Stories by: Bill Snyder

It's no surprise that Microsoft has its eye on the cloud. Cloud computing, that is.

You might hate Wall Street -- and who doesn't this week, but if you work in IT you owe the Street a vote of thanks because the fat cats in financial services have been a major driver of technological innovation.

Managing data isn't as glamorous as many of the glitzy Web 2.0 apps on display at the Demo Fall 2008 conference in San Diego, but it's what keeps businesses running. Enterprise applications to speed databases, manage unstructured data, and handle BI queries on a massive scale made their debut this week, and at first blush they look positive. Of course, all will have to stand the rigor of real-world use and testing.

Pity the poor road warrior who tried to find his data on The Linkup, only to get this message when he logged in: "Unfortunately The Linkup service is no longer available. Please visit box.net for your storage needs." What's worse, the sales guy was on an extended trip through North and South America. That's a real story, told by one Jacob Sherman, "I just want my data," he said.

You know a technology is getting some traction when imitators jump into the game. That's the case these days with cloud computing. Just this week, Amazon added Red Hat's JBoss to its EC2 cloud computing platform, and an established hosting service -- ServePath -- jumped into the fray with a version of cloud computing called GoGrid.

It's a classic "good news, bad news" kind of story. Microsoft is finally giving us some hard information about what Windows 7 will look like.

There are few clearer bellwethers as to the imminent direction of technology than where venture capitalists put their money. They're about making money, so they look for industry patterns they think will lead to sure bets. And that means they invest where the tech industry has begun to coalesce its thinking, not on exotic new science fiction. According to PricewaterhouseCoopers, VCs have invested a total of US$57 billion in startups -- mostly tech ones -- in 2005, 2006, and 2007.

It took the United States just 45 months to defeat the combined forces of Germany, Japan, and Italy. It has taken SAP 48 months to get Business ByDesign, its SaaS (software as a service) play for the SMB market, off the ground. And it still isn't ready for prime time.

Amazon, better known for peddling books and CDs than selling leading-edge technology, surprised much of the tech world by rolling out, and actually attracting customers to, its version of cloud computing. Sure, there's still plenty of reason to be skeptical -- indeed, cloud computing is one of those technologies that can sound more like a buzzword than a solution to real-world IT problems -- but other players are jumping into the game.

Multi-core chip rivals AMD and Intel have been beating their chests as of late, but to what end, I wonder, as developers labor to keep up.

By the standards of its US$45 billion offer for Yahoo, Microsoft could have found the $500 million it is rumored to have paid Danger in Steve Ballmer's couch.