Microsoft’s partnership with Adobe
So far in this series, we’ve already examined how Dynamics CRM Online and Dynamics ERP contributed significantly to Microsoft’s (MSFT) emergence as a leader in the overall SaaS (software-as-a-service) space, a position that was previously occupied by Salesforce (CRM).
At its 2016 Ignite conference, Microsoft announced a partnership with Adobe (ADBE). Under this partnership, Adobe will shift its Marketing Cloud, CC (Creative Cloud), and Document Cloud services to Microsoft’s cloud computing platform, Azure. Microsoft, in return, will use Adobe’s Marketing Cloud as the “preferred marketing service” for its Microsoft Dynamics 365 Enterprise.
In July 2016, Microsoft announced its Dynamics 365, which encompasses Microsoft’s Dynamics CRM (customer relationship management), and its Dynamics ERP (enterprise resource planning) offerings.
Despite increased participation and subsequent competition from Salesforce (CRM), Oracle (ORCL), and IBM (IBM), Adobe continues to lead the marketing cloud space. By partnering with Adobe Marketing Cloud, Microsoft intends to expand the reach of its CRM and ERP cloud offerings. Although Microsoft leads in the collaboration space, it still lags behind Salesforce in the CRM space.
Microsoft aims to scale high in the cloud
It’s worth noting that Adobe has been a client of Amazon.com (AMZN). Despite posting 100% growth in the cloud space in 2Q16, Microsoft is way behind Amazon in the cloud. Apart from making strategic acquisitions, Microsoft is taking every possible step to scale Azure, which has played a vital role in company’s improved cloud performance.
Microsoft’s luring of Adobe toward Azure shows that Microsoft aims to catch up fast in the cloud and to narrow the gap between itself and Amazon. In early 2016, Microsoft Azure’s managed to make BMW AG, an Azure customer, which continues to be Amazon’s AWS (Amazon web services) customer.