Ray Ozzie Asserts Microsoft's Position In The Cloud

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Microsoft’s Chief Software Architect Ray Ozzie made some interesting predictions on the future of cloud computing at J.P. Morgan’s Technology, Media and Telecom Conference in Boston today (see below for the full transcript). Ozzie says that while the IT community is in the very early stages of cloud computing innovations, the future for companies’ data hosting will be in the mixture of cloud computing and on-premise data centers.

“But the high level pattern, which really I think we would all agree on, is that at some point in time every major enterprise, every company, every ISV is going to have some blend of software that runs on-premises and some that runs in the cloud, and everyone wants tools that they can use to in essence deploy some apps to part of their organization that might be in the cloud, another part of their organization that might be on-premises, to do that on an application by application or region by region by region or program by program basis.”

Ozzie continues that Microsoft is in an optimal position to be the provider of both cloud computing services and on-premise data solutions, especially considering the company’s release of their cloud computing platform Microsoft Azure, which is expected to be released at the end of this year. Ozzie forecasts that cloud computing will be a have the biggest impact on Microsoft services like Exchange and SharePoint, the server programs that support MS Office.

He highlighted five significant areas where Microsoft will be leading competitors like Amazon-experience, technology, partners, developers, and customer momentum. Emphasizing the dual strength of Microsoft’s platforms and applications, Ozzie says that the company is positioned well to be a cloud computing provider because of its lengthy experience serving both the consumer and enterprise spaces.

The full transcript is embedded below:

http://viewer.docstoc.com/
05202009 JP Morgan Ray Ozzie

  • Frankly

    Ozzie’s the man. Amazon is going to get stomped. Hey, hey, you, you get off of my cloud…

  • http://www.silverlighthack.com Bart Czernicki

    Microsoft is not just a “cloud storage” or another vendor providing similar services. They have the storage data centers, OS/virtualization expertise, cloud services like: e-mail, Maps, SharePoint, Office, Collaboration, a programming platform (.NET), mobile platform and a great rich UI (Silverlight) to surface all of these cloud offerings.

    What other cloud vendor has all of this in a “one-stop” shop? Some vendors have great storage (Amazon) and some are experts in Virtualization (VMWare). If Microsoft does this right, they can own the “cloud business/SaaS” area. No other software/hardware/service vendor has all of these pieces of the cloud under one umbrella.

  • Simple Tom

    It must be a record. 2 comments about a Microsoft story and both are positive. Glad you guys are coming around.

  • http://www.examiner.com/x-8519-Detroit-Muslim-Examiner Sakina Al-Amin

    Sorry Simple Tom, but I don’t see anything special in what Ozzie is saying.

    Microsoft has always said it is in an “optimal position” to do things it couldn’t do.

    • Steve Gillmor

      like what? example of something Microsoft was well-positioned for that they failed at? Search they were poorly positioned for. Realtime? so far they haven’t said they’re positioned for that.

      • Carl Jensen

        Vista

      • Steve Gillmor

        Longhorn actually. But fair enough. But to say “always” is overstating it. And compared to who? Vista made them more careful and Windows 7 shows it. I think they’re formidable.

      • Special K

        Vista kicks ass. Anyone who says it doesn’t is just a clown riding the bandwagon. Pull your head out of the sand and start thinking for yourself, following along on the microsoft bashing does not make you look good, you are actually parading around shouting “look at me, I’m stupid and I don’t even know it”.

  • http://askbusinesscoach.wordpress.com courtney benson

    While I agree with Ozzie on the direction of Cloud and a blend, Microsoft will not be the only optimal provider. Competitors/Innovators are hard at work on interesting integration capabilities and business models that would benefit business

    @techdom

  • Peter Laudenslager

    I agree that Microsoft is well positioned to migrate or extend their existing customers to the cloud, but I doubt they will completely dominate the cloud space.

    Amazon would say that their advantage is their scale, their experience running multiple low-margin e-commerce sites, and their platform infrastructure. They built their cloud products (which are more than storage, btw) based on their need to build common infrastructure platforms for their own business. I don’t see Microsoft’s internal expertise at building this kind of platform.

    For example, Amazon’s SimpleDB is simple not because it is the best they could do – rather it is simple because they realized that 90% of their internal use of expensive, complex, relational databases was just for simple tables. Where are those insights from Microsoft?

    I certainly don’t think Microsoft will be a loser in this space, and I am not saying Amazon has it sewn up, but I would not dismiss them as a competitor, and I wouldn’t assume that there isn’t someone else out there with a good, orthogonal idea.

    The biggest risk to Microsoft in this space comes from the up swell of Linux in IT shops and development environments. For a non-Microsoft data center or hosted application developer, will the Microsoft cloud be compelling on its own? Or will it only appeal to customers who already have an investment in Microsoft. That sounds like a recipe for growing market share in a shrinking market.

