Cloud Computing – Cheaper for the Corporation

Silicon Alley Insider has very quickly become one of my top 10 daily reads. Almost everybody on this planet has an opinion about Microsoft courting Yahoo! and Henry Blodget is no different. What’s the most interesting to me is –

The problem is the way Microsoft has always framed the “cloud computing” transition:

  • paid desktop software licenses giving way to
  • free web-based software supported by advertising

A better way of thinking about the “cloud computing” transition, in our opinion, is:

  • paid desktop licenses giving way to
  • paid web-based licenses

Corporate applications will never be supported by advertising, and if Google really wants to unseat Microsoft’s Office monopoly, it will have to build up the same sort of corporate sales and service organization that Microsoft already has. Microsoft should stop trying to go into a business it doesn’t have to be in–advertising-supported consumer media–and concentrate on protecting the core corporate business it already rules–by committing wholeheartedly to Office Live.

Head on over to the SAI blog for the complete post.