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Cloud Businesses Microsoft

Some Companies Choose Microsoft's Cloud Service Because They're Afraid of Amazon (cnbc.com) 101

"In the cloud wars, Microsoft has been able to win big business from retailers, largely because companies like Walmart, Kroger, Gap and Target are opting not to write big checks to rival Amazon," reports CNBC: The more Amazon grows, the more that calculation could start working its way into other industries -- like automotive. In a recent interview with CNBC, Volkswagen's Heiko Huttel, who runs the company's connected car division, said the carmaker chose Microsoft Azure late last year for its "Automotive Cloud" project after considering Amazon Web Services... "If I take a look at all the competitors out there, you see they have capabilities in disrupting you at the customer interface," Hüttel said. "Then you have to carefully choose who is really getting down into the car, where you open up a lot of data to these people, and then you have to carefully choose with whom you are doing business."

Microsoft likes to tout the merits of its cloud technology, but the company is fully aware that taking on AWS, which has a commanding lead in the cloud infrastructure market, isn't just about offering the best services... Microsoft doesn't break out Azure revenue, but analysts at Morgan Stanley estimate that it accounted for almost 10 percent of sales in the latest quarter.

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Some Companies Choose Microsoft's Cloud Service Because They're Afraid of Amazon

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  • I've been looking at service providers, and at this point I would probably go with Microsoft primarily because I want real competition for Amazon in the server space.

    It's difficult though as Amazon has some offerings like Glacier I'm not sure other even really offer - does anyone know of other companies provide something like that, that are also pretty reliable?

    • by Anonymous Coward

      dude, i literally googled "azure glacier competitor" and came with this as the top link

      https://techcrunch.com/2017/08/23/microsoft-launches-a-new-archival-storage-option-for-azure/

      and i didn't even have to type in "competitor," google autocompleted it.

    • IBM Cloud Object Storage is price competitive with AWS, even cheaper for many workloads.

      https://www.slideshare.net/mob... [slideshare.net]

    • There is competition to Glacier. Wasabi offers $5/TB/month, generally with no in/out fees, while Glacier is $4 per TB/month, and there are fees and waiting time. Downside to both is that when you store something, you pay for the object for 90 days, even if you delete it.

      Backblaze B2 also is in the same area, but Wasabi works with the S3 API.

    • The best way is to try, most cloud providers have trial accounts.
      Run your test for a while to check functionality and reliability to have an informed personal experience.
    • by pnutjam ( 523990 )
      Backblaze B2 is pretty competitive with glacier, from a cost perspective. It's also much more user friendly.
  • The only explanation.

  • Ethics do matter (Score:5, Insightful)

    by Anonymous Coward on Sunday March 17, 2019 @12:07PM (#58288420)

    I run a small business, with about 20 employees. We use Microsoft Azure because for our needs there is virtually no difference in service, I like how Azure more easily integrates with Office 365 apps we use, but there's another reason there too. I have known people who worked at Amazon and hate it. I don't approve of how they treat their employees; that is the antithesis of the culture I am trying to build in my own company.

    And to be honest, it's the same with Lyft and Uber. While in some cases a rental car is more expensive than Uber and Lyft, I told my staff I will happily reimburse for a rental car but not for ride-sharing. I think Uber and Lyft both are undermining worker protections while making their revenue by skirting municipal transportation law and Uber's management staff ethics problems is the exact opposite of how i run my company. I'd rather my staff pays more and rents a car or takes a taxi.

    While we're small and that's my own choice on things, to be fair these companies do not publicly act like good members of society and at least for some business owners like myself that's now how I want to do things. I'll put my business first and work with a company I don't agree with if that's the only choice that i have, but in today's markets there's rarely so few choices that you have to work with someone you despise.

    • by cyber-vandal ( 148830 ) on Sunday March 17, 2019 @01:19PM (#58288650) Homepage

      I never thought I'd see the day where Microsoft was the ethical choice.

      • Ne neither.

        It really is becoming a different company under Nadella. Seriously, spend some time reading about how he's changed things at MS in the last 5 years.

        To pick another recent example, I never thought I'd see the day when MS released the Halo games, for PC, on ***STEAM*** instead of trying to make it an Xbox Store exclusive.

        They have finally decided it's better to play nice with others instead of trying to force platform lock-in everywhere. The Gates/Ballmer era is truly dead.

        • by Rob Y. ( 110975 )

          If Microsoft was ever really good at something, it is being a quick follower. They're smart enough to recognize when they've lost - or are about to lose, and turn on a dime - pouring a huge amount of resources into getting on board the next big thing early enough to catch the wave.

