Azure reinvents Microsoft for the internet era

At its annual partner conference in New Orleans last week, Microsoft unveiled pricing details and launch plans for Windows Azure, the “cloud” operating system that Ozzie hopes will become the online analogue to Windows on the personal computer - a platform that supports applications on the internet. The formalising of the plans, with Azure services going on sale in November, caps the first stage in an planned cultural and technological transformation of the world’s biggest software company. Part of his response was to bring together a small team of developers to work on Azure, treating it as a separate start-up. Besides mastering the new technology and the different sales and support operations that go with a services business, Microsoft will also have to learn how to make money in a business with much lower levels of profitability. In an interview recently, Werner Vogels, Amazon’s chief technology officer, said his company’s origins in retailing had prepared it for the high-volume, low -margin nature of cloud computing.

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