The battle for the cloud

Andy Kessler has a great op-ed in the Wall Street Journal, The War for the Web:

Microsoft was smart to walk away (for now) from its $44 billion bid for Yahoo. It’s never good to overpay. But the software giant – whose stock has flatlined for eight years – was onto the right strategy in looking to the Web for growth….

With the Microsoft/Yahoo deal breakdown, everyone assumes Google walks away with the prize. Not so fast. This contest is just starting. For Microsoft or Google or anyone else to win, they need four key elements of an end-to-end strategy:

– The Cloud. The desktop computer isn’t going away. But as bandwidth speeds increase, more and more computing can be done in the network of computers sitting in data centers – aka the “cloud.”…

– The Edge. The cloud is nothing without devices, browsers and users to feed it….

– Speed. – Speed. Once you build the cloud, it’s all about network operations….

– Platform. …Having a fast cloud is nothing if you keep it closed. The trick is to open it up as a platform for every new business idea to run on, charging appropriate fees as necessary….

Andy’s analysis is all in those ellipses. Succinct, on-point, and refreshingly insightful about the true drivers of Web 2.0. And I can’t help pointing out that the Wall Street Journal has now noticed the fundamental premise of our Velocity conference: “Once you build the cloud, it’s all about network operations.”

If Velocity were a movie, don’t you think that quote might be on the movie poster?

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