The Cloud

You've heard about it. You've read about it.
Maybe you've worked with it. Or only had a short test drive with it.

What am I talking about? The cloud.

Or to be more precise: Microsoft's offering for the cloud. What's in?

Over at ZDNet, they do not believe in Microsoft as a serious cloud contender. A very critical voice is heard on Microsoft's cloud offering in this article, titled 'Why Microsoft really, really, hates the cloud'.
Summing it up: In 5 years Microsoft's operating income will drop by 75 %. Because it cannot adapt to the changing IT environment.

My opinion, for what it is worth: A bit over simplified reasoning in this article.

Will we see a move to cloud based applications: Absolutely. Your communications will be without doubt cloud based. Email only being one of them.
Your basic word processing, spreadsheet functions will be cloud based. I can dig that. Image, audio and video management, sure.
But your business critical applications like an ERP system? I don't think so. Partially maybe.
Small companies (-25 employees) will be interested. But anything above that?

I also do not see a reason on why Microsoft cannot adapt and change it's income pattern (that's without doubt needed). But are Cisco or IBM better positioned then Microsoft in this area then?

Microsoft is not postponing the arrival of Cloud Computing as stated in the article at ZDNet. It's just gearing up things and when and where there is money to be made with the Cloud, Microsoft will be around.
Remember the spread sheet. Lotus 1-2-3 was once number one. And the word processor, with WordPerfect. Or the internet browser.
Maybe this time around Microsoft's rival isn't another software company.