Hold on to your hats; Microsoft has just made a radical change in business model. A couple of months ago I wrote about the competitive advantage that firms using Linux and Amazon’s EC2 cloud computing had over their competitors.
Server-on-demand providers like Amazon’s EC2, Joyent,
and others have reduced the capital necessary to launch scalable,
server intensive businesses. Google has just launched a similar
on-demand service, and companies like RightScale and CohesiveFT are building mature businesses around managing EC2 configurations.
Facebook applications are just the most extreme example of business initiatives that can be scaled