Microsoft rolls out new tech to connect its cloud to rivals

3 weeks ago 20

A Microsoft logo is seen successful Los Angeles, California, U.S. June 14, 2016. REUTERS/Lucy Nicholson

Nov 2 (Reuters) - Microsoft Corp (MSFT.O) connected Tuesday announced a caller circular of technologies aimed astatine making its unreality computing services enactment successful information centers it does not ain - including the unreality information centers of its rivals.

The strategy, Microsoft executives and analysts say, has been cardinal to the company's emergence successful the unreality computing infrastructure market, which probe steadfast Gartner estimates deed $64.3 cardinal and wherever Microsoft is 2nd lone to marketplace person Amazon.com's (AMZN.O) Amazon Web Services. Microsoft past week said gross from Azure, its flagship unreality offering, grew 48%, results that helped it overtake Apple Inc (AAPL.O) arsenic the world's astir invaluable publicly traded company.

Microsoft's strategy has progressive constructing its astir lucrative unreality bundle services, specified arsenic database tools, truthful that they tin tally wrong its ain information centers, those owned by customers oregon adjacent those of rivals similar Amazon.

Microsoft's unreality and artificial quality main Scott Guthrie told Reuters that the determination has persuaded immoderate customers to usage its services erstwhile they cannot ever usage Microsoft's information centers. Royal Bank of Canada, Guthrie said, faces ineligible requirements to support immoderate of its computing enactment successful its ain information centers and uses a exertion called Azure Arc to link those facilities to Microsoft's cloud.

"The situation with higher-level services historically has been the interest of 'lock in' - what happens if I tin lone usage them successful your information center?" Guthrie said. "That state of question causes customers to consciousness overmuch much comfy utilizing those services."

Ed Anderson, a vice president distinguished expert with Gartner, said the attack does unfastened doors for Microsoft with customers, but it besides forces the institution to vie connected the prime of its bundle services alternatively than by packaging them with inexpensive computing power.

"To beryllium honest, that's a amended mode to compete," Anderson said. "Customers are suspicious of rhetoric. They look for grounds of capabilities and are cautious of things wherever successful rule exertion is multi-cloud but possibly the bundle licensing doesn't enactment it."

Reporting by Stephen Nellis successful San Francisco

Our Standards: The Thomson Reuters Trust Principles.

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