Microsoft says businesses are switching to cloud computing faster than it foresaw. A November 9th article in the Wall Street Journal quoted Stephen Elop, who heads Microsoft’s business division (Office tools, included), saying, “People are embracing cloud computing faster than we anticipated.”
Microsoft wants a bigger share of the pie of the growing cloud services market. But its challenge is to prosper in the cloud without dampening profitability of its products, most of which are still hosted and used on PCs or internal corporate servers.
So, Microsoft is ramping up competition, for example, hosting cloud versions of traditional PC- and server-based services like email and Office for corporations. It has even cut the price of its Exchange Online email services. Meanwhile, competitors like Google, with its online productivity applications, are winning big contracts – such as its win of 30,000 email accounts for employees of the City of Los Angeles (see more at L.A. to Adopt Cloud).
North American and European customers are slightly more enthusiastic about cloud computing than the company’s customers in Asia-Pacific, Elop said in the article, largely because these regions tend to have better-developed technology infrastructure.