Accenture, Microsoft Team Up for Hybrid Cloud Platform
Accenture plc (ACN) inked a deal with the world’s largest software maker, Microsoft Corp. (MSFT) to expand the global footprint of their joint venture – Avanade Inc. (a Microsoft solution provider). The venture aims at managing and connecting public and private clouds securely around the world.
As per the agreement financial implications of which were not disclosed, Accenture will offer its Hybrid Cloud Solution for Microsoft Azure.
Microsoft Azure is a cloud computing platform, launched in 2010, for creating, deploying and managing applications and services through the worldwide network of its datacenters. It is a cloud platform that helps users manage applications effectively.
A hybrid cloud comprises two or more clouds (private, community, or public) that can be used both locally and off-site and offers the benefit of multiple operation models to its users. The partnership will ensure tighter integration between Microsoft and Accenture clouds, which will help customers to easily and securely move their data between the two platforms.
Benefits of the Alliance
There is a huge demand for apps that cater to Windows, Apple’s (AAPL) iOS, Google’s (GOOGL) Android operating systems and HTML 5. Azure has the SDKs to support development and add scale on any platform. The alliance seeks to do just that by combining Accenture’s operational expertise with Microsoft’s cloud platform and networking infrastructure. Microsoft therefore gets to add capabilities to Azure that could facilitate its adoption at the enterprise.
Accenture customers get to link their managed infrastructure with Windows Azure through the Hybrid Cloud-based platform, thereby enhancing their network performance and reducing costs. Accenture can thereby provide its customers fast and secure cloud-based applications, which in turn will enhance user satisfaction and eventually expand its customer base.
The partnership should therefore be mutually beneficial for both the companies going forward.
The cloud computing market, according to Gartner, is expected to grow at a CAGR of 62% to $160 billion from 2012 to 2015. We believe that the rapid adoption of Accenture Hybrid Cloud Solution will help Microsoft as it pursues opportunities in the ever-growing cloud computing segment.
Conclusion
Though we are unable to estimate the financial benefits, we remain encouraged by the close association that Accenture enjoys with the leading enterprise application software developer.
In spite of regular deal wins, competition continues to increase at a steady pace, especially from companies like International Business Machines. Additionally, a strained spending environment as well as significant exposure to Europe may temper growth to some extent.
Currently, Accenture has a Zacks Rank #3 (Hold).
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