How Is Microsoft Making Money From Its Arch Rival Google?
Gartner recently rated Microsoft as a close second to the leader of cloud market, Amazon. In the meanwhile Microsoft COO Kevin Turner views Google, as Microsoft’s biggest competitor in cloud, and market leader Amazon as half as big a threat. In his words, he says, “If you think about Microsoft Azure and Windows Server and the opportunity we have there, the way I like to think about this is you really have about 2.5 companies in all of technology from a multinational standpoint that have hyper scale cloud. Google certainly has a hyper scale cloud and I count Amazon as a half. And the reason I count them as a half is they're not completely global at this point and they don't have the functionality and redundancy.”
What is brilliant about this program is that Microsoft customers can use Google's cloud, but they still have to buy Microsoft software the old-fashioned way, by licensing it, in addition to the fees they pay Google to rent Google's software. This is one of many smart partnerships Nadella has done with huge rivals in order to bury the hatchet.
Meanwhile, Google gets another foothold into that multi-trillion enterprise IT market.
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