Friday, November 07, 2008

How Network Effects Are Likely To Power The Cloud « Transitioning From The Enterprise To Web 2.0

Some timely and insightful analysis from George Gilbert; his summary paragraph:

Windows Azure has all the economic characteristics of a private cloud - masking the infrastructure, managing the application services - but with the margin-depressing overhead of tightly-integrated data centers. It will clearly have higher-level services like SQL Services, Exchange, and .NET, but it will be easy to integrate premise-based software as well as third-party services such as Salesforce.com’s Force.com or Google Adwords.  In other words, if Microsoft delivers on its promise, it will be an anchor platform at a higher value, higher margin layer than Amazon, but with bridges to other services.  Considering how it appears to build on Microsoft’s on-premise software tools and interfaces, it appears likely to have a leading market share.

How Network Effects Are Likely To Power The Cloud « Transitioning From The Enterprise To Web 2.0

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