The Lighter Side Of The Cloud – The Dinosaur
The Lighter Side Of The Cloud – Clandestine
The Lighter Side Of The Cloud – iPatch

Is Microsoft Taking A Risk By Putting All Its Eggs In The Cloud Computing Basket?

Is Microsoft Taking A Risk By Putting All Its Eggs In The Cloud Computing Basket?

“A ship is safe in harbor, but that’s not what ships are for.”
– William Shedd (1820-1894), American Presbyterian Theologian.

Risk-taking is a requirement for business; unless, a business takes risks, it cannot sustain its competitive advantage, and without a competitive advantage, it will soon fall by the wayside. History is witness to several companies that were once stalwarts in their field but are now limping, or have dropped out of the race completely.

Therefore, Microsoft’s decision to invest in cloud computing, in spite of its dominant presence on computers across the world through its Windows operating system and Office suite, didn’t come as a surprise. In time, its Azure platform became one of the best products in the cloud computing space. However, Microsoft’s recent decision has certainly raised eyebrows.

Last week, Microsoft president Jean-Phillipe Courtois announced that the company will be spending 90% of its research budget on improving cloud computing technologies. Since Microsoft’s annual R&D budget this year is $9.6 billion, this investment translates to a massive $8.6 billion.

While this is certainly a shot in the arm for cloud computing as a whole, I believe that Microsoft may be putting all its proverbial eggs in one basket. While I am all for the massive potential of cloud computing, as my numerous supportive articles will attest, I have always presented a cautionary stance, as with my observations on IBM’s optimistic projections (See: IBM expects to generate $7 billion in cloud computing revenues by 2015: CEO ).

Make no mistake; I believe that cloud computing is the technology of and for the future. But allocating 90% of the research budget on an emerging technology without paying adequate attention to established products in which it has dominance is too big a risk in my book. Especially since that dominance is under threat, with the rise of Firefox and Chrome against the Microsoft Internet Explorer, and the growing popularity of Linux versus Microsoft Windows.

I believe there may be a sense of hubris in the way Microsoft is neglecting its established revenue lines. While its Windows still powers more than 80% of the computers in the world, there are several complaints against the operating system. In fact, many would argue that a lot of that $9.6 billion R&D should have been allocated to making the next edition of Windows bug-free, resource-light and malware-resistant.

Now, Microsoft may have its own reasons for this decision. It did commission a survey that showed the overwhelming rise of cloud computing in the next few years (See: Microsoft Study Says 40% of SMBs to Go on Cloud within 3 Years), and HP’s recent entry in the market may also have given it cause (See: HP Declares Ambitious Plans in Cloud Computing Space).

Moreover, as I had pointed out earlier, cloud computing is not the panacea to all IT ills, and hence, not all companies will move to the cloud en masse (See: How to Avoid a Cloud Computing Gold Rush ). Combine this with recent well-publicized failures and data breaches and the problem multiplies (See: What Effect Will the Epsilon Data Theft have on Cloud Computing? and Gmail Outage – Is Cloud Computing To Blame?).

In conclusion, I believe Microsoft is taking on a big risk here; however, big risks sometimes do translate into bigger profits. What’s in store for Microsoft, only time will tell.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Support

Recent

Beyond Gaming: Three Practical Applications For Oculus Rift

Beyond Gaming: Three Practical Applications For Oculus Rift

Three Practical Applications For Oculus Rift  Since the announcement of the Oculus Rift in 2012 gamers and game developers alike have been frenzied trying to both get their hands on the unit or build their own proprietary VR machine. The VR gold rush has since lead to the announcement of Project Morpheus from Sony and…

The Lighter Side Of The Cloud – Due Diligence

The Lighter Side Of The Cloud – Due Diligence

By David Fletcher Please support our comics by sharing, licensing or visiting our cloud sponsors (Below). Your support goes a long way in allowing us to continue to produce our lighthearted comics each week.   About Latest Posts souryaSourya Biswas is a former risk analyst who has worked with several financial organizations of international repute,…

Popular

Cloud-Based VOIP – 4 Alternatives To Skype

Cloud-Based VOIP – 4 Alternatives To Skype

Cloud-Based VOIP – 4 Alternatives To Skype Skype is the most popular cloud-based VOIP service. Since being bought out by Microsoft for $8.5 billion in 2011 the company has grown to more than 300 million users and now accounts for 34% of all international calls. Some people don’t want to use Skype though. Reports of…

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility A CIO friend of mine once told me that a hybrid cloud model enables him to “own the base, rent the spike” when it comes to unplanned events. Let’s face it – maintaining unused infrastructure for rare or random IT events is expensive and unnecessary in a cloud…

Cloud Infographic – The Future (IoT)

Cloud Infographic – The Future (IoT)

The Future (IoT) By the year 2020, it is being predicted that 40 to 80 billion connected devices will be in use. The Internet of Things or IoT will transform your business and home in many truly unbelievable ways. The types of products and services that we can expect to see in the next decade…

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most Cloud computing is rapidly revolutionizing the way we do business. Instead of being a blurry buzzword, it has become a facet of everyday life. Most people may not quite understand how the cloud works, but electricity is quite difficult to fathom as well. Anyway, regardless of…

Cloud Migration – 10 ‘Do it Right’ Tips

Cloud Migration – 10 ‘Do it Right’ Tips

Cloud Migration – 10 ‘Do it Right’ Tips Businesses continue to adopt the cloud at break neck speed. Inherent benefits like lower operational costs, no infrastructure overheads, and quick access to better technology make cloud a very attractive proposition for businesses, especially start-ups and SMEs. However moving from legacy to the cloud environment has its…

Sponsored Posts

The Value of Hybrid Cloud

The Value of Hybrid Cloud

The Value of Hybrid Cloud As the “cloud” continues to exert its dominance as the IT technology of the day, the question for many companies focuses on what type of cloud to choose: public, private, or a combination of the two, known as hybrid. Each has its advantages. Private cloud – owned and maintained by…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Branded Content Programs

Advertising