Welcome!

.NET Authors: Corey Roth, John Savageau, David Weinberger, Aditya Banerjee, Data Recovery Services

Related Topics: Cloud Expo, .NET

Cloud Expo: Article

The Business of Cloud Computing: Ozzie on Cloud Margins

“The margins on services are not like the margins on software," says Microsoft’s chief architect
By Maureen O'Gara
Article Rating:
June 14, 2009 07:30 AM EDT
Reads:
 1,843

Microsoft’s chief architect Ray Ozzie has figured out that cloud margins aren’t gonna be the same as the margins derived from on-premises software. “The margins on services are not like the margins on software so [cloud computing] will increase our profit and it will increase our revenue, but you won’t have that margin,” he’s quoted as saying at the Churchill Club last week.

“The margins at the low level, at the Azure level, are going to be lower than the top level, where you’re delivering a solution or something like Exchange. You’re pricing that solution around a business value more than cost so the margins are still very, very good.”

Published June 14, 2009 – Reads 1,843
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.