Microsoft Rolls Out New Tech to Connect Its Cloud to Rivals 4j3c2n

Microsoft aims to open its doors to more customers with its new offerings. 3es3e

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Microsoft Rolls Out New Tech to Connect Its Cloud to Rivals
Highlights
  • The strategy has been key to Microsoft's rise in the cloud computing
  • Microsoft said revenue from Azure grew 48 percent
  • Microsoft's strategy involved constructing its cloud software services
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Microsoft on Tuesday announced a new round of technologies aimed at making its cloud computing services work in data centres it does not own - including the cloud data centres of its rivals. v6y1m

The strategy, Apple as the world's most valuable publicly traded company.

Microsoft's strategy has involved constructing its most lucrative cloud software services, such as database tools, so that they can run inside its own data centres, those owned by customers or even those of rivals like Amazon.

Microsoft's cloud and artificial intelligence chief Scott Guthrie told Reuters that the move has persuaded some customers to use its services when they cannot always use Microsoft's data centres. Royal Bank of Canada, Guthrie said, faces legal requirements to keep some of its computing work in its own data centres and uses a technology called Azure Arc to connect those facilities to Microsoft's cloud.

"The challenge with higher-level services historically has been the concern of 'lock in' - what happens if I can only use them in your data centre?" Guthrie said. "That freedom of movement causes customers to feel much more comfortable using those services."

Ed Anderson, a vice president distinguished analyst with Gartner, said the approach does open doors for Microsoft with customers, but it also forces the company to compete on the quality of its software services rather than by packaging them with cheap computing power.

"To be honest, that's a better way to compete," Anderson said. "Customers are suspicious of rhetoric. They look for evidence of capabilities and are cautious of things where in principle technology is multi-cloud but maybe the software licensing doesn't it."

© Thomson Reuters 2021


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