One of the more interesting problems facing startups today is the double bind that cloud computing offers innovative new software companies.
On the one hand, deploying new innovative software in the cloud is a godsend for startups trying to appease the IT department’s often obstructive attitude toward new software. This is particularly true of anything that requires IT resources to install and manage.
On the other hand, being able to support a newly developed cloud-based offering means building and deploying a cloud infrastructure with the up-time and redundancy that cloud customers have come to expect, before a single contract is signed and a single customer dollar has been put in the bank. It’s a daunting dilemma for those three guys in a garage with a great idea that they’re trying to turn into a software product.
Herein lies Microsoft’s biggest cloud opportunity: Azure has a role to fill as a low-cost, Windows-ready deployment option for new cloud computing offerings. With Azure as the deployment platform, startups can offer 99%-plus up time, failover capacity, and all the other terms and conditions that can make a fledgling startup’s support infrastructure look like a seasoned cloud-based offering.
This isn’t just good for start-ups and Microsoft. The beauty of having an enterprise-class cloud infrastructure at the disposal of software startups is that this partnership will go a long way toward facilitating the uptake of innovative new software inside the enterprise.
The problem is that the innovator’s dilemma in many companies revolves around the shifting roles of IT and the line of business in the acquisition of new capabilities – a shift aided and abetted by the companies that are developing new, exciting software products.
More and more, the line of business has the budget and authority to acquire new software that can provide specific business value to a specific business function or class of business user. If only they can convince IT to let them deploy the software they want.
Armed with that new authority, these user/buyers have become the focal point of much of the industry’s efforts, both among large and small vendors. And while the large vendors enjoy a distinct incumbent’s advantage in selling to the line of business in a company where IT is already a consumer of that large vendor’s systems, smaller companies are at a distinct disadvantage when faced with a similar opportunity.
The problem is that IT tends to be wary of new software from small startups that requires IT support and IT resources. In many cases the line of business user that wants to work with a start-up has to run an IT gauntlet. This gauntlet is intended to preserve the sanctity of the IT department’s security and privacy rules. But in the end it also does an excellent job of short-circuiting attempts to acquire best-of-breed applications from unknown start-up companies.
Here’s where Azure comes in: when Microsoft finally pulls Azure together – and that means making it as truly enterprise-class as it’s advanced billing has promised – the lure of Azure for the innovator will be huge.
The fact that it’s a Microsoft cloud – built on top of the company’s multi-billion dollar infrastructure investment – will attract a lot to developers looking for a secure, safe, scalable cloud infrastructure, and then some. Azure offering of key Microsoft stack services like SQL Server, Communications Services, and other .NET services makes it an attractive development environment for new software startups eager to focus their resources on their specific IP and leave the infrastructure/back office issues to Microsoft.
How soon will Azure start to impact the start-up world – and thereby the consumption of innovative software in the line of business?
Based on what I saw last fall at Microsoft’s developers’ conference, it won’t be until later this year at best. The issue of how fast a complex application can be deployed on Azure needs to be resolved – the demo I saw took minutes to deploy a simple application that displayed “Hello World” on a user’s screen. The ability of Azure to offer service levels that a startup can literally bet its company on remains to be seen as well.
But once these and several other basic issues are resolved, Microsoft has a helluva opportunity on its hands. The innovators/developers desperately need a platform that will off-load a lot of cloud deployment issues to a big partner, and the innovators/consumers need their software to be running in a cloud environment that won’t give IT conniptions.
Azure could be just the ticket to bring these two needs together in a single cloud-based offering. And the sooner they can do it, the better for customers, start-ups, and Microsoft itself.
Huawei’s AI Update: Things Are Moving Faster Than We Think
FEATURE | By Rob Enderle,
December 04, 2020
Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 18, 2020
Key Trends in Chatbots and RPA
FEATURE | By Guest Author,
November 10, 2020
FEATURE | By Samuel Greengard,
November 05, 2020
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 02, 2020
How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 29, 2020
Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 23, 2020
The Super Moderator, or How IBM Project Debater Could Save Social Media
FEATURE | By Rob Enderle,
October 16, 2020
FEATURE | By Cynthia Harvey,
October 07, 2020
ARTIFICIAL INTELLIGENCE | By Guest Author,
October 05, 2020
CIOs Discuss the Promise of AI and Data Science
FEATURE | By Guest Author,
September 25, 2020
Microsoft Is Building An AI Product That Could Predict The Future
FEATURE | By Rob Enderle,
September 25, 2020
Top 10 Machine Learning Companies 2020
FEATURE | By Cynthia Harvey,
September 22, 2020
NVIDIA and ARM: Massively Changing The AI Landscape
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
September 18, 2020
Continuous Intelligence: Expert Discussion [Video and Podcast]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 14, 2020
Artificial Intelligence: Governance and Ethics [Video]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 13, 2020
IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI
FEATURE | By Rob Enderle,
September 11, 2020
Artificial Intelligence: Perception vs. Reality
FEATURE | By James Maguire,
September 09, 2020
Anticipating The Coming Wave Of AI Enhanced PCs
FEATURE | By Rob Enderle,
September 05, 2020
The Critical Nature Of IBM’s NLP (Natural Language Processing) Effort
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
August 14, 2020
Datamation is the leading industry resource for B2B data professionals and technology buyers. Datamation's focus is on providing insight into the latest trends and innovation in AI, data security, big data, and more, along with in-depth product recommendations and comparisons. More than 1.7M users gain insight and guidance from Datamation every year.
Advertise with TechnologyAdvice on Datamation and our other data and technology-focused platforms.
Advertise with Us
Property of TechnologyAdvice.
© 2025 TechnologyAdvice. All Rights Reserved
Advertiser Disclosure: Some of the products that appear on this
site are from companies from which TechnologyAdvice receives
compensation. This compensation may impact how and where products
appear on this site including, for example, the order in which
they appear. TechnologyAdvice does not include all companies
or all types of products available in the marketplace.