Microsoft Cloud Economics

August 17, 2008

Richi Jennings is an independent consultant and writer, specializing in email, spam, blogging, and Linux. His article “On Microsoft Online Services” is worth reading. You can find it here. His assertion is that Microsoft’s pricing for its online services will weaken the service. Mr. Jennings identifies information technology managers’ lack of knowledge about the cost of running machines and software on premises. He notes:

vendors would tell potential purchasers that they [the vendors] could provide the service for less money than it was currently costing to run it in-house, but when it came time to actually quote for the service, most IT managers simply didn’t believe it cost them that much.

The point is that basic knowledge of what enterprise software costs may be a factor in the success or failure of cloud services. He contrasts Microsoft’s online service pricing with Google’s. Google is less expensive. A happy quack to Mr. Jennings for this analysis.

Stephen Arnold, August 17, 2008

Comments

One Response to “Microsoft Cloud Economics”

  1. Stephen on August 18th, 2008 9:04 am

    a few days ago hyperoffice announced hypermeeting , its web conferencing solution. the two solutions – HyperOffice (collaboration and messaging alternative to sharepoint and exchange) and HyperMeeting, are completely integrated. i think this could be a great option for growing organizations which dont want to go with MS services.

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