Microsoft's cloud computing strategy is a tale of two clouds. There are its popular software-as-a-service offerings: SharePoint, Exchange, Dynamics CRM, and the soon-to-be-released new Web version of Office 2010. And there's Microsoft's emerging platform as a service, Microsoft Azure
One of the main cogs of Microsoft's cloud strategy is Microsoft Azure, its approach to selling computing power over the Internet based on usage, as customers need it. Microsoft has some enterprise customers such as Kelley Blue Book and Domino's testing key Web applications on Azure, and some smaller tech companies sell software services running on the platform. But Microsoft Azure continues to be a work in progress.
Both of these examples expose Microsoft's version-oriented and feature-oriented view of software. Rather than seeing the web as a series of services that are always online, Microsoft seems to have no problem with taking their blogs offline for a week, which is an eternity in Internet time. Rather than incrementally improving Hotmail with small tweaks over time, Microsoft focuses on big-bang releases and still manages to ignore the need for basic IMAP functionality
Dogfooding, in Microsoft-speak is the act of using a product or service internally so that its developers can experience it the same way that customers will. With their Microsoft Azure efforts, Microsoft seems to have lost its way. Their cloud efforts reflect an internal diet that's more like caviar than dogfood.