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Why Microsoft’s Partnership with Qualcomm Is Worth Mentioning

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Microsoft partnerships would expand and accelerate Azure’s reach

Earlier in this series, we discussed Microsoft’s (MSFT) Azure Stack. Azure Stack, which is an extension of Azure, demonstrates Microsoft’s keenness to harness the benefit of increasing adoption of the hybrid cloud.

In early March 2017, Microsoft partnered with Qualcomm (QCOM) to accelerate Azure’s next-generation cloud services. Azure would use Qualcomm’s Centriq 2400 processor, which some in the industry consider the best ARM-based server chip ever produced. 

The Centriq 2400 processor is manufactured using the 10-nanometer process, which made it possible for Qualcomm to pack 48 processor cores into the chip. Instead of using Intel (INTC) chips, Microsoft could use ARM-based server chips in its Windows-based servers.

In March 2017, Microsoft entered a partnership with chip manufacturer Cavium (CAVM) to use ARM-based data center chips.

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Partnership aimed at lowering costs

Microsoft’s partnership with Qualcomm is seen as a strategic move by the computer giant to strengthen its place in the cloud space and lower its IT costs. To accomplish these goals, Microsoft would use hardware that is not only flexible but also cost-effective.

Price wars and competition present ongoing challenges in the cloud space. The moment Amazon announces a price cut for its Amazon Web Services, Microsoft rushes to do the same by slashing Azure’s price. This level of competition persuaded Rackspace to finally approve its sale to Apollo Global Management.

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