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Venture capitalist Brad Feld recently wrote an interesting post predicting the end of Amazon's dominance of the cloud computing market, and concluded, "it’s suddenly a good time to be Microsoft or Google in the cloud computing wars." I'd go one step farther. Using Feld's arguments, I'd say that Microsoft is in the driver's seat. More like this The dark side of the cloud price wars between Amazon, Google, and Microsoft The rise, fall, and rehabilitation of Internet Explorer Microsoft, Apple, and Google battle for the mobile enterprise Featured Resource Presented by Citrix Systems 10 essential elements for a secure enterprise mobility strategy Best practices for protecting sensitive business information while making people productive from Learn More First, the price war. Microsoft and Google are on approximately equal ground when it comes to cutting prices -- both have highly profitable core businesses that they can use to subsidize a price war in cloud infrastructure, even to the point of sustaining losses for a while to gain market share. Amazon does not.
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Second, the quality argument. Like Feld, we've also pointed out that there are niche cloud providers that do a better job than the big guys at providing infrastructure-as-a-service for specific verticals, but when you move all the way up the stack to full software-as-a-service applications, Microsoft has an edge among the big three with Office 365.
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Google has been making inroads into smaller businesses with Google Apps for almost a decade now, Microsoft remains the standard in the biggest and most profitable business customers -- as this recent investigation from Dan Frommer at Quartz showed, only one company in the Fortune 50 uses Google Apps. (That company happens to be Google itself.)
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