Microsoft looks for the silver lining

Microsoft is planning to invest heavily in its cloud platform, but doesn't expect a fast return, Bob Muglia, the president of the server and tools business, said during a conference call on Tuesday. While the economic recovery is still coming along, Muglia said the computer giant is taking the long view--it will take two or three years until it sees any return.

"From the perspective of investment internally, interest from customers and engagement clearly the cloud will be an area of focus," Muglia said. "But in the next two to three years that is not what will drive financial growth in server and tools. It is essentially zero percent of our current operating revenue."

It's a slow-going strategy, but it is working, he said.

Microsoft just this month began billing users of its Azure cloud platform environment. Meanwhile, "the big dogs"--Windows Server and SQL Server--are the big revenue drivers, Muglia added.

For more on Microsoft's cloud:
- see this NetworkWorld.com article

Related Articles:
Is cloud computing right for your business?
IBM to offer enterprise services around cloud computing