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Microsoft announced its acquisition of MetaSwitch, the company which develops Telecommunications software. This is just after it finished the deal with Affirmed Networks, which also happen to be in the same domain. Last year the tech giant made a multi-year cloud deal with AT&T, one of the largest providers of mobile network. Microsoft is looking aggressive in its communications adventure. The article tries to unveil the motives behind.
Core Strategies
Cloud in favor of others
Microsoft already claimed its commercial cloud business to be the largest in the world. It crossed $38 billion in revenue last year which was marginally ahead then $35 billion revenue achieved by AWS (Amazon Web Services). Results from last quarter, $12.5 billion indicate a higher run rate - $50 billion per annum. Cloud business carry the highest margin percentage of 63% , way above then other segments. No doubts this is the fastest growing segment for Microsoft and its looking to expand it.
SAAS over IAAS and PAAS
If we take a closer look into the commercial cloud of Microsoft, SAAS (Software as a Service) offerings are leading much ahead than IAAS (Infrastructure as a Service) or PAAS (Platform as a Service). Office 365, Teams, Dynamics, PowerBI and many other softwares…
