"This is good and strong news from Microsoft, as they grow along with competitors in the cloud space," Kagan added. "This is an exciting time... The hybrid cloud system is one of the key areas companies are pursuing. That means providers like Microsoft have to make it easier to use. Microsoft took a big step in that direction with this announcement and that's good."
Microsoft also has a lot of cloud competitors, including IBM, AWS and Google, Kagan said.That means to stay competitive, Microsoft will have to continue to push hard in this market.
"Just remember," he added, "this is just one step in a very long journey."
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