Cloud Computing

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Closing Case - Planning for Rise of Cloud Computing at Microsoft

1.) Cloud computing has become a new trend in the technology world. It is the upcoming stage for the Internet where every computing need can be accessed through a web browser at anytime, anywhere. It is also very economically appealing because the cost is so cheap. Cloud services have the potential to reduce information technology (IT) costs, increase operating efficiencies and create new types of business opportunities. So, what would happen to Microsoft if they do not build on a cloud computing business? First of all they would fall behind in technology trends. The business is said to emerge with rapid growth in the years ahead. Most other companies are heavily investing in cloud computing and in order for Microsoft to compete in the market they must also make moves to invest themselves. Secondly, they would be unnecessarily spending money on desktop software and licensing fees which could put them at risk to lose the opportunity to invest in the cloud later down the road if it finds absolutely necessary. The cloud is available at much cheaper rates and can significantly lower the company’s IT expenses. Microsoft decided they had little choice but to invest in cloud computing because of these reasons and the fact that they now have an opportunity to grow a new and improved business.

2.) According to Microsoft.com, Microsoft is changing its traditional business model to fit the new technologies of cloud computing. Before, they required enterprises to pay an annual licensing fee for the number of copies of an application that they install on their machines. Now they developed a “metered pay-as-you-go” business model for applications that are hosted on the Microsoft service farms. The metering agent will be used to deliver computer resources and software to users based on their particular needs of the moment. To make this happen there is an application-specific integrated circuit that...
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