Microsoft Acquires Deis

Data Investing
Data Investing

In an effort to keep up with Google and Amazon, Microsoft has acquired Deis, an open source software company.

Microsoft (NASDAQ:MSFT) is making sure its competitors know it’s still a top contender in cloud services.
On Monday (April 10), it was announced that the global leader in software had acquired Deis, a start up company with a mission to make container technologies simple for developers. No financial terms were disclosed in the post.
As such, some say the acquisition puts Microsoft in a good position to rival against Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) as a leader in cloud computing.
With the acquisition, some say Microsoft’s open source tools and cloud service, Azure, will greatly benefit from the way Deis aims to simplify the way applications are designed and operated. In Microsoft’s announcement, the company’s executive vice president of Cloud and Enterprise Group, Scott Guthrie, wrote that “Container technologies let organizations more easily build, deploy and move applications to and from the cloud.”

“With this increase in agility and portability, containers are helping to make applications the new currency in the cloud,” he continued.
Similarly, Brendan Burns, a figure in Microsoft’s cloud division that played an integral part in the acquisition, said in the Wired article that Deis takes something that’s complicated and finds a way to make it approachable.
“[So that] people can think about it at the concept level rather than a deep technical level,” he added.
According to CNBC, the company’s Azure cloud is a “distant second” to Amazon Web Services (AWS), while other companies are also pushing to make a name for themselves.
“With all of the open source projects that are all the rage with developers, you have to have the offerings to cater to that if you want to attract them to your cloud,” John Vrionis, a partner a Lightspeed Venture Partners told CNBC. “If developers start in AWS and get comfortable, they’re not going to even think about Azure.”
That said, Gabe Monroy, CTO of Deis, wrote in a blog post that, “Deis has always been focused on building and contributing open source technologies that make life easy for developers and operators to build and run application.” He further states the company looks forward to making Azure “the best place to run containerized workloads.”
Looking ahead, it’s estimated that the cloud computing industry will be worth $383 by 2020. In 2017 alone, the market is expected to grow by 18 percent, according to Forbes. As mentioned above, Amazon’s the current cloud market leader, with Microsoft Azure in second and Google Cloud Platform in third.
In that regard, it will be interesting to see if Deis will be able to push Microsoft’s cloud ahead.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.


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