Cloud computing creates new problem for Microsoft
Microsoft’s current thrust in the cloud computing sector is believed to have helped Microsoft compete better with market leaders Apple and Google. However, it is speculated that a dipping profit margin will act as a deterrent and restrict this expansion. Microsoft’s cloud computing services lets corporates manage spread sheets and websites stored on Microsoft’s server in return for a subscription payment. Recently expanding its offerings, the services now allow customers to edit photos online and stream TV shows.
Though highly customer friendly, the cost of maintaining the software in its own data centre and server costs along with other expenses have resulted in the company missing its profits estimate for 2012, warns Goldman Sachs’ analysts Heather Bellini. Jason Maynard from Wells Fargo Securities said that Microsoft may not be able to produce outsized margins like before. This change in the profit scenarios arises from CEO Steve Ballmer’s decision to capitalize new investments like increasing Xbox features and most recently, acquiring Skype for over $8 billion…


Talking about the social enterprise is changing the entire focus of cloud computing from just reorganizing IT to revolutionizing businesses, according to Peter Coffee, vice president and head of platform research at Salesforce.com.