“No-one has done cloud ERP!”
I bet Zach Nelson and Aneel Bhusri and Jason Blessing and Steve Miranda disagree with him – some more vehemently than others.
Actually Kirill explained Microsoft’s differentiation better in another answer
“There is one very large organization that I spent a good chunk of time with last month. In all the discussions we’ve had, we haven’t even talked about the mode of deployment. We’ve given them the assurance that it will run on the Microsoft cloud and that they can put it in their data center.”
With many of the Microsoft VARs offering their own private clouds, there is yet another flavor he can offer.
Which is why he can point out at least some European organizations are spooked by the NSA disclosures. But even they are looking at regional clouds, not dismissing public clouds completely.
Actually his new CEO, Satya Nadella, fresh from his successful Office365 launch will likely join Zach and Aneel and others in suggesting a bit more of a nuanced answer in Atlanta:)