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 Channel Futures

Virtualization


Analysis: Microsoft’s Ballmer Explains the Cloud

  • Written by Matthew Weinberger 1
  • March 5, 2010

In a speech to the student body University of Washington, Microsoft CEO Steve Ballmer elucidated the promises and perils of the cloud, shedding some light on Microsoft’s cloud strategy.  Gizmodo’s got the blow-by-blow – here’s a recap and our take.

Ballmer opened the talk by reminding the audience that the cloud is a $3.3 trillion industry, and that Microsoft (and the rest of the industry besides) is banking its future on it. He then went on to break his views in the cloud down to five key principles.

Cloud computing according to Ballmer:

  1. “The Cloud Creates Opportunities and Responsibilities.” Basically, what he means is that you no longer need to come from a huge developer to get your work in the hands of the masses, with the caveat that the developers remember the cloud is supposed to give users more control, and provide the appropriate privacy considerations.
  2. “The Cloud Learns and Helps You Learn, Decide, and Take Action.” What Microsoft is trying to do, Ballmer says, is teach the cloud how to pick out information more intelligently, either on its own or in collaboration with users. As an example, he pointed to Bing Maps‘ newly-live “explore” feature.
  3. “Cloud Enhances Social and Professional Interactions.” Ballmer thinks that social cloud innovation will go far beyond Facebook and LinkedIn, towards an ever-enhanced collaboration experience.
  4. “The Cloud Wants Smarter Devices.” As Gizmodo (and every other observer) has noted, this is a huge break from Google’s thinking, which holds that the device is just a dumb terminal to access the cloud. Ballmer’s logic seems to be that processing power is cheaper than bandwidth, so it’s more cost-efficient to have the computing done on the consumer’s end.
  5. “The Cloud Drives Server Advances That Drive the Cloud.” Microsoft has a huge server business. The bigger Microsoft’s cloud gets, the more servers they have to put in. The more servers Microsoft puts in, the bigger and more robust the services they can offer.

The VAR Guy’s take: Microsoft’s approach to cloud computing is unsurprising, given their obvious strong roots in the traditional PC. What this means is that in one corner, we have Microsoft, which is banking that the desktop will never go out of style, and in the other, we have Google, which says that it already has.

Personally, I think Microsoft’s position reeks of old thinking. But I also think that the market can support both Windows Azure and Windows Server 2008 — for a while, at least.

Tags: Agents Cloud Service Providers MSPs VARs/SIs Cloud Virtualization

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5 comments

  1. Avatar Simplicius March 6, 2010 @ 4:12 am
    Reply

    “I think Microsoft’s position reeks of old thinking”

    and platitudes. Old, stale platitudes.

  2. Avatar Frank Daley March 6, 2010 @ 4:57 am
    Reply

    Yet again highlights that Microsoft is locked in a downward spiral since its two biggest profit centers are doomed to be competing in marketplaces in which Microsoft may not even be the #1 player.

  3. Avatar The VAR Guy March 6, 2010 @ 4:12 pm
    Reply

    Simplicius, Frank: Microsoft doomed? Plenty of software companies would envy Microsoft’s position. Challenging times… but hardly doom and gloom…
    -TVG

  4. Avatar Frank Daley March 6, 2010 @ 11:26 pm
    Reply

    @TVG: No, Microsoft is not doomed, however as I said its two biggest profit centers are already in a downward spiral that will lead to dramatically lower profits. Hence Microsoft’s long-term levels of ultra high margins are doomed.

  5. Avatar The VAR Guy March 9, 2010 @ 2:57 pm
    Reply

    Frank: Thanks for comin’ on back and sharing your perspectives a bit more fully. The VAR Guy can’t argue with you. Microsoft’s core cash cows (Windows, Office) are under attack. Curious to see if Microsoft can develop new and different cash cows… and keeping and eye on Windows Azure cloud in particular.
    -TVG

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