Microsoft is planning on coming out with its own cloud-based office applications. Don’t you think a lot of companies will stick with Microsoft because they have a history of using the company’s software? There will certainly be people who will stay with Microsoft because they know them, but those people will fall further and further behind. Microsoft will have to drag the past along with them. They have an enormous economic model to deal with, and that will hurt them. They have to find a way to go from the traditional software licensing model to a cloud computing model, and there has not been a company that has done that yet to date. It’s not to say Microsoft can’t do it, but they certainly have a lot of challenges to make that happen successfully.
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