Why would IBM and Cisco be better positioned than Microsoft in the cloud? That makes no sense. Microsoft is still the leading or one of the leading developer platform providers. 10's of thousands of companies and millions of developers use Microsoft frameworks and tools for software development. Yes, there are lots of great alternatives (Java, Php, Ruby etc. etc. etc.) and that's a good thing. But all things being equal I'd probabyl rather be Microsoft right now than pretty much any other company trying to establsh itself in the cloud except perhaps Amazon and Google. In addition to the developer platform assets, they have the capital to build lots of big/expensive datacenters, the network of partners/ISV's who use their platforms and lots of mindshare. IBM, from what I can tell, is essentially just doing the same thing they've been doing forever - offering good but expensive outsourcing services for very large businesses who have too much money to spend.