Microsoft Azure performed better than its peers
What to expect from Microsoft's 2Q15 earnings (Part 6 of 11)
Azure’s triple-digit growth is the result of Microsoft’s strategy
As we mentioned earlier in this series, Microsoft Azure recorded 140% growth in 2014. Amazon (AMZN) reported 40% growth for the same time period. The probable reason for Azure’s growth lies in Microsoft’s (MSFT) solid cloud strategy.
The majority of the cloud vendors are focused on hosting. In contrast, Microsoft used its cloud to deliver a suite of software products. Microsoft’s cloud-based solutions include the Azure platform, Office 365, and Dynamics CRM. These cloud-based offerings are delivered through Microsoft’s Windows and Windows Phone operating systems. Microsoft also added a SaaS (Software-as-a-service) component to its traditional Azure’s cloud infrastructure.
With Azure, companies can move machines between local Hyper-V based virtualization up to the cloud. It can also move them back. In contrast, Amazon doesn’t have a method of bringing cloud-based machines back in-house. This leaves the user locked in. This isn’t preferred by many organizations.
Also, Microsoft uses the same virtualization platform in its data centers that other companies use. As above chart shows, according to Talkin’ Cloud 100, Microsoft Windows Azure is the most preferred PaaS (Platform-as-a-service) after Amazon Web Services.
Expand the reach of its cloud offerings
In November 2014, Microsoft entered into a deal with Dropbox. It’s a file and video sharing provider. Through this partnership, both of the companies integrated their respective products into their corporate offerings—Office 365 for Microsoft and Dropbox for Business for Dropbox. Dropbox has more than 300 million users. It offers an attractive avenue for the company to acquire new customers for Office 365.
Microsoft had similar deals with Salesforce.com (CRM), Oracle (ORCL), and IBM (IBM). This makes it much easier for companies to build their hybrid clouds across multiple platforms. These partnerships demonstrate Microsoft’s willingness to work with its peers to reach a new avenue for its cloud offerings.
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