Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Why Microsoft continues to embrace the freemium model

Paul Rubens | Feb. 4, 2016
Microsoft's business strategy for the cloud appears to amount to this: ‘Be more like Apple.’ Here’s why that approach works.

Microsoft's Wes Miller says Microsoft is employing three tactics to attempt to overtake AWS and become the leading could platform.

The first is to make Azure the best cloud platform for any system, not just Windows. "Linux running on Azure is a very big deal.  So is Docker on Azure," he says. "This is a huge difference from the Microsoft of the past."

The second is to make Azure a cloud service that is developer focused, he says. "Microsoft is working very hard on its developer story, deploying apps using an IDE and so on. AWS is really a commodity."

The final tactic is making Azure part of a best of breed hybrid story. "For a Windows Server 2016 shop, Azure rather than AWS will very much be the obvious cloud to use," Miller says.

Microsoft may want to be more like Apple in the cloud, but when it comes to hardware, the two companies are likely to remain very different. Apple gets about 63 percent of its revenue from its iPhone, while Microsoft's phones continue to languish. "I fully expect that Microsoft will continue to beat the drum for hardware, Miller concludes, "but when it comes to phones I think it will be a very rough year for the company."

 

Previous Page  1  2  3 

Sign up for CIO Asia eNewsletters.