Its a continuing theme for Microsoft, they are behind in the curve in creating cloud offerings. Looking at the cloud computing landscape, http://cloudtaxonomy.com, few current vendors are using MS technologies for their platform. Looking through all the cloud software available, very few vendors are creating software for MS platforms. MS is also behind on big data software such as a Hadoop competitor.
MS will be able to catch up in some areas. There's a large number of software vendors with products that can be converted to SaaS offerings. They will need to rearchitect. However, vendors building from scratch are using more productive languages such as Python, Ruby, and PHP which gives them a large advantage over .NET or Java development. They are the first generation of application vendors that are taking true advantage of cloud economics.
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