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Microsoft To Offer Azure Credits To Compete With IBM, AWS

Amanda Parker writes Google, AWS and IBM already offer incentives for start-ups to join them. Microsoft is trying to lure start-ups and SME's to its Azure profile by offering them $500,000 in Azure credits. The deal, announced by Y Combinator, is only available to Y Combinator-backed companies and will be offered to the 2015 Winter and future batches. In addition to this, Microsoft is also giving Y Combinator start-ups a three years Office 365 subscription, access to Microsoft developer staff and one year of free CloudFlare and DataStax enterprise services. The move signifies Microsoft's desire to compete with Amazon Web Services and Google, both of whom already offer credits and freebies.

29 comments

  1. I talked to the wife. by Anonymous Coward · · Score: 2, Funny

    I talked it over with my wife and she just doesn't like that color.

    Sorry Microsoft.

    Maybe change it to mauve.

  2. Now it is Nadella's turn to ... by 140Mandak262Jamuna · · Score: 1

    ... to do the "developers developers developers ..." dance. Or is he going to get creative and do "start ups ... start ups... start ups..."

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    1. Re:Now it is Nadella's turn to ... by Njorthbiatr · · Score: 1

      Nadella's developer dance was making .NET open source.

      You can't blame Microsoft for trying to catch up to the rest of the market and get a foothold.

    2. Re:Now it is Nadella's turn to ... by Anonymous Coward · · Score: 1

      ...and like Ballmer he's not delivering. Sure, the few bits of .NET to make ASP.NET MVC websites are open (yay, yet another MVC framework!) in hopes to make it back in azure hosting, and there's a free community edition of VS which most people can't legally use.

      But meanwhile... They keep destroying their core product (Windows) to sell tablets, pushing the "cloud" i.e. rental options that makes it expensive to use, pushing "apps" nobody wants of as the future (giving an extra reason to people with "simpler" needs to ditch Windows completely), while overall fucking all the devs over. You developed for older Windows Mobile? No forward compat for you! You used Silverlight? LOL! You wasted time no Windows RT? Discontinued! XNA studio? gone. Every new thing they make quickly gets killed.

      I can't wait for them to kill all of their stupid phone-shit-on-desktop trend to die too.

    3. Re:Now it is Nadella's turn to ... by art123 · · Score: 1

      A few bits of .NET?

      Microsoft is providing the full .NET server stack in open source, including ASP.NET, the .NET compiler, the .NET Core Runtime, Framework and Libraries, enabling developers to build with .NET across Windows, Mac or Linux. The biggest hole is client side .NET (WinForms, WPF). But for the target audience of building web apps, where their Java competitor is strong, it is a good start.

      Visual Studio Community Edition can be used by any one-to-five person developer shop (unless the company has more than 250 PCs or $1 million in annual sales). Can also be used by anyone, regardless of company size, if creating open source code.

    4. Re:Now it is Nadella's turn to ... by Anonymous Coward · · Score: 0

      You say full then you immediately contradict yourself: no winforms and no WPF, which is by far what it's best at! So you end up saying it's good for exactly what I said: web apps (ASP.NET MVC and the like). The problem is, most of us aren't interested in that as we already have a plethora of free languages, compilers, frameworks, libraries, web servers and more exactly for that, which can also run on free OS'es, with free databases and more. I just don't see a reason to lock myself into the MS stack for that, and I don't really see any real advantages to it, even as a C# dev.

      And yes, community edition is pretty much useless outside of open source. Unless you live in the third world, even small startups will easily make 1M$+ in sales per year (even if that might mean zero profit). You're basically agreeing again...

  3. Developers!! Developers... Developers?? by JoeCommodore · · Score: 1

    Please, come back!

    --
    "Enjoy what you're doing! If it becomes drudgery, you're doing it wrong!" - Jim Butterfield
  4. no by Anonymous Coward · · Score: 0

    just no.

  5. Is IBM a real cloud hosting competitor? by leonbev · · Score: 2

    I'm not sure why IBM is listed as being a major competitor to AWS and Azure for cloud hosting. I always thought that Rackspace,Google, and Salesforce.com were bigger players in that arena.

    1. Re:Is IBM a real cloud hosting competitor? by Anonymous Coward · · Score: 1

      I'm not sure why IBM is listed as being a major competitor to AWS and Azure for cloud hosting. I always thought that Rackspace,Google, and Salesforce.com were bigger players in that arena.

      They are since they got softlayer

    2. Re:Is IBM a real cloud hosting competitor? by qbzzt · · Score: 2

      IBM recently bought SoftLayer, and is now offering a cloud with a bunch of additional enterprise services at https://console.ng.bluemix.net... .

      Required disclaimer: While I am an IBM employee, my opinions are my own and do not represent the IBM corporation. In fact, being a publicly traded corporation, I don't think IBM can have opinions other than "it is good to fulfill one's fiduciary duties".

