If microsoft does not build a cloud computing business, the company over the next decade had little choice but to invest in cloud computing.
So if Microsoft does not build a cloud computing business then Microsoft may get devastated as there will be no need of operating platform in the near future. Microsoft anticipated the growth of cloud computing as a threat and also an opportunity to expand their business.
Cloud computing is the on-demand use of computer resources housed in a distant data center and controlled by a cloud services provider, such as programs, servers (both physical and virtual), data storage, development tools, networking capabilities, and more.
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