          Windows Mobile fans thought it was better than Android (and maybe even iOS), and they were plenty disappointed when Microsoft pulled the plug. But Nadella knew he'd lost - even before their best kit came out.

          They're not playing

          • they don't have the power to not play nice any more.

            So... they ARE playing nice? ;)

            I understand the impetus for change is not coming from some pure bastion of altruism and the goodness of their hearts. If the ruthless Gates/Ballmer tactics were still working, they'd still be doing them.

            And I'm sure they are still doing many evil things, it takes a long time to turn a ship of that size. But changes are definitely afoot. Kindly indulge me and google "nadella culture" and read some articles about how he's c

          • Yep, the reason they started to write software for Android and iOS was because they recognized their software would become irrelevant if they didn't. The PC is no longer king of computing so staying out of smartphones is suicide. Since Windows Phone never managed to capture any significant marketshare they had to port their software to Android and iOS. So competition turned out to be good.
            Alas, they're still very strong on PCs so that allows them to do crappy things to customers in Windows 10 (telemetry, f
      • by mjwx ( 966435 )

        I never thought I'd see the day where Microsoft was the ethical choice.

        I get the joke... But MS isn't evil by intent, it's evil as a matter of consequence. MS just want more money, so their evil stems entirely from that. If they wanted to be truly evil they'd have all kinds of dastardly things like forcing us to use Sharepoint to access Exchange.

        • by pnutjam ( 523990 )

          If they wanted to be truly evil they'd have all kinds of dastardly things like forcing us to use Sharepoint to access Exchange.

          Your a monster... it's not enough to put imaginary people in your head through such an tribulation, now you've done it to ones in my head?!

    • I have known people who worked at Amazon and hate it

      I work with azure and I hate it - does that count?

  • by williamyf ( 227051 ) on Sunday March 17, 2019 @12:08PM (#58288422)

    Microsoft's Azure Cloud offerings can be used Public, Private and true hybrid cloud types. Unlike amazon, which is 99.9% public cloud at the moment. And google, which is 100% public cloud.

    Which means that, as your strategy shifts, you can go from Public cloud to hybrid clud to private clud with the same software stack.

    Many companies are afraid of cloud technologies in general, and even more so about public clouds, and use this technology out of necesity, rather than desire. Other companies like the cloud, but would be deligthed to get everything inhouse if, for examle, what started up as a small project, grows so large that is cost-effective to do so (think DropBox).

    While is true that there are SW layers that let you deploy in a "Cloud stack agnostic" fashion, those add a layer of complexity, appeal to the lowest common denominator, and show a technological lag.

    Realisticaly, only Azure and OpenStack* can claim an uniform software stack between public cloud, private cloud and true hybrid cloud...

    * There are others, like VMware, but their public cloud offering is marginal at best.

    • Microsoft's Azure Cloud offerings can be used Public, Private and true hybrid cloud types. Unlike amazon, which is 99.9% public cloud at the moment.

      AWS has an entire private 'internet', if you will, that's not public. My company uses it for HIPAA data and medical transactions. I don't know the percentages, but I'm pretty sure it's way more than 0.1% of their cloud.

      • by pnutjam ( 523990 )
        We too have a "private access" section of our cloud, parent was talking about running the cloud on-prem.
    • by guruevi ( 827432 )

      The point of the cloud is and always should be that you are provider-agnostic hence you don't use the plugs that AWS or Azure provides but write your own middleware for it or use something more generic (eg SSH w/ something like Ansible) to provision.

      Modern implementation have forgotten why hosted virtual servers were attractive to begin with and locked themselves into Microsoft, Oracle and Amazon all over again.

    • by williamyf ( 227051 ) on Sunday March 17, 2019 @04:10PM (#58289306)

      brunes69 mentioned IBM, while an AnonCW mentioned Amazon Outpost, and JustAnotherOldGuy mentioned Amazon's VPC for HIPPA use*. And some other comments, so let's Clarify.

      IBM's cloud is based on VMware and Openstack, both of which I mentioned in my comment. Problem is, IBM's public cloud offering is so small, like a drop in (huuuuge) bucket.

      Some cloud providers offer you a "Cloud on colocation" where the servers are used only for your workloads, but is still servers on colo with cloud software installed, not a private cloud. A VPC is even worse, as your private cloud is running on servers were other workloads from other tenants are running, just that the network addressing and other things make it seem like a private cloud to you. That qualifies even less as private or true hybrid cloud.

      Amazon lets you have a very specific box in a very specifc configuration for a very specific subset of workloads on premises. That's Amazon Outpost, and that can hardly be called a true hybrid cloud, let alone a private cloud.

