) recently signed an agreement, according to which the Windows
Azure Infrastructure Services will be enriched with SAP's business
Windows Azure is Microsoft's cloud computing platform for
building, deploying and managing applications and services through
a global network of its managed data centers. Windows Azure core
services include Media Services, Mobile Services, Cloud Services,
Virtual Machines, Websites and Big Data. It competes with
) AWS Cloud Computing Platform and OpSource Cloud Computing
According to the agreement, SAP will use Microsoft's cloud
computing platform for its business applications, including SAP
Business Suite software, SAP Business All-In-One solutions, SAP
Mobile Platform and others, beginning in the third quarter.
Reportedly, SAP already offers versions of its applications on
Amazon's cloud computing platform, EC2. This agreement strengthens
Microsoft's cloud platform and helps it target customers that are
interested in using both Microsoft and SAP
Additionally, Microsoft and SAP announced another strategic
initiative yesterday to make SAP applications work better with the
cloud version of Microsoft's Office, Office 365, through a new
version of the SAP Gateway product. The German software giant also
plans to develop mobile applications to support Microsoft's Windows
and Windows Phone 8.1.
This partnership is a perfect combination of two giants
Microsoft and SAP; thus helping both to leverage each other's
resources. The SAP building mobile tools will help SAP customers to
build custom mobile apps on their Windows phones, thus expanding
the Windows phone platform. Additionally, the mobile integration is
also a positive for Microsoft since a lot of corporate workflow is
headed in the direction of mobile.
Cloud technology is being increasingly adopted across all
businesses to innovate and drive growth. Gartner predicts that
around $677.0 billion may be spent on cloud services between 2013
and 2016. The software giant, with its solid portfolio and growing
partnerships, should be able to tap this opportunity.
Microsoft remains one of the best positioned software vendors,
given its wide range of products, emerging markets strength,
continued technology deployment at data centers and growth in cloud
computing. The world's largest software maker is optimistic about
its cloud business and expects it to be a major growth diver in the
Currently, Microsoft has a Zacks Rank #3 (Hold). Another
technology stock worth considering at this time is
), carrying a Zacks Rank #2 (Buy).
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