I read in the WSJ an article entitled "Microsoft's Successful Move Toward the Cloud." It talks about Microsoft Office 365 and its features that allow users to work in the "cloud," meaning that they do their computing online, with their work being saved online, etc. As we discussed in class, Microsoft has made their money by finding a deep profit pool in the software industry that has allowed them to be very successful, while others, such as IBM and other computer manufacturers have had difficulties.
The article specifically mentions that Microsoft realizes that the growing trends towards computing in the "cloud" and the popularity of tablets such as the Ipad and smartphones are weakening their previous strong position in the software industry. As more and more software applications become delivered over the web and through devices such as the Iphone and Ipad, the use of Microsoft operating systems will decline. It seems like Microsoft's latest push towards computing in the cloud is their attempt to find a new profit pool that will deliver continuing profits that shareholders of the company have come to expect.
I see this as a very good example of a company that has thrived on finding their own niche in the computer industry continually striving to stay one step ahead of the game and hold their market share. We'll see how things turn out for Microsoft, but one thing is for sure: their understanding of the principle of profit pools and their dedication to constantly finding new profit pools will continue to benefit them in the future.
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