Microsoft Partners with Adobe to Compete with Amazon in Cloud

Microsoft Corp. (NASDAQ: MSFT) announced a partnership with Adobe Systems Inc. (NASDAQ: ADBE) to offer each others’ cloud computing products to their mutual customers, a move to compete with Amazon’s cloud products.

Adobe will use Microsoft’s Azure platform for its Marketing Cloud, Adobe Creative Cloud and Adobe Document Cloud. At the same time, Microsoft will make Adobe’s marketing platform the favored service for its new Dynamics 365 Enterprise edition. The companies said in a statement.

“This conference marks a big milestone in our partnership,” said Microsoft Chief Executive Officer Satya Nadella, in a speech at a Microsoft conference in Atlanta, where he appeared along with Adobe chief Shantanu Narayen.

This is a good opportunity for both companies. By combining and integrating their products, Microsoft and Adobe can better compete against other cloud giant like Amazon, Oracle, Salesforce and Google. Salesforce competes with Adobo and Microsoft for the cloud-based marketing customers.Microsoft doesn’t have a marketing software competitor, and Adobe doesn’t have a sales software play.

Microsoft has been focusing on its cloud business in the recent year. The company reported revenue from Azure doubled in the pervious quarter. It expected annualized revenue from cloud products would be $12.1 billion.

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