So just how will, the cloud computing system affect the financial stature of Microsoft? With cloud computing customers are not purchasing servers they are purchasing capacity, as the entire basis of the system is to blend the hardware, software and services together. This means that a new market would be emerging. For mid-market companies this would allow them the capacity to implement an infrastructure without the higher price tag of a sharepoint. This means more market share for Microsoft. Through expanding their market base they are able to capitalize on the growing needs of that market and create a name for themselves as an industry leader in such an arena. Delivering services by way of the cloud system will also increase gross margins for Microsoft by lowering the overall expenditures for both Microsoft and its customers. Microsoft formulated that there would be a 10% savings over what customers were paying for their Azure service. Then there are licensing and servicing costs which would
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