Microsoft strengthens services, devices business

Venkatesh Ganesh Updated - March 12, 2018 at 09:11 PM.

With these, the Seattle-based giant intends to take on the likes of Oracle, SAP, Salesforce and others that sell technology used in enterprises.

Microsoft has taken its next step to strengthen its devices and services business and is looking to add 2,000 customers every month at a time when server computer sales are anaemic.

For starters, Microsoft has introduced a cloud-computing based operating system, which would help a technology user to use same set of applications such as word documents or games across devices such as phones and tablets.

Cloud OS network
Called the Cloud OS Network, it is a worldwide group of 25 cloud computing service providers such as Capgemini, Fujitsu, SingTel and others that will take Microsoft’s offerings to corporates globally.

With these partnerships, the Seattle-based giant intends to take on the likes of Oracle, SAP, Salesforce and others that sell technology used in enterprises, thereby trying to dominate both devices and services business.

As these cloud computing systems require a server computer at the backend to process vast amounts of data and other computing requirements, Microsoft plans to release SQL server 2014, which is used in data centres that form the backbone for banks, financial institutions and other businesses.

Industry watchers point out that companies such as Microsoft, Google, Amazon, IBM and others are coming out with such initiatives as the line between devices used for office and personal use are blurring.

“With concepts like Bring Your Own Device, increasing usage of apps such as field sales workforce training and growing data usage are on the rise and this is prompting companies to look at solutions that address these issues in an affordable and simple manner,” said Srikanth Karnakota, Director – Server and Cloud Business, Microsoft who reports to Satya Nadella, the executive VP of this business, a frontrunner for the global CEO position.

Visual studio Also, Microsoft has released a new Visual Studio (a software coding language) and a new version of Windows Azure software, with added features such as better security, storage and data management.

These improvements help users in accessing different systems for things like payroll data, HR or financial data that require constant updating cycles (to guard against hackers) and maintenance.

“Typically, companies use different software for their sales people and other business functions use another type of software and it is getting to be a nightmare to maintain these,” said Sanchit Vir Gogia, Analyst at Greyhound Research.

While research group Gartner in its Q2 data said that revenues from server market fell 3.8 per cent compared with last year, Microsoft is bullish about growth. “This is a $20-billion business for Microsoft and our customer addition is healthy,” added Karnakota.

venkatesh.ganesh@thehindu.co.in

Published on December 30, 2013 15:52