    • http://www.silverlighthack.com Bart Czernicki

      @Pete,

      SimpleDB is not really that overly complex. You can put a team of engineers in a room for a couple weeks and create something similar. The concept of schemaless databases without joins, fast search and no lock updates isn’t exactly new.

      Couple things:
      – the first wave to the cloud is going to be existing apps. Those apps I would bet are 99%+ running on relational databases…so Microsoft’s solution fits right in
      – Amazon has the experience, scale and has been a player for a long time. However, Microsoft offers the “complete cloud” experience with all the services I mentioned. Does Amazon have something even close to .NET/Visual Studio? Does Amazon have SharePoint services? Does Amazon have a RIA like Silverlight to expose apps? If I am looking to write a service/store data Amazon might be the best option. If I want to create “complete” enterprise solution…Microsoft Azure seems like it is going to provide everything in one-stop cloud shopping.

    • http://twitter.com/martin_english martin english

      Peter Laudenslager,
      Interesting points – AWS works for both Amazon and us because its simple. Yes you can run complex stuff on it, but the basic archetechture is simple, bot hfor storage and for computing.

      I don’t see MS having a culture of producing simple architechtures….

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  • Eamonn Wade

    prem·ise [ prémmiss ] or prem·iss [ prémmiss ]

    noun (plural prem·is·es)

    Definition:

    basis of argument: a proposition that forms the basis of an argument or from which a conclusion is drawn.
    I question the premise on which your whole theory is based.

    ==========================
    prem·is·es [ prémmissəz ]

    plural noun

    Definition:

    1. land and buildings: a piece of land and the buildings on it

    2. part or all of building: a building or part of a building, especially when used for commercial purposes

    3. law matters previously mentioned: matters previously stated or referred to in a legal document such as a deed

    [15th century. < medieval Latin praemissa “things stated at the beginning” (see premise)]

    • Special K

      ===============================

      Douche [doo shh]
      singular noun

      Definition:

      1. A self righteous asshat who lectures others on their comments, and never realizes that everyone thinks he is a butt-pirate shit head. He is doomed to go through life unaware that he is hated by all, even his own family.

      ie. Eamonn Wade is a douche.

      [see douchebag]

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    […] Ray Ozzie Asserts Microsoft’s Position In The Cloud (Tech Crunch IT)Microsoft’s Chief Software Architect Ray Ozzie made some interesting predictions on the future of cloud computing at J.P. Morgan’s Technology, Media and Telecom Conference in Boston today (see below for the full transcript). Ozzie says that while the IT community is in the very early stages of cloud computing innovations, the future for companies’ data hosting will be in the mixture of cloud computing and on-premise data centers. […]

  • http://www.componenttovga.com vga

    Will be fun to watch how the cloud computing wars play out over the coming years with a couple of the big dogs going after this space.

  • http://betweentwobooks.blogspot.com Gilgamesh

    Google AppEngine rocks.

  • http://www.startbreakingfree.com Brian Armstrong

    Duh?

    I don’t see why this is news worthy. It’s like saying, “I think we can all agree that at some point in the future the U.S. will be comprised of both Republicans and Democrats”.

    What’s the right word for something that is such middle ground it’s hardly worth saying. Trite, banal? Not sure, but this statement is hardly worth repeating.

  • Frankly

    One thing is for sure, Microsoft will destroy whatever slim margins are left in this business…

  • Carl Jensen

    It used to be that MS could pretty much take down whomever they decided to go up against. However, I think they may be too slow and monolithic. This won’t be released before the end of the year? That is eons in IT time.

    Also, Windows 7 may be their best OS ever, but does it really matter anymore? I’d bet that the average user spends much more time in their browser than on any other component of their computer. The computer is just a window to the Internet for most users. That is why Android netbooks will be huge. It is free to the manufacturer and people just don’t care about the OS.

    • Oprah

      You are an idiot. Feel free to spout your idealogical nonsense, the rest of us will be making piles of money.

  • http://www.christiansarkar.com Christian

    The money is in Cloud Storage, for the foreseeable future. And it’s the service providers who will deliver on the promise of Cloud Computing:

    http://cloudstoragestrategy.com/2009/05/citrix-and-amazon-not-the-best-deal-for-service-providers.html

  • http://www.noliosoft.com/ Eran Sher, CEO, Nolio

    I certainly agree that in the future, every company will have some kind of environment in the cloud. I also agree that companies will need to look for tools that will help them deploy and manage their cloud applications.

    The layer IT will need to handle in the future is the Application layer, meaning, deploying, managing, maintaining and troubleshooting cloud applications. Existing automation tools are old and fit traditional data centers. They are solely system/infrastructure centric solutions, while there should be a shift to application-centric solutions that will enable effective and efficient automation solution.

    The only vendor doing that today is Nolio, an innovator of Application Service Automation solutions for physical, virtual and cloud data centers.

    Eran Sher, CEO, Co-Founder and Board Member, Nolio

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