Microsoft: “We’re confident in our strategy”
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Microsoft today said it has sold a large chunk of its cloud computing business to cloud-based services company Mobility Software.
Microsoft also said it plans to spin off its Office business into a separate company, and is working with the two companies on a new cloud service, as well as expanding the size of its existing cloud services portfolio.
Microsoft Chief Financial Officer Peter Klein said today that the sale of Microsoft’s cloud computing operations to Mobility is a “significant milestone” in Microsoft’s business.
“Today’s transaction marks a significant milestone in Microsoft Corp.’s strategy for cloud computing and a significant shift in our business strategy,” Klein said in a statement.
“This transaction has been in the works for some time and we are confident that we will be able to successfully execute on it in the long run,” Klein added.
Microsoft previously said in April that it was working with Mobility to expand its cloud services offerings and said that it had a “strong” plan to launch a new offering in the second half of the year.
Microsoft has already announced plans to sell off the company’s cloud services business, which includes Office and the Xbox platform, as part of its strategy to turn its cloud-first ambitions into a more viable business.
Microsoft’s cloud business is the largest in Microsofts portfolio, accounting for nearly half of its total cloud revenue.
Microsoft’s Office cloud business, meanwhile, is the second largest in its portfolio, with around 20 percent of its overall cloud revenue coming from it.
The deal is part of Microsoft Corp.s efforts to turn cloud computing into a viable business, as it faces increasing competition from Google and other cloud services companies.
Google announced today that it will acquire an enterprise-class software company called Googlers, a deal that will also see Googler employees join Google’s parent company, Alphabet.
Google, which was founded in 2004, is a pioneer in the field of cloud computing, with its cloud platform Google Compute Engine, which has become a cornerstone of Google’s efforts to make its cloud infrastructure as widely available as possible.
Microsoft, meanwhile is one of the most prominent players in the industry, with Windows Server and Office cloud servers that have been used by companies such as Uber and Dropbox.
Microsoft today said it has sold a large chunk of its cloud computing business to cloud-based services company Mobility Software.Microsoft…