Like all Microsoft strategies, Windows Azure is a reaction to external competitive pressures. And it is important, VERY important. Here's how a source of mine at Microsoft put it a few days ago, before the Azure announcement: "The cloud stuff isn't just another enterprise product. It is going to impact everything we do -- all of the product groups -- consumer and enterprise -- are going to have to figure out where they fit in to the cloud paradigm. The shift to cloud-based computing is analogous to our shift to the Internet in the late '90s. It changed the direction of the company and impacted everything we did."
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