Microsoft Case Analysis

1. If Microsoft does not build a cloud computing business what might happen to the company over the next decade? Why did the company decide that it had a little choice but to invest in cloud computing

Ans: As mentioned in the case ‘cloud computing’ emerged as a new computing paradigm which was not available a Microsoft at the beginning. There would be no. of significant effect if Microsoft does not build a cloud computing business. Cloud computing was a latest application that many of the company has adopted already and Microsoft would go out of trend if cloud was not build, as a result Microsoft might lose its existing customer loyalty as some customers likes to follow trend. Secondly, apart from trend the software Microsoft had i.e. windows and office needs to be resided on individual’s own machine but through ‘cloud’ an individual using a laptop that is running on a non windows operating system such as Apple’s OS X, Google’s Android or Linux could conceivably run applications hosted on server farms through their web browser. This means using cloud provide service of ease and mobility that might lead them to lose this group of customer as well. Microsoft would also need to bear the high cost of running windows and office these need to purchase own servers and maintain them which increases cost and mentioned in the case that cloud computing enables to reduce cost which on the other hand can be passed to customers in the form of lower prices that Microsoft might not be able avail due to absence of cloud which means the high cost would tend to raise their cost which might reduce their profit significantly over the next decade.

The company decided that it had a little choice but to invest in cloud computing was because cloud computing became a threat to their existing business and Google apps represents a direct threat to Microsoft. It was important for Microsoft to hold their existing customers so that it does not result in lost market share and customer...