With Oracle positioned to make a deal, Microsoft’s Product Marketing team seized an opportunity to add more fire to its Azure Cloud offer in an effort to carve into Amazon AWS’ commanding position in the Infrastructure as a Service (IaaS) market for cloud services. Oracle customers can now use Azure as an IaaS provider. Many of these enterprise business customers are likely to already be Microsoft customers, so this Joint Marketing deal will benefit Oracle by providing it with a highly reliable cloud offer immediately available for its customer base.
Early stage ISVs can learn a lot from this joint marketing example. One aspect worth noting is as follows: These deals always include benefits for both parties. Oracle adds an IaaS offer already well received by enterprise customers — Microsoft Azure — to its offer lineup. In turn, Microsoft gains exposure to additional enterprise markets in need of IaaS. These markets can contribute substantially to Microsoft’s share of the overall IaaS market. So this deal includes a substantial amount of value for both participants.
Joint Marketing is particularly valuable for early stage ISVs looking to gain market share. So it makes sense to include “likely market impact” in a review of the business-worthiness of any product notions. Management can use this review to determine whether products make sense given development costs and a probable rate of payback. It may make sense to design products to fill a gap in a particular solution, simply to attract the attention of potential joint marketing partners already established in target markets. As we wrote earlier in this blog, in 2011, we have first hand experience with this particular strategy. So we can attest to the substantial positive impact managing product development in this manner can produce.
Earlier this year, industry analysts claimed Amazon has achieved a dominant position in the IaaS market with AWS. Certainly AWS may presently have 70% of the market, but this joint marketing deal can propel Azure into much more market share.
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