27 October 2008

We reported back in April on the release of Microsoft's Live Mesh - an online product that would allow users to synchronise files and access their data from a number of devices.  Registered users would also be able to file-share. Analysts reported on how this was a change in strategy for Microsoft - a move into “cloud computing” and a squaring up to Amazon and Google for the online office application market. 

This week, Microsoft launched the prototype version of Windows Azure or “Windows for the cloud”, a new web-based operating system allowing software developers to build applications and websites that will sit on Microsoft's global network of data centres. Software developers will not be prohibited by huge costs in investing in their own data centres.  Once Windows Azure is officially launched, third-party developers will be charged for their data needs, but during the trial period, Microsoft has invited developers to experiment and test the platform free of charge and Microsoft hope that enhancements will be fed into the finished product.

Microsoft's chief software architect, Ray Ozzie told software developers at the annual Professional Developer's Conference that “it's a transformation of our software.  It's a transformation of our strategy.”  Microsoft has invested billions into developing data centres that will accommodate the massive demand for computer power.  Developers will be able run applications over the Internet at a cost which reflects the amount of computer power they need - and the amount of traffic their applications generate.  Consumers will have the option to hold more of their data in the “cloud” which can be accessed at any time, from mobile phones, home PCs and work desktops.  As the Internet becomes faster and more reliable, the trend for “cloud computing” will impact businesses and individuals alike.

Some critics have said that Microsoft has been slow on the uptake and Amazon and Google has already established platforms for developers to build online applications.  Microsoft argued at the launch that Windows Azure is “an industry-leading move” and competitors' offerings will fall behind, as Microsoft's offering becomes the platform of choice. 

Google remains unfazed by the new service and the potential threat to its service Google Apps.  Sam Schillace, Google's cloud computing developer was quoted on the BBC website as saying: “Competition, even stiff competition from Microsoft doesn't bother us because it will either make the Internet as a whole better or it will be irrelevant in making it better.”

Ray Ozzie was keen to acknowledge Amazon's contribution (Amazon EC2) to the swing towards online applications and  would like to “tip his hat off” to the CEO, Jeff Bezos and the company for “their innovation and the fact that across the industry, all of us are going to be standing on their shoulders as they have established a base level design pattern, architectural models and business models that we'll all learn from.”

Microsoft aims to position itself as both a provider of software and services - their traditional (and profitable) off-line products will co-exist with the new platform.  As Ray Ozzie stated:  “We believe deeply in on-premises software and we believe deeply in this new world of software in the cloud.”

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