Microsoft's Azure platform is growing at an insane rate, according to the company's recent earnings conference call, which grew 150% from a year earlier. But as Microsoft cuts costs in other areas, such as windows, it has decided to reduce discounts on products such as Azure to boost its profitability. Most recently, the company canceled a discount on promises to use customers for 6-12 months without making more explanations, saying that they would announce new content in a month or so.
Microsoft has been reducing the overall price line for its cloud services, with a view to competing fully with Amazon and Google. Because Azure's upfront spending is so high, it's no big deal to "save some money" for the company. It would also help the service to turn a profit, wouldn't it?
On the other hand, know that if your product is built in the cloud, it is not just a simple jump process. "Big players" should know that – attracting users is far more important than offering long-term discounts.
Finally, Azure is Microsoft's future, but other products, such as Windows and office, will not disappear soon, and the cloud platform is just the best chance for the company to grow revenue.
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