Microsoft Reveals a Web-Based Software System

Microsoft announced on Tuesday the release of a new program called Live Mesh that allows users to sync their data over the Internet with a variety of programs.  Everything will be linked up to centralized data-storage ports, and companies will be able to purchase units of this space.  The NYT references the term "Cloud Computing," that is Internet programs that replace software programs. This is a very smart move for Microsoft, as it does seem to recognize that with the advent of many Google programs (like Gmail that allows unlimited storage, or Yahoo for that matter) and Amazon that recently said they are going to implement a similar online storage program, that I think charges 15 cents a month per five gigabytes.  

This move by Microsoft is probably closely linked to its attempts at taking over Yahoo.  Microsoft sees that Internet software is where the money is headed, probably due to the increase in broadband width.  Microsoft is making an altogether shift to try and tackle online programs and Yahoo would be a great boon to this.  However, Microsoft is focused on certain parts of Yahoo, like its advertising strategies, which would aid Microsoft in their future ventures.  Also Alibaba is important to Microsoft so that it can enter the asian market.  

I think that Live Mesh is a very strategic move for Microsoft, though this announcement may have unveiled too much in regards to the Yahoo deal.  Yahoo's resistance is fueled by the idea that Microsoft is undervaluing them, because Microsoft must believe that Yahoo will have a good ROI that is worth a 60% premium.