Microsoft To Offer 'Cloud Computing'

By Dina Bass and Brian Womack
Bloomberg News
Tuesday, October 28, 2008; Page D02

http://www.washingtonpost.com/wp-dyn/content/article/2008/10/27/AR2008102702779.html?nav=rss_technology

Microsoft unveiled a program called Windows Azure yesterday that stores 
and runs customers' data and programs in its computer-server farms, 
stepping up competition in "cloud computing" with Amazon.com and Google.

Windows Azure makes it easier and cheaper for clients to manage their 
programs, Microsoft chief software architect Ray Ozzie said at a 
conference for developers in Los Angeles.

Microsoft is overhauling the way it sells software as rivals offer more 
ways for companies to store their data on the Internet. That approach 
means clients don't have to worry about the cost and logistics of 
constantly expanding their own data centers.

While Microsoft has the resources to run data centers, its expertise 
wasn't "packaged in a form where it could help you," Ozzie told developers.

"They have to do this," said Rob Helm, an analyst at Directions on 
Microsoft, a Kirkland, Wash.-based research firm. "Amazon and -- to a 
lesser degree, Salesforce.com -- have already gotten their models going. 
There's a real risk they might completely bypass Microsoft."

Microsoft didn't disclose a release date or pricing for Azure. Ozzie 
said the price will be competitive and the release date depends on 
feedback from developers testing the software. The company released a 
free preview of Azure yesterday.

Spending on software delivered over the Internet, known as cloud 
computing, may almost triple to $42 billion by 2012, according to 
Framingham, Mass., research firm IDC.
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