By Tara Lane, Emerging Leader
There has been a long running debate in the technology world about the benefits of software vs. cloud computing. Each camp has valid arguments for why their system is superior. Many people use cloud computing technology and don’t even know it, through services like Yahoo! Gmail, and other Web-hosted programs. This debate was brought to a head on Wednesday, when a Texas judge ordered Microsoft to stop selling all versions of the wildly popular Microsoft Word software in the United States.
The ruling comes after a discovery that Microsoft included lines of code within the software enabling Word to open and manipulate files containing custom XML, a popular computing language, the rights to which were patented by Canadian-based company i4i.
Although most consumers use software in some way, shape or form, there is still that longing for something more. We feel tied down to Microsoft because it comes bundled with our computers, or because it’s the only program that can be used for collaboration and other business activities. It’s expensive, costly to upgrade and not very secure. For small businesses and startups, this can be a large part of a budget, when the money could be spent elsewhere. While Microsoft still maintains a large majority of the market share, there are other options that are worth looking into and taking advantage of.
This is where cloud computing comes in. Doing business “in the cloud” is easier than ever. One of the largest companies dominating cloud computing is Google. They recently reported more than 10 million active Google Apps users, with 3,000 new businesses signing up for Apps each day. That number has only grown, with the Google Docs word processing program having a respectable 20% market share. In addition to the Docs app, Google offers a number of cloud computing solutions for businesses—all for free.
Cloud computing through Google Apps allows co-workers to collaborate over various programs in real time, from any device that has Internet capability. The ease and accessibility of cloud computing platforms is key when it comes to competing with software systems. One of the biggest benefits touted by pro-cloud users is that there’s no need for software upgrades and updates once you’re in the cloud. The host server is updated remotely, leaving end users with the latest and greatest edition every time they log on.
Microsoft is making changes and gearing up to launch a new cloud-compatible version of Office in 2010. But will it be too late? Consumers and businesses alike are already settling into GoogleDocs, and may be reluctant to make another switch. The biggest difference—and challenge—for Microsoft, is the way Google includes their users into the development process. They allow users to test and try new programs in their developer’s portal.
In early July, Google announced their newest creation, the Web-based Chrome OS, as a competitor to Microsoft’s Vista. If successful, it will be the first OS hosted fully on the cloud—no need for software of any kind. In a world where the Internet is available from almost every device imaginable, it’s easy to see that cloud computing is just a natural progression in technology, and a smart choice for any business. Developers are working endlessly to make cloud-based apps more mobile accessible, and bigger and better than ever before.
Cloud computing technology can “virtually” bring a desktop to any portable device, specifically smartphones such as the iPhone and BlackBerry. Business can be done anywhere, from the airplane to the side of the pool, enabling people to break free from the office and bring business to a whole new level. It will be interesting to see not only how Microsoft handles the Word situation, but their future in software as well.
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Comments
Great article, I do not agree with all of your findings however I do respect for some businesses Google apps may be the perfect fit. However, as I mention to my colleague David West at eKzact Solutions (http://www.ekzact.com) business is not that simple. I wish it was. Financials, CRM and other line of business application with be the stumbling block for Google and their Apps offering.
But, if a company can move forward here it will be Google.
Is Microsoft done, of course not. I was at Microsoft WPC and this year will be the year of the ISV, Microsoft has called out on their partners (which Google doesn’t have) to continue to innovate on their platforms. Office 2010 offers a lot of security, collaboration and interoperability and combined with Windows Server and Windows 7, well it will be interesting.
Cheers
Stuart Crawford
Bulletproof InfoTech
Calgary, AB
Blog: http://stuart.calgarybloggers.ca
Very interesting article and one that really gets to the root of the current wave that has everyone talking – the cloud. Microsoft has been the staple for small businesses across the world for many years, and Google won’t be displacing that. Primarily because Microsoft has built a loyal channel of partners who make the recommendations that drive what happens in the IT business of small and medium businesses. They understand the power of the channel to direct and influence what gets sold and installed all over the world.
Google will make some temporary inroads but so far, in our experience, it is only a matter of time before folks return to something they know will work and depend on. That is where Microsoft has the upper hand. People may use Google for personal stuff that is not critical, but when it comes to running their business, they always come back to what they know works and allows them to do business day after day. That is really the unknown of the cloud in general – is it really dependable for business every day. It is getting better all the time, and change is coming, but for now, people seem pretty content to stay where they are doing what they know and trust. And as long as partners are recommending on premise Microsoft solutions – I don’t expect any wholesale move to anything else – be it Google, Microsoft of whoever.
Office 2010 will be a move to drive acceptance of the cloud as Microsoft releases some of their technology in that environment. But my bet is that we are some years from wide adoption in business. That doesn’t mean we shouldn’t prepare – the cloud train has left the station – but neither should we over react and lose sight of what reality is either. Change is coming – the real question is how quickly.
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Great article. I didn’t know that Docs share was 20%, I though it was much lower.
Cheers
I have a hard time believing the 20% number. We deal with a lot of small and medium businesses and none of them are using Google Apps in a production environment. I have signed up for an account to test with but my main tools are still Microsoft. Price may be a consideration for the software, but what will be the cost to retrain the workforce and migrate the data? Users aren’t too happy when Microsoft moves things around in the UI. I don’t see users studying Google Apps so they can land that next job. I think Microsoft is actually in a better position to take advantage of the cloud. They have the existing installed base of users and the channel to help migrate these users to Microsoft’s cloud.
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