Obama's new CIO moved tens of thousands of employees from MS Office to Google Apps as the CTO of Washington DC to save money.  Vivek Kundra will consider these type of initiatives as part of a committee he has put together working on cloud computing. (This was mentioned in a recent Wired article and originally was reported here.) 

Microsoft is getting nervous and shifting to more online services, according to an Business Week article. It also mentions that Exchange and SharePoint are now offered as a web service for a monthly fee and Office will likely eventually go to the subscription model. As a step in that direction, Office 2010 will have a limited free online version. (and will be more focused on collaborate - enterprise 2.0 here we come). 

CIO.com says that hosted e-mail is a hit, but wonders how far Microsoft will go with the cloud.

However, a Microsoft sponsored study says that many companies (33%) will move away from a traditional, client-server model to one based on virtualization and cloud computing over the next two years (as reported in a Network World article). Another Network World article reports that said 15% of corporate customers have adopted or will consider adopting cloud technology over the next year. 

While the two surveys aren't incongruent (15% within a year; 33% within two years) the headline for the first article proclaims that the "Survey casts doubts on cloud adoption" and the headline for the second proclaims that "(A Survey Reports that) Many Companies say They Will Adopt Cloud Computing within Two Years."

While there are many different ways to look at it, one way to think about