Yahoo (Finally!) Jumps Big Into Cloud Computing

According to The Register , the Yahoo! technology organization led by CTO Ari Balogh will now work on "developing a world-class cloud computing and storage infrastructure; rewiring Yahoo! onto common platforms; and creating a stronger partnership between product and engineering teams." Part of the Yahoo! reorganization will include the formation of a Cloud Computing & Data Infrastructure Group.

Infoworld also reported the story.

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Microsoft vs Google in Cloud Computing

Many took note of the Randall Stross essay in the New York Times last weekend. In it he succintly described why Microsoft is failing in it's attempt to bridge the next major shift in the computing industry. The cloud computing relevant points seem to be:

1) Microsoft's online services aren't doing well at all. The last time it made money online was fiscal 2005. Microsoft's online business actually lost $74 million last year.

2) Google--which makes about 90 percent of its revenues from online advertising--made $1.5 billion in 2005, $3 billion in 2006, and $4.2 billion in 2007. "Google’s share of searches in the United States has increased to almost 67.9 percent in March 2008 from 58.3 percent in March 2006. During the same period, Microsoft’s share has dropped to 6.3 percent from 13.1 percent."

With another view on Microsoft, Chris Capossela, Microsoft SVP, made the following comments:

• [Microsoft]will see more and more companies abandon their own in-house computer systems and shift to "cloud computing," a less expensive alternative.
• [Microsoft] plans to be "agnostic" by offering customers the choice between a traditional licensing model or a subscription-based service model embraced by rivals like Salesforce.com and Google.
• "In five years, 50 percent of our Exchange mailboxes will be Exchange Online,"
  

No wonder they need Yahoo.

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Microsoft Renews Yahoo Bid

Microsoft renews Yahoo bid and is now offering to buy a piece of Yahoo. I believe this is just the opening of the second round.

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Gartner on Cloud Computing / Yahoo vs. Icahn- May 15, 2008

Gartner thinks that cloud computing may be the next big thing:

By 2012, 80 percent of Fortune 1000 enterprises will pay for some cloud computing service and 30 percent of them will pay for cloud computing infrastructure.

Through 2010, more than 80 percent of enterprise use of cloud computing will be devoted to very large data queries, short-term massively parallel workloads, or IT use by startups with little to no IT infrastructure.

According to Gartner analysts Daryl Plummer and Thomas Bittman at the Gartner Emerging Technologies conference in Las Vegas Cloud computing is largely misunderstood, but it’s a big deal. It could,in fact, be as big as the e-business revolution.

See more at Cloud computing: A look at the myths.

Carl Icahn and the the Yahoo Board of Directors are apparently having a very pointed discussion now. Mr. Icahn implies that the Yahoo board is not fulfilling their responsibilities to the stockholders. The back and forth is explained at Yahoo to Icahn: You misunderstand

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Yahoo-Microsoft Merger Proxy Fight - May 14, 2008

As I alluded to last week, "It's not over 'till it's over"

Carl Ichan Looking to Start Yahoo Proxy Fight

Money – The Microsoft-Yahoo Merger may not be over. Billionaire investor Carl C. Icahn is considering the prospect of starting a proxy fight to gain several seats on Yahoo's board in hopes of restarting negotiations with Microsoft.
I can only imagine that Mr. Ichan is looking at cloud computing as fertile ground.

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Microsoft gives up on Yahoo? - May 04, 2008

"Cloud computing is far more than a concept. With Broadband Internet connections now all-but-ubiquitous and microcomputers and locally-run software now so trouble-prone, Cloud Computing's time has come."

This is a quote from Steve Stroh's newly started blog on cloud computing. Steve has been writing about about Broadband Wireless Internet Access systems and technology since beginning a column about wireless for Internet Service Providers called Wireless Data Developments in Boardwatch Magazine in April, 1997. He started this last February blog because he hadn't "seen any good coverage of what the Cloud Computing trend makes possible from an ordinary user's perspective".Well Steve, I think things are going to change now.

Last week, I attended the IBM Business Partner Leadership Conference in Los Angeles. While this conference is obviously meant to build the IBM brand and business, "cloud computing" was highlighted as the new computing model. This vision changes the idea of convergence from "everything in one device" to having all information "in the cloud" accessible by any device via industry standard protocols and interfaces. To that end, IBM and Google have teamed up to build a "Google-like" technical infrastructure upon which business enterprises can leverage cloud computing to have ubiquitous access to information globally no matter where it resides. Microsoft's announcement yesterday that it had given up on its attempt to buy Yahoo, now leaves Google and IBM in the perfect position to now define the future of cloud computing, right?

NOT!

Mark my words. The other shoe hasn't dropped yet. Cloud computing could completely change the mobile computing world. Since mobile device would serve as portals into the cloud, they would need to comply with any standards that would be put in place. An IBM/Google cloud platform could spell the end to the Microsoft dominated world. Just on Friday I was exchanging thoughts with Adam Zawel, INmobile.org Chief Collaboration Officer, on how the emerging battle between IBM/Google and Microsoft/Yahoo could drive future mobile device design just like the operating system shakeout (Windows Mobile vs. Symbian vs. Palm vs. RIM) did earlier. Cloud platform standards will basically determine what mobile function reside where.
IMHO there is more to this story than meets the eye.

Here's some reading for you Steve!

Not Just a Pretty Dream: Why Cloud Computing May Be the Most Durable 2.0 Tech

What is cloud computing?
Understanding the Cloud Computing/SaaS/PaaS markets: a Map of the Players in the Industry
Intel: "Web 2.0"-style cloud computing just a passing vapor

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