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Summary:

The week in cloud: Amazon joins VMware, Google and Salesforce.com as Microsoft partners not invited to the Microsoft partner conference.

Amazon and Microsoft are definitely partners — users can run a bunch of Microsoft software on Amazon Web Services — but the companies are increasingly at odds now that Microsoft Azure has AWS-like Infrastructure-as-a-Service capabilities. That’s probably why Microsoft added Amazon to the list of the dis-invited for its annual Worldwide Partners Conference where Amazon joins Google, VMware, Salesforce.com.

Shutting out competitors from vendor trade shows is nothing new — here’s the VARguy’s story on last year’s WPC no-gos. And earlier this year, VMware refused to let partners Nutanix and Veeam into its partner event. But the supreme example of a spectacular snub came a few years back when Oracle CEO Larry Ellison famously cancelled a keynote by Salesforce.com CEO Marc Benioff scheduled for Oracle OpenWorld. The issue? Salesforce.com is a huge Oracle partner and customer, but also a die-hard competitor in enterprise applications.

So all this invite/disinvite stuff is part of the game. Still these sorts of corporate edicts bear watching because they tell you what the host company sees as its biggest threats.

Per the Microsoft WPC web site:

The following companies and their employees and representatives are excluded from pre-purchasing passes for attending and / or participating in WPC 2014 and affiliated events:

  • Amazon
  • Google
  • Salesforce.com
  • VMware

Microsoft CEO Satya Nadella will speak at the show which Microsoft traditionally uses to fire up thousands of VARs, ISV and systems integration partners about its latest efforts which this year will of course focus on its cloud-and-mobile message.

Structure 2011: Satya Nadella – President, Server and Tools Business, Microsoft

Structure 2011: Satya Nadella – President, Server and Tools Business, Microsoft

 

Whither Rackspace?

News last week that Rackspace hired Morgan Stanley to explore its options really isn’t surprising given the white-hot price competition roiling the public cloud market and how crowded the private cloud arena is getting. Rackspace which has a market cap of $5.13 billion, is dwarfed by rivals. Market caps for Amazon, Google and Microsoft are ( in order) $137 billion, $351 billion and $329 billion. And all those companies have trailing twelve-month revenue that eclipses Rackspace’s (see chart below.) You see the problem.
RAX Revenue (TTM) Chart

RAX Revenue (TTM) data by YCharts

Immediate speculation was that Cisco, Oracle, or AT&T might buy Rackspace to enhance/expand their cloud businesses. Last year, Big Blue kicked the tires on Rackspace but ended up buying SoftLayer instead for $2 billion.

Rackspace president Taylor Rhodes will be on hand at Structure next month in San Francisco so we’ll ask for an update on the company’s progress.

Heroku CEO Tod Nielsen talks PaaS

Heroku CEO Tod Nielsen

Heroku CEO Tod Nielsen

On this week’s Structure Show Tod Nielsen laid out his case as to why companies need Heroku and Force.com PaaSes and Salesforce.com to build and deploy internal and customer facing applications. If you’re strapped for time, his segment starts about 15 minutes into the podcast.

  1. Misleading clickbait headline. Sad and poor.

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    1. cudgelmckickstomp Monday, May 19, 2014

      There is Clickbait, and then there is an appropriate headline detailing the article.

      This ain’t Clickbait.

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  2. Microsoft has announced plans to create their own TV shows, with a dozen pilots in development. Microsoft without Ballmer is as badly deluded as they were with Ballmer. The same old crew is still running the company and they might as well have decided to start selling ice cream.

    Some pundits say that with Microsoft’s new CEO Satya Nadella it’s a changed company. Is that why a software producer decided to make TV shows? Between that and the purchase of Nokia they can have a few more charges that would kill most companies. But they make so much on their enterprise business, maybe they don’t care.

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    1. cudgelmckickstomp Monday, May 19, 2014

      Yes, Microsoft is in such horrible condition financially that doing a little competition with Netflix, et. al., is a terrible thing. Sarcasm.

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    2. They have no idea what they are doing.

      I would hate it if my company was like Microsoft. I mean they have grown every year, they lost money only one quarter in their existence of being publicly traded. Look at them fools, they have too many profitable billion dollar businesses.

      They have been one of the most profitable companies in the world, year after year. I’m glad I’m not Microsoft.

      Judging by your comments I would guess you like forward thinking companies, people with a vision, leaders in the industry. Rock solid companies like WhatsApp.

      One last thought, think for yourself and stop repeating what the dumb tech writes publish. They are writers, and most have no idea what they are writing about. Many simply copy someone else’s thoughts, because they have to get an article out.

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  3. I.T.Y come out of the 1990s and read the news buddy. Microsoft is now a devices and services company. (services include content). Not the software company you knew of.

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    1. John Val Jean Monday, May 19, 2014

      MS has only sold licenses that allowed them to disavow support at any given moment. MS never sold software that one could resale.

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  4. What did I just read? Very poorly written article.

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    1. cudgelmckickstomp Monday, May 19, 2014

      Well I must say your comment was extremely poor considering you didn’t even bother to detail what you felt was wrong with the article. A brilliant exercise in hypocrisy, congratulations.

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  5. Yahoo is far worse, as it censors it message boards of innocuous comments from its registered users.

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  6. Microsoft IS what’s wrong with technology, and proof, crime does pay. Idiots who buy in to it deserve this archaic garbage. The same douch-bags also pay $200. to see a baseball game.

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