Thursday, January 8, 2015

Microsoft Will Win The Cloud Wars?

According to the Motley Fool, Microsoft will win the Cloud Wars.

Their premise is as follows:

Because Microsoft's figured out the real opportunity to generate cloud revenues isn't hosting, that's already a commoditized business. Delivering its suite of software products via the cloud, and continuing to add solutions and delivery channels via strategic partnerships is where Microsoft CEO Satya Nadella is focusing his efforts, just as he should.

It's a good point.  Amazon and Google have been so quick to slash prices, you wonder how much they truly think their customers value their service.  You can make the argument that Microsoft is a dinosaur and all the momentum has been with Google and Amazon, but Microsoft has played this game for a lot longer than either one of these companies.

Office 365 is a winner.  Microsoft still owns the enterprise back-end infrastructure and a huge percentage of the end point clients.  If they can continue to provide value to their clients as well as security, manageability, and productivity, their clients will remain loyal.  And these clients are used to paying big bucks for their licensing fees.  They're not going to be quick to completely jump to away from them and if anything, they'll probably start to swing back towards them if Windows 10 is more Windows 7 than Windows Vista.

I wouldn't bet against Microsoft.  

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