> When will that occur? What will the revenue fallout of that look like?
The revenue fallout already looks like the PC market implosion, except that Microsoft is large and diverse enough to slosh the books around so that it isn't obvious. Intel already restructured their accounting in the same way to mask underperforming divisions.
More than 30% of all ODM output is purchased by the large cloud vendors. Anybody still doing premise installations is a small customer in comparison.
> But the existing strategy of herding customers towards the cloud had led to some pretty bitter alienation and it is starting to show in revenue.
You have this backwards. Customers stampeded toward the cloud and left Microsoft standing in the field.