Computing comes in different flavors. We're probably most familiar with personal computers and web applications. Let's look at the models used by different vendors.
Apple has the simplest model: Devices that compute. Apple has built it's empire on high-quality personal computing devices. They do not offer cloud computing services. (They do offer their "iCloud" backup service, which is an accessory to the central computing of the iMac or Macbook.) I have argued that this model is the same as personal computing in the 1970s.
Google has a different model: web-based computing. This is obvious in their Chromebook, which is a lightweight computer that can run a browser -- and nothing else. All of the "real" computing occurs on the servers in Google's data center. The same approach is visible in most of the Google Android apps -- lightweight apps that communicate with servers. In some ways, this model is an update of the 1970s minicomputer model, with terminals connected to a central processor.
Microsoft has a third model, a hybrid of the two. In Microsoft's model, some computing occurs on the personal computer and some occurs in the data center. It is the most interesting of the two, requiring communication and coordination of two components.
Microsoft did not always have their current approach. Their original model was the same as Apple's: personal computers as complete and independent computing entities. Microsoft started with implementations of the BASIC language, and then sold PC-DOS to IBM. Even early versions of Windows were for stand-alone, independent PCs.
Change to that model started with Windows for Workgroups, and became serious with Windows NT, domains, and ActiveDirectory. Those three components allowed for networked computing and distributed processing. (There were network solutions from other vendors, but the Microsoft set was a change in Microsoft's strategy.)
Today, Microsoft offers an array of services under its "Azure" mark. Azure provides servers, message queues, databases, and other services, all hosted in its cloud environment. They allow individuals and companies to create applications that can combine PC and cloud technologies. These applications perform some computing on the local PC and some computing in the Azure cloud. You can, of course, build an application that runs completely on the PC, or completely in the cloud. That you can build those applications shows the flexibility of the Microsoft platform.
I think this hybrid model, combining local computing and server-based computing, has the best potential. It is more complex, but it can handle a wider variety of applications than either the PC-only solution (Apple's) or the server-only solution (Google's). Look for Microsoft to support this model with development tools, operating systems, and communication protocols and libraries.
Looking forward, I can see Microsoft working on a "fluid" model of computing, where some processing can move from the server to the local PC (for systems with powerful local PCs) and from the PC to the server (for systems with limited PCs).
Many things in the IT realm started in a "fixed" configuration, and over time have become more flexible. I think processing is about to join them.
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