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Saturday, July 31, 2010
While analysts and bloggers gushing about the future of tablets and hunting the next iPad killer, I think the more important point is missed here – the future of computer industry.

The recent talk at the annual meeting at Microsoft headquarters about new tablet, based on Microsoft Windows 7 operating system enforced by new Intel processor sparked a real wave of articles speculating about the future of the consumer electronic devices and the place of Microsoft there.

If we carefully analyze the income of the Redmond software giant, we’ll see that ¾ of its income comes from corporate clients. This market is mostly solely belongs to Microsoft as the competitors like Google and Apple are having a really hard time to penetrate it. The reason is simple. Most of the corporate software products that companies of all sizes rely on in managing their business like ERP, CRM, accounting software, project management software etc, are mostly developed for Windows and its servers. So if you are a salesman or corporate executive and you are using your new iPad for work, in most of the cases you are still going to connect to Microsoft servers for accessing company data. It really limits your work as the software clients that allow you accessing Microsoft Windows servers from other operations systems provide limited functionality and can’t compete with the original Windows products. By most of the IT analysts, even Microsoft’s cloud services are more suited for business use than its competitors. In this specific case completing the line of devices running Windows OS makes a lot of sense and it makes a lot of sense for business user to choose Windows running devices over its competitors.

Here we come to the real point of this article. How the Cloud computing will be unveiling and who will lead the market. Currently corporations are using their business managing platforms that are heavily relying on Microsoft’s products. Moving these services to the Cloud makes heavy operating systems and servers almost obsolete. All you need for successful use of your company resources in the Cloud is a web browser and hi speed Internet connection. This business model very effectively crashes a very strong bond that Microsoft built with corporations and partners over the years of its existence.

In the current market it makes a lot of sense for software companies to develop products for Cloud instead for a particular operating system or platform. This tendency is going to harm the relationships between Microsoft and its software partners. Now the new challenge for Microsoft will be to convince a corporate world to stick by its products. And they’ll need to come up with a very good reason for this.

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