• Telegraph (UK) et al., Friday, March 5, 2010 11:32 AM

Not to be outdone by Google's cloud-computing efforts, Microsoft CEO Steve Ballmer now says he's 'betting the company' on the technology. By Ballmer's estimates, about 70% of Microsoft employees presently work on cloud-related projects -- and that figure will grow to 90% within a year.

"The cloud fuels Microsoft, and Microsoft fuels the crowd," Ballmer said during a presentation on Thursday according to The Telegraph. "We're all in."

That last statement "may portend a change in mission for the software giant, which for years has talked about a future of software plus web-based services," notes paidContent.

According to The Telegraph: "Microsoft, which has traditionally earned most of its revenue from its operating systems and computer software, is keen to find ways of adapting this model for the internet age."

Still, "Based on his presentation, Ballmer seemingly was using the terms 'cloud' and 'Internet' interchangeably," remarked Mary-Jo Foley on ZDNet's All About Microsoft blog. "But to me, the Web is not the same as the cloud ... Then again, maybe I'm just splitting hairs."

Rather that software, files and digital services being tied to an individual computer, cloud computing makes them ubiquitously accessible via the Web. The technology is seen to be particularly important to the future of mobile, because it makes vast amounts of data available without requiring its "physical" storage.

While Google has been the most vocal advocate of the cloud, Ballmer made no mention of the bitter rival on Thursday. Rather, "the Microsoft CEO praised one prominent example of a cloud computing application made by a competitor, Apple's iPhone App Store, on which [he said] that company has done a 'very nice job,'" reports The Wall Street Journal's Digits blog.

To date, Microsoft has launched Windows Azure, a platform for developers to create cloud-based applications and services, and has also created online versions of popular programs, such as Word and PowerPoint.

"The cloud isn't anything new, but it's taking shape, and clearly in the hands of only a few companies," writes Gizmodo. "Google is the biggest, and arguably Microsoft is #2 ... In other words, we need to listen to Ballmer, cuz he'll be driving it, at least for now."

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