WHAT THE CHIEFS SAY

Software and cloud services - enabling the European economy

Spring 2010

Sponsored section

Jean-Philippe Courtois
President, Microsoft International &
Senior Vice President, Microsoft Corporation

Technological innovations can dramatically change the way we live our day to day lives, the way we work, and in fact, it can change entire industries. In the next 5-10 years, ‘cloud computing’ promises to be the next significant turning point in the way we use technology.

When we talk about cloud computing, we refer to the delivery of computing capability over the Internet. This concept is familiar to anyone who has a personal Hotmail account; however, its application in the business world is less understood. Historically, businesses have run their IT in house, with applications and data on servers at their physical location. As businesses increasingly look to drive down costs and focus on their core competencies, there is a move towards the cloud – taking advantage of the economies of scale that can be achieved by consuming services across the Internet and paying only for what you use. There are obvious benefits such as shifting capital expenditures on hardware to operational expenditure. Other benefits include an ability to have a more agile IT capability that can respond to spikes in demand as needed and a reduced carbon foot print. Microsoft’s vision is one that embraces all of these benefits while providing customers with the flexibility to place some data in the cloud and to keep some on-premise.

With this flexibility created through the software plus services model, we are seeing a great deal of innovation and entrepreneurship. The cloud computing approach lowers the barriers to entry for all, including the 8,000 start-ups participating in our BizSpark program in Europe, many of which are already providing some very innovative cloudbased services, creating great opportunities for the European ICT industry.

Both policymakers and the technology industry have an important role to play in preparing Europe for this next generation of computing in order to drive a competitive economy.

As cloud computing introduces a wide range of game changing technologies, the rules of the game must be adapted accordingly. Policy must be enabling: Creating incentives for innovation, encouraging broadband access and expansion, and ensuring choice and interoperability. Policy must also protect citizens and businesses: safeguarding privacy and security of data, upholding Internet safety, and protecting intellectual property rights. We at Microsoft are committed to developing our cloud computing services with these key issues at the heart of our approach.

Besides the positive economic opportunities cloud computing will create, improved access to efficient and flexible computing power has the potential to enable breakthrough innovation across many critical societal issues such as education, healthcare, sustainability, and research. We support the EU’s various initiatives and programs helping to lay the ground for cloud computing and a new Digital Agenda. In particular, policies should focus on SME adoption and skills, a digital internal market, and improved broadband. It is only through partnership between governments and industry that we can progress towards an open, green and competitive knowledge-based society.

 

What the Chiefs Say is a public affairs platform designed for senior executives from leading organisations to voice their expectations and concerns.

In this issue, business and industry leaders present to Europe’s policymakers their policies and priorities.


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