How does cloud philosophy make Microsoft's foray into cloud computing a big area?

We have in-depth analysis of the concept of cloud computing and theory, just today small series saw a message, and do not say that the source of the message, the single said cloud computing so that most enterprises are popular, some monopoly industry giants will also look envious envy hate it.

Well, to get to the point, December 20 news, according to foreign media reports, Microsoft is in the field of cloud computing, to hear the news, what do you think? Some people may be surprised, some people may think it is sooner or later. But on second thought, which users will Microsoft cloud computing face? The biggest customer source or enterprise, after the enterprise successfully become a paid user, can use Microsoft's cloud computing to do a lot of things, such as the management of the company's spreadsheets and Web sites. As for individual users, they will be given the internet to watch TV shows and edit photos.

This is good news for businesses and individual users, but because cloud computing software is stored and run at Microsoft's data center, it will lead to a whole cost plus other costs that may not meet the profit forecasts for the 2012 fiscal year.

From here we can see that although cloud computing is epoch-making, but not cloud computing will certainly be profitable, but Microsoft is not afraid, because their chief executive Ballmer in recent years to invest in new business decisions, such as the game host Xbox Add new content, 8.5 billion dollars to buy internet phone company Skype and so on.

Rising costs

Now that more and more customers choose to use cloud computing services, the pressure on Microsoft's rising costs is expected to continue beyond this year, Microsoft provides cloud computing services, must use its own server support software, and through the Internet to provide services, so that the cost of customers to store and run the software to Microsoft's head.

Microsoft traditionally sells packaged software, and once developed, the cost of manufacturing and selling is low. But in order to attract more customers to use its cloud computing services, Microsoft must bear the cost of running the data center. These costs include power supply, cooling, property, and maintenance of server costs. Mark Modler, an American investment firm Sanfordbernstein analyst, estimates that the cost of cloud computing accounts for 15% to 25% of Microsoft's revenues. ' It's about 10% higher than the standard suite software, ' he said.

But Microsoft declined to comment.

Xbox content Cost

Sherlund, an analyst at Nomura Securities, points out that Microsoft's product cycle shows that its Windows software and Office software business will experience a slow growth year. As customers wait for the launch of a new generation of Windows operating systems, the two businesses will grow more slowly in fiscal year 2012. Sherlund expects Microsoft to launch a new generation of Windows operating systems next October and will likely launch office software for touch-screen products later.

At the same time, Microsoft's business costs are rising. Microsoft Xbox Game sales are booming, but their production costs are higher than software, and they are paying higher licensing fees for the content of Xbox services.

In addition, the acquisition of Skype increased the demand for consultancy services in its server business, and the cost of Microsoft's collaboration with Yahoo in Search, which led to a sharp rise in Microsoft's costs. (Source: HC Smart Home Network author: Wongbo)

(Responsible editor: The good of the Legacy)