      --
      -- Support a free market in the field of government
    3. Re:Is IBM a real cloud hosting competitor? by dbIII · · Score: 1

      I'm not sure why IBM is listed as being a major competitor to AWS and Azure for cloud hosting

      Because unlike Azure they can do leap years.

      Too Zune?




      Seriously they've been running other's people stuff on machines they own since before Sun said "the network is the computer", let alone before the "cloud" name turned up. Others may have more volume but IBM have not left the game they have been in for a long time, and they have not had such public stuffups as two leap year bugs in a row.

  6. so to highlight how this has gone so far. by nimbius · · Score: 2

    at first, microsoft offered Azure to the general public with a free trial and a smile. AWS, VPS, dedicated hosting, and shared hosting already existed, and offered an endless selection of linux and bsd whereas microsoft offered exactly 1 linux image and it was nearly double the cost of windows.

    Then microsoft buttered up corporations with free azure credits in their licensing fees. Refusal of the credits meant an increase in fees, so most corporations took them only to realize they werent very applicable. Hosted exchange an in-house microsoft products were still in most cases more established and cheaper than Azure. They afforded greater accountability and control over the reboot cycle as well. Microsoft recently started revoking, quietly, these credits.

    now, like a drunken pimp, microsoft is peddling azure to...startups. Most of these companies are actively developing and using technologies that scale far beyond Windows and traditional servers, and always have. What for microsoft is a new offering is something these companies have already established api code and configuration automation with. Yes, you can convert from X provider to azure easily, but microsoft hasnt offered a compelling reason why you should outside of pricing. And then theres the glaring problem of portability and relevance. Microsofts other internet offerings, bing and explorer, no seasoned developer or devops engineer can approach on a full stomach. decades of lock in, embrace extend extinguish, and the fond memory of the last pain-in-the-ass bug they had to code around for IE because it was a "market leader" is largely enough to make them skip it. Microsoft hasnt given any compelling evidence to suggest they wont lock in the infrastructure you build, but they have provided a wealth of historical evidence to suggest they plan to.

    --
    Good people go to bed earlier.
    1. Re:so to highlight how this has gone so far. by DaHat · · Score: 1, Informative

      so most corporations took them only to realize they werent very applicable.

      Not applicable in what way? I've got an MSDN subscription and the $150 of free credits I get each month are quite straight forward and applicable... and I use them.

      Microsoft recently started revoking, quietly, these credits.

      Citation?

      now, like a drunken pimp, microsoft is peddling azure to...startups.

      Only now? I had an old co-worker who used their BizSpark program to get a good deal of free Azure credits to launch a startup with some friends a few years back.

      Alas I've got better things than to do to continue to respond to your screed which does not seem based in much reality.

    2. Re:so to highlight how this has gone so far. by art123 · · Score: 1

      Microsoft says that 20% of their running VMs are Linux (so I guess that "1 linux image" must be a pretty good one :-)).

      But who cares about IaaS? There is nothing too special about spinning up VMs with different resource allocation. Lots of competitors.

      Azure's real appeal is PaaS.

  7. Say what you will about MS... by HerculesMO · · Score: 1

    But their enterprise focus is extremely helpful. I manage our cloud relationships and dealing with MS as a business entity, and especially when it's concerning legal and regulatory matters, Microsoft is a *pleasure* to work with. Amazon on the other hand, is totally unavailable and seems to want to cater only to companies that start out in basements. That's fine, but given MS' focus on 'cloud' as a whole I don't see it being too long until MS catches up to AWS and even surpasses them.

    On the licensing front they are miles ahead; they offer Oracle, SAP, and other things that AWS does not in prebuilt VMs. And to be frank... I have no issues with the service as I can compare and contrast them with AWS which we also use heavily. Only downside is that RedHat isn't offered at Azure, but given the per hour/minute licensing costs we've opted to look more heavily into CentOS.

    --
    The price is always right if someone else is paying.
    1. Re:Say what you will about MS... by dbIII · · Score: 1

      Microsoft is a *pleasure* to work with

      So long as you are willing to put up with sixteen thousand student and academics without email for a week and a half until the trouble ticket makes it through the queue and they finally fix their internal DNS stuffup in their hosted Exchange mail farm. That one was fun to watch from the outside trying to send mail in. I think it's very likely that people did get fired for choosing Microsoft that time.
      Of course you'll probably point out that such a situation was a small customer of no consequence and not "enterprisy" enough - which is certainly the line MS took that time.

  8. Not new by Richard_at_work · · Score: 1, Informative

    Microsoft has long had several programs that gave away Azure credits:

    Website Spark - you got about £35 a month in credits.
    BizSpark - you got about £105 a month in credits.
    BizSpark Plus - you got anything from £200,000 in credits in the first two years, to all of your Azure paid for for that period, depending on how hard you pressed your MS rep.

    Been there, done all of the above three options. BizSpark Plus has been around for more than 5 years.

