Microsoft Differentiates Its Azure Offers via Acquisitions

In the aftermath of the public release of Amazon’s most recent quarterly earnings report, analysts have focused on price and margin reductions for its Amazon Web Services (AWS) product line. Microsoft’s Azure is a competitor of Amazon AWS, but, per Microsoft’s most recent quarterly earnings report, Microsoft is adding services to its Azure offers via acquisitions, presumably to better differentiate its cloud, IaaS offers for consumers.

Satya Nadella, CEO, provided word of these acquisitions during the “Quarterly Highlights” section of the earnings report, and within the specific context of a mention of “high value services” for Azure, and an increasing consumer appetite for them: “To support these high value services in Azure I have prioritized acquisitions such as

  • Greenbutton for big compute
  • Capptain for mobile backend services
  • and, Just in the past few weeks, InMage for disaster recovery for hybrid clouds

Earlier this month we published our opinion on the InMage acquisition. We maintain an Office 365 E3 plan subscription and have experienced, first hand, the need for a robust backup system for our data stored in the cloud, one which can be managed by SMBs without recourse to potentially expensive third party service So we think InMage is a positive addition to Microsoft, and, to both of its cloud offers — Azure and Office 365. We do need to note Amazon AWS claims to be compatible with “many popular disaster recovery architectures” (quoted from AWS Disaster Recovery Cloud Services.

From the short message on the front page of its web site, Greenbutton appears to have been designed to work with Azure since the business commenced activities in 2006. So this acquisition is more about folding what was third party business back into Azure than it is about breaking new ground. From the promotional information still available on the Greenbutton web site, it would appear consumers with applications requiring a very rapid transformation into a cloud-ready condition would want their developers to implement the Greenbutton SDK to hasten the process. The promotional information speaks of flexible capacity planning for IaaS resources as another plus for the SDK.

Finally, Capptain looks like at least part of a solution Microsoft needs to offer to its App Developers as it grapples with how to magnetize more interest from them, and add to their ranks at the same time.

Ira Michael Blonder

© IMB Enterprises, Inc. & Ira Michael Blonder, 2014 All Rights Reserved

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