Microsoft Corporation (MSFT), Adobe Systems Incorporated (ADBE): Xbox One, Creative Cloud Backlash Show Limits of Cloud Computing

A Mashable article on the switch drew hundreds of comments, nearly all of them negative. But unlike Microsoft, most of the anger Adobe Systems Incorporated (NASDAQ:ADBE) has faced is aimed at its subscription model, rather than its Internet verification.

However, in general, cloud computing and subscriptions go hand-in-hand. After all, cloud software requires a server to be run on — a server that costs money to operate. Paying a one-time, upfront charge for lifetime access to a cloud solution is not a winning proposition for any business.

Google Fiber

As a company, Google Inc (NASDAQ:GOOG) and the cloud are virtually synonymous. With the exception of Android OS, all of Google’s products rely on the Internet.

Perhaps that’s why Google has become an Internet service provider. Currently, Google Fiber is only available in Kansas City, but is on its way to Houston. The search giant has received considerable media attention for Google Fiber, which offers insanely fast Internet at reasonable prices.

At the same time, Google Inc (NASDAQ:GOOG)’s research arm, Google X (known for its work on self-driving cars), is exploring ways to bring the Internet to every corner of the globe. Google’s Chairman, Eric Schmidt, has predicted that within 7 years, everyone on the planet would have Internet access.

Solving the challenges of the cloud

By forcing the cloud down the throats of its customers, companies like Microsoft Corporation (NASDAQ:MSFT) and Adobe Systems Incorporated (NASDAQ:ADBE) risk alienating them. That leaves the door open for rivals to take advantage. For its part, Google seems to understand the challenges it faces, and is actively working to help solve some of these problems.

There’s no stopping the move to cloud computing — too many companies are too invested. But those companies that do make the shift need to do so intelligently, or they could find themselves being punished for their ambition.

The article Xbox One, Creative Cloud Backlash Show Limits of Cloud Computing originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Adobe Systems and Google. The Motley Fool owns shares of Google and Microsoft. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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