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Does cloud computing represent a big opportunity for Microsoft, rather than a threat?



From PCWorld:
The new president of Microsoft's server and tools business Satya Nadella recently claimed that cloud computing represents a big opportunity for Microsoft rather than a threat. Is that just empty bravado, or does Nadella have a clear picture of the future?

In a discussion with Eric Savitz of Forbes at the GigaOM Structure Conference Nadella said that Microsoft's sweet spot has always been "low price and high volume." He added, according to Computerworld, "We're not the ones with high license fees. I look at this as structurally a very beneficial thing for us. But, sure, we have to innovate."
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