Is "cloud computing" an online technology tsunami?

Todd Pierce, Genentech's chief information officer, decided not to rely entirely on business software from Microsoft, IBM or another long-established supplier that would have let Genentech own the technology rented these indispensable products from Google Inc. And here appeared an unconventional approach called "cloud computing." After lengthy internal testing, Pierce became convinced that Google can be trusted to provide critical software programs for Genentech as adeptly as it deciphers Internet search requests to sell ads. 

Cloud computing has already swelled into an estimated $36 billion market this year, representing roughly 13 percent of global software sales. And it is believed that it can turn into a technology tsunami that sweeps Microsoft and other software industry staples into obsolescence. Yet for all the potential and hype surrounding cloud computing, breaking old habits won't be easy particularly with business-software powerhouses Microsoft, IBM Corp., Oracle Corp. and SAP AG all manoeuvring to protect their existing, lucrative software franchises while also setting up their own online services to compete with the industry upstarts. And Genentech is no an exception. It isn't ready to abandon Microsoft entirely. It's still licensing Microsoft programs like Word for writing documents and Excel for creating spreadsheets. However, cloud computing becomes more and more attractive and looms larger on corporate horizons. In contrast with software which requires installing programs on disparate computers owned by the companies, cloud computing lets companies have someone else run their software remotely for a monthly or annual fee, with users accessing the programs over live Internet connections.