      The thing is, the Openstack public cloud market is highly fragmented, and OpenStack is a beast to set up and administer in your Datacenter (I shall know, I am technical trainer for OpenStack in the telco space), and the different parts of that Voltron are not cohesive enough.

      Meanwhile Microsoft's Azure is the second largestpublic cloud in the market. And believe it or not, if you do not want public Azure cloud directly from microsoft (say, because you do not want to or can not deal directly with an american corporation), you can get it from telcos and partners. And if you get it in your private datacenter, you will find that the pieces are more cohesive and easier to administer than Openstack (but all of them still way behind of VMware, dare I say, the gold standard).

      In the public cloud, the three biggest players are Amazon, Microsoft and Google (in that order). All the others are dwarfs in comparison (IBM included). The technologies that underpin those clouds are whatever propiertary stuff Amazon did to Xen (and moving away from xen), whatever stuff google is using, and Azure. Then you have a lot of small fish using Openstack (with KVM), Oracle (another small fish) using Xen, VMware doing deals with players big and small all over the place but reamining a small fish in the public cloud stakes nonetheless.

      As I said, Amazon lets you have a very specific box in a very specifc configuration for a very specific subset of workloads on premises. Also gives you a VPC, or even a "Colocloud". So does IBM. But that does not qualify as private cloud or true hybrid cloud.
      Google gives you nothing on premises. But of course they offer you a VPC.
      Oracle hangs on in cloud because of predatory pricing if you run their software on other clouds, public or private.
      Only Microsoft and openstack can claim a large public cloud presence (big in the case of microsoft, in the case of openstack, a really large shoaling of small fish) coupled with the posibilities of running your cloud on premises or true hybrid).

      * for OldGuy: I am not a lawyer, and probably you are not one either. But your company's tech dept. should double check with your company's legal dept. if getting your HIPPA stuff in AWS (be it in public, colo cloud or VPC) is legal or not. The tech team probably checked before the project got started, but is good to re-check regularly. I know amazon is lobbying extensively for it to be legal, and I am a big proponent of cloud in general and public cloud in particular. But laws are somethinmes weird for us engineers, and maybe, just maybe, some of that HIPPA stuff shall not be in a VPC or Colo cloud. Also, laws change from time to time, and people (even lawyers) make mistakes. With things like HIPPA, sarbanes-oaxley and financial info, is best to err on the side of caution from the legal point of view. I hope is all legal and no changes are needed. JM2C, YMMV.

  • insert free advert for MICROS~1
  • by JustAnotherOldGuy ( 4145623 ) on Sunday March 17, 2019 @12:25PM (#58288478) Journal

    Not buying cloud services from Amazon is NOT going to keep them from disrupting your business or intruding on your business. "Who buys from us" is not a factor in how Amazon makes decisions as to what they're going to do next. And I'd bet that goes for Google and Microsoft too.

    You should buy the best cloud service that fits your mission, period. If that's Amazon, great. If it's Azure or Google, great.

    Buy whatever makes the most sense for what you need to do, and then move on to the next thing on your list.

    • by Solandri ( 704621 ) on Sunday March 17, 2019 @01:18PM (#58288648)

      Not buying cloud services from Amazon is NOT going to keep them from disrupting your business or intruding on your business.

      Actually it will/did. Until the last couple years, AWS was what was keeping Amazon afloat [zdnet.com]. Amazon's online retail business was losing money. So Amazon was using profit from AWS to bolster and support their online store. Their online store is finally beginning to make some profit, but the bulk of their operating income continues to come from AWS. It made more money than their store last year [zdnet.com], despite having less than 1/8th the revenue.

      So it would've been stupid for competing online stores to use AWS. They would've literally been bankrolling their competition. I get what you're saying about picking the best product. It works when the company you're paying keeps financial and operational separation between their divisions (e.g. Samsung Semiconductor giving preferential treatment to Apple over Samsung Mobile because Apple was paying them more). But Amazon was literally using money made by AWS to bankroll the growth of the Amazon store.

  • If you want to be able to survive even foreseeable problems, you have to have a migration strategy away from whatever cloud provider you choose. Picking not-amazon is a reasonable strategy for keeping your cloud provider's interest, so long as you can pick another not-amazon (or Amazon, for that matter) if your current provider goes south.

  • Microsoft has NEVER been trustworthy or not to be feared. Amazon might not have started that way, but has come to the point where it is neither nice nor trustworthy.

    • Microsoft has NEVER been trustworthy or not to be feared. Amazon might not have started that way,

      Amazon was patenting "One Click" back in the 90s. Now I know some people will say "that was not obvious," but it was obvious.

  • choosing to bunk with the devil because they are afraid of the super-devil

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