By: Andi Stabryla

Guest post Louis Naugès has been a proponent of cloud computing and office automation for almost two decades and is co-founder of Revevol, the first authorized Google Apps reseller and one of the most successful. Based in Paris, he blogs for ZDNet France and has translated an abridged version of this recent post for publication as a guest post here. Read on for a controversial and eclectically illustrated perspective of why, for Microsoft, it may be more a case of ‘all over’ than ‘all-in‘ when it comes to the cloud.

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#1 By 8556 (173.27.242.53) at 3/23/2010 12:36:57 PM
While the article predicts Microsoft shrinkage by 2015, page three has a terrible contradiction that shows the true bias of the author. There in he writes that people will refuse to pay a discounted price of $37 for a license of Office 2014, but will be eager to pay $4 per month for cloud access to non-Microsoft office apps. Gosh! Which would you want to pay: $37 for an unrestricted single use license of Microsoft Office (discounted so low because no one wants to buy it), or $48 per year for slower cloud apps that do not have a 100% guaranteed uptime?

#2 By 7754 (206.169.247.2) at 3/23/2010 4:03:38 PM
With IE9 embracing HTML 5 and SVG (and turbo-charging them with GPU goodness), the elephant in the room seems to me to be a Microsoft preparing for much richer web-/cloud-based apps than we're seeing today.

#3 By 20505 (216.102.144.11) at 3/23/2010 5:12:41 PM
As I understand "cloud computing" there are essentially two ways to make money (and lord knows how Google and MS like to make money) and to pay for the large data centers necessary for this scheme to work. A subscription model or an advertising model.

A subscription model can make sense under certain scenarios, that is to say, when the user wants to essentially lease the software and use it from several different machines in various locations. This assumes that each of these computers have good reliable high speed data links. The problem is that many chafe at the notion of procuring software in a "cell phone" payment formula with endless charges and special fees. I don't see this as becoming a dominant way to use say a spreadsheet or a word processor. There are indeed very good cheap or free programs that do this in addition to MS's offering.

The other and more attractive model is an advertising model, where you get the program for free through the browser but need to watch an endless stream of ads while browsing. The pervasiveness of Adblock and the like suggest that many will not be so happy to be blinded with flashing ads every time they open their word processor. In addition, anyone with any degree of sophistication will realize that their data will be mined for commercial purposes and sold to the highest bidder.

Bottom line, don't short MS just yet. I think there will be a future for locally based software for the foreseeable future.

#4 By 9589 (75.183.113.235) at 3/23/2010 10:46:49 PM
Oh my god! It's the year of the . . . dare I say it . . . THE CLOUD @#!@#! lol

Wait a minute, what happen to the the year of Linux???

Plonk . . .

#5 By 12071 (124.171.247.184) at 3/24/2010 6:22:40 AM
The cloud arena is going to be interesting to watch over the next 24 months. Currently we have Google (App Engine), Amazon (EC2) and Microsoft (Azure in April) all offering roughly the same conceptual idea of what a cloud application is and how it should work. Amazon's offering is basically go write it all yourself, we'll host it for you. Google has a much more restrictive model however the one thing they do guarantee you is scalability - you don't have to code your application specifically for the scale you require, it's done automatically for you. And Microsoft is offering to host your app in a VM and provides quite a rich set of development tools to help you out. There's pros and cons for all 3 and it'll be interesting to see how they adapt to one another as marketshare pics up. The other big player out there is Salesforce with their force.com cloud offering which looks like it's build to appease management more so than developers by offering the ability to build applications using pre-build blocks and configurations. So it's going to be interesting.

#1 "true bias of the author."
He never said that the $4/month was for non-MS office apps, he said that the "reference cost, $4 ... pioneered by Google Apps". He even stated that MS will have their own $4 offering, i.e. "Microsoft will be one of the main vendors with a $4/month solution." What bias?

"$48 per year for slower cloud apps that do not have a 100% guaranteed uptime"
$37 gives you MS Office 2014 that you can use on one single pc... $48 will give you access to MS Office Cloud which you can access from any of your pc's... you mobile phone... heck even your iPad '14 Edition ;) hehe. I dislike subscription models but if the Cloud apps are on par with the Desktop equivalents then it's hard to argue against!

#3 "I think there will be a future for locally based software for the foreseeable future."
Quite possibly... I hope not though... since the 90's when Sun was pushing Network PC's I've waited for the day when everything i have can be accessed from anywhere (securely of course). The technology in the 90's wasn't sufficient to make that dream a reality but these days I think we've got everything we need!

#4 "Wait a minute, what happen to the the year of Linux???"
You might be lucky with your prediction - the majority of the players may run their cloud offerings on Linux ;)

#6 By 20505 (216.102.144.11) at 3/24/2010 2:53:46 PM
Chris,

So you are willing to pay a subscription for access to the cloud, pay another fee for a continuous high speed data link (presumably courtesy of ATT or Verizon who will charge on a pay per gig of data access) and not worry about trusting the security of your data to Google or MS (or Amazon for that matter)?

I applaud you. Tell me how it works out.


#7 By 12071 (203.210.68.145) at 3/24/2010 6:35:43 PM
#6 "So you are willing to pay a subscription for access to the cloud"
As I said - I dislike subscription models full stop but it would be hard to argue the value of a desktop only version of software A vs. the cloud version of that same software.

"trusting the security of your data to Google or MS"
There already is some, if not a substantial amount, of trust that you give these companies. If you run Windows, you trust that whatever software is running on your pc isn't submitting your private information to Microsoft whether it be through malicious software scans or just a simple inventory check when logging into Windows Update. Same for Google if you use their mail or office products. So it's not quite as black and white as some make it out to be - i.e. if it on your pc it's safe but if it's on the cloud then OMG Google/MS/Amazon have all your data! As I attempted to imply, it's going to be interesting how this moves forward - there's plenty of ways of storing your data in the cloud and still maintaining security - e.g. encrypting all your data files. No cloud offering will ever be successful, enterprise wise, unless they can guarantee that at a bare minimum your competitors cannot access your data and most likely that no-one, not even they can access your data.

"Tell me how it works out."
Will do :)

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