Yes, the same nerds who would balk at using Windows would have balked at using Azure, but when it was time to choose clouds, that foot that Microsoft had in the door with corporate paid off big time. Many people have the privilege of working detached from the corporate world, but that also leads to warped perceptions like that of Paul in 2007.
Yep, I do think Paul was presciently observing a powerful class of people who would end up making the decisions in big companies that would not end up being all in MS customers, but I also remember being shocked seeing the demand for Azure when it first released (we wrote add-on software for cloud deployments for the big 3 clouds, and some smaller ones)