  9. Microsoft's track record by Anonymous Coward · · Score: 0

    Shouldn't the history of how Microsoft acts when it achieves hegemony in a market weigh on any decision to use their services? A "death before Microsoft" attitude isn't rational, of course, but throwing your lot in with them should be very carefully considered.

    If Azure managed to put all the other cloud providers out of business (and that has always been Microsoft's goal in every market, much more so than profit), you would end up with a cloud service locked into Windows that was just cheap and high quality enough to keep you from switching. Since switching would face the massive barrier of moving off Windows, Office, Outlook, and the rest of the MS ecosystem, the cloud service wouldn't even need to be all that cheap or high quality.

    Similar situation with Windows phones and tablets. If Windows replaced Android, you'd end up with stagnation and devices locked to the Windows desktop OS in whatever ways possible, just good enough to keep you from giving in and accepting whatever Apple has decided you can buy (as the strength of Windows has always been the variety of hardware available, verses Apple).

    Usually, when dealing with a business, you can trust them to make every effort to profit off you. With Microsoft, you don't even get that. Their goal has always been to trap you. That should always be kept in mind when dealing with them.

    1. Re:Microsoft's track record by Anonymous Coward · · Score: 0

      If Azure managed to put all the other cloud providers out of business (and that has always been Microsoft's goal in every market, much more so than profit), you would end up with a cloud service locked into Windows that was just cheap and high quality enough to keep you from switching.

      But Azure also runs Linux. You arent paying for the OS license you are paying for the usage regardless of the operating system. If they limited it to only Windows then obviously all the Linux users (and yes in the server space there are a *lot* of them) would be kicked out and that would be more than enough to make an alternative service viable.

    2. Re:Microsoft's track record by Anonymous Coward · · Score: 1

      If you went by Microsoft's track record we wouldn't have a mostly standards-compliant browser, they wouldnt have killed off proprietary Silverlight in favor of HTML5, we wouldnt have the open sourcing of .Net, there would be no support for Linux on Azure, Office wouldn't be available on Android, the Surface wouldn't exist, Microsoft wouldnt be co-operating to build open source Docker for Windows ... the list goes on and on.

      I know there are a lot of people here that are still stuck on the idea that the Microsoft of the 90s is the Microsoft of today, that feel personally hurt by the actions of 90s Microsoft and have just never been able to move on but honestly get with the times. Things change.

    3. Re:Microsoft's track record by Anonymous Coward · · Score: 0

      You tell that to the many people that Microsoft screwed up in the 90s with their heavy handed, monopolistic practices. Microsoft has a lot of atonement to do.

    4. Re:Microsoft's track record by Anonymous Coward · · Score: 0

      You listed a lot of things that happened in markets where Microsoft lost (or never had) control.

      History suggests that all those things would change if Microsoft gained or regained control. If they had 95% of the browser market again, there would be a bunch of proprietary HTML5 extensions, if they had a large majority of the cloud market, Azure support for non-MS operating systems (especially Linux) would degrade to near-unusability over time, then be killed because "no one uses it." If they had any significant chunk of the mobile market, the same thing would happen to Office for Android.

      Your list proves that when Microsoft has competition, they are capable of behaving decently. As I said, "death before Microsoft" is not a rational attitude, but it is quite rational to avoid a company has been proven capable of acting as Microsoft has, and it is even reasonable to add "encouraging Microsoft to behave decently" as a minor argument in favor of using any of their competitors.

  10. Yet Azure is more expensive and harder to use. by Anonymous Coward · · Score: 0

    So really once you learn that you realize that Azure just is not safe to use for your company.

  11. Usual Arms Race by Anonymous Coward · · Score: 0

    Microsoft went to the market with $60K, then AWS and Google countered with $100K, then IBM joined with $120K... it's not a desperate move, otherwise they are all desperate. It's just business, and right now it's an arms race of who can make a bigger number. It's not very different to a $0 phone plan with $100000 worth of features included, what you actually get for those credits is what counts, but the market is still maturing so they just go 'number sounds bigger, I'll take that'. It'll change. This stuff will phase out and the conversations will be about benefits, channels, partnerships, etc.

    1. Re:Usual Arms Race by ThatsMyNick · · Score: 1

      Microsoft went to the market with upto $60K, then AWS and Google countered with upto $100K, then IBM joined with upto $120K

      FTFY. You will not get the max credits, it really depends on your business needs. The ceiling is meaningless. I doubt most people have a business case for $60K credits.

  12. Bing by NewYork · · Score: 1

    They seems to be replicating BING business strategy

  13. Typical Microsoft by Anonymous Coward · · Score: 0

    One of the biggest problems we found with Azure is their firewall fiddling with your packets. Their service looked promising in terms of price and performance, then we found they were stripping tcp options and not allowing ICMP. There's a couple of long threads with lots of annoyed developers who have had to walk away.
    Typical Microsoft.