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Microsoft CEO: In public cloud, go big or get the heck out

Building a global cloud is a huge opportunity but also a money pit. So if you’re a tech provider and haven’t already invested multiple billions in data centers and other infrastructure to support your cloud, you might as well use someone else’s. Microsoft CEO Satya Nadella didn’t say those words exactly, but it’s the gist of what he told CNBC in an interview on Monday.

“I think that if you’re not already spending a lot of capital in the order of four or five billion dollars each year to just grow your cloud, probably it’s a little too late to enter the market. I mean, that’s the entry barrier, and there are a few of us who are in that mega-scale of cloud,” Nadella noted in advance of a [company]Microsoft[/company] cloud event to be held in San Francisco Monday.

Clearly, current telcos and network operators have to be in this business, but there are a handful — countable on fewer than five fingers — of  those “mega-scale” cloud providers that are also playing on this global stage, Nadella said.

In our case we’ve been committing to it for multiple years and we’re not alone. There are at least two other players like that, [company]Amazon[/company] and [company]Google[/company] in particular. But we are one of the three in that category. And the way we’ve not only done that, but one of the things that we’ve really invested in is this enterprise cloud, which is — we have data centers in 19 countries.

But, as Amazon CTO Werner Vogels said at Gigaom’s Structure 2014 event in June, Nadella also acknowledged that public cloud will not be a “winner take all” market. “I don’t believe that one single North American company or a couple of North American companies are going to corner the world’s compute, storage and network,” he noted.

At Structure 2014, Scott Guthrie, Microsoft’s top cloud guy who will also be on hand at Monday’s San Francisco event, said Microsoft is prepared to keep meeting and beating any price cuts to come from Amazon and/or Google to win business.

Check out the video links below to see Structure 2014 chats from Vogels, Guthrie and Google cloud chief Urs Hölzle.

2 Responses to “Microsoft CEO: In public cloud, go big or get the heck out”

  1. Cloud is the most stupidest idea that is being sold in our corporate world these days…if you are a corporation who are very protective of your corporate secrets, data and security, Why send/store your data somewhere else other than your company’s server. The idea about cloud is to save money and accessibility, but corporation saving a few millions but may end up having their corporate strategies/secret stolen from them thus making their competitors know their corporate secrets or foreign gov’t knows what is going on in corporate America. The good thing about cloud computing is for hackers…they can just go/hack one server then gets lots of info from lots of American corporation/or people. There is no such thing as 100% hack free server, all of them can be hack the only difference is the time and effort. Data can be stolen by the insider where the clients don’t have control because the cloud provider are hiring the employees or by the outsiders (computer hackers/foreign countries). I will never ever store my important data in the clouds, if ever you want to do this have your owned encryption. Like if you are storing Microsoft document in there put a password on each document.

  2. Someone should tell Vogels that wearing black doesn’t make him look healthier. Better yet, someone should tell any CEO who’s thinking of putting his infrastructure in that guy’s hands to watch this video with both feet on the ground.