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Microsoft Futures

Microsoft throws its weight behind the cloud

Dan Farber CNET News

Published: 04 Nov 2008 11:37 GMT

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This week Microsoft gave evidence that it will continue to be a major force for at least the next decade. The company outlined its products and strategies that more fully embrace the 'cloud', such as the Azure set of cloud services; web-based, lighter-weight versions of Microsoft Office applications; and the latest iteration of the Live Mesh middleware.

Google may have won the search war, but Microsoft isn't about to cede the global cloud to the search engine giant.

As in past epochs in its 33-year history, Microsoft ties its success to the developer community, having an army of loyal, or at least well or modestly compensated, software warriors. The Microsoft mantra is: "Build a platform and an ecosystem of developers, partners, fans and people willing to spend their money will follow." A compelling platform and the potential to reach a large audience of buyers, which Microsoft can deliver, attract the developers, who build the applications and services that attract consumers and business users.

Microsoft also now understands that its platform must span every kind of device — PC, notebook, smartphone, car, home and so on — and offline scenarios. Microsoft missed the web-search revolution, but it's not going to miss out on the much bigger revolution — the move to the cloud over the next two decades.

Google is building a competing ecosystem from the ground up with similar characteristics and a desire to attract millions of developers. Amazon is pushing its elastic computer cloud, and Rackspace, EMC, IBM and many other companies are trying to get a piece of the action. Most the cloud companies are focused on hosting services, but the biggest piece will be platforms-as-a-service with developers creating and running their applications for a cloud operating system.

An early example of this trend is Salesforce.com's proprietary Force.com platform. Sun, the company that coined the phrase: "The network is the computer", has all the pieces to construct a planetary cloud, but seems to be missing from the discussion.

Openness is a major issue as the global cloud materialises. Businesses don't want to be locked into a particular cloud, and also want various clouds and services to interoperate via standards. Speaking at the Professional Developers Conference last week, Microsoft's chief software architect Ray Ozzie said the foundation level in the operating-system cloud would run in Microsoft's datacentre, but SQL services, .NET and Live services can be mixed and matched by developers inside and outside of the company's datacentres. The Azure cloud is also cross-platform, but the various clouds will extract a toll and, by nature, it won't be simple to move applications using foundation services from one cloud to another.

Microsoft's cloud-computing efforts have had a slow start compared to competitors, and it's on the scale of a Manhattan Project for Windows. Azure is in pre-beta, and who knows how it will turn out, or whether consumers and companies will adopt it with enough volume to keep Microsoft's business model and market share intact? But there is no turning back, and Microsoft has finally legitimised Office in the cloud.

Ray Ozzie has a track record of slowly but surely getting things done, and Microsoft is famously persistent and cash rich. But building a platform or internet operating system at planetary scale supporting billions of users and trillions of transactions per day, and having Google as a primary competitor, will be a major test of Microsoft's brain power and resolve. Don't be surprised to find a recharged Bill Gates parachuting into the fray as Azure evolves and the cloud war for developers escalates.

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