Microsoft Corp. and data center services company Rackspace
Hosting Inc. are teaming up to ease customers over barriers to
using Azure, Microsoft's cloud computing service.
Under an alliance set to be announced Monday, Rackspace will
help companies start using Azure and guide them on how to squeeze
the most for their money from Azure's processing, data storage,
databases and other services. Rackspace will help solve service or
security problems and help companies combine Azure with their own
computing facilities.
The pact is aimed, in part, at addressing the tangle of
technology headaches many businesses encounter as they shift from
on-premises computing to cloud services. Analysts say such issues
are among the biggest barriers holding back companies from using
shared processing and storage over the Internet.
Rackspace is known for top-tier technology support and customer
service. Its reputation could give Microsoft a leg up as the
software giant tries to catch up to market leader Amazon.com Inc.'s
Amazon Web Services.
"This is a way for them to enlarge the market for Azure
customers," said Rackspace CEO Taylor Rhodes.
The deal adds to a list of strategic alliances forged by
Microsoft CEO Satya Nadella that make it easier for companies to
use Microsoft services, even alongside those of competitors. In the
17 months since Mr. Nadella took the top job, he also has struck
deals with file-sharing startup Box Inc. and rolled out version of
Office software bundle for Apple Inc.'s iPad to make Microsoft
products work together with other popular business tools.
The alliance also is a big step for Rackspace, which has been
forced to revamp its business strategy to avoid competing directly
with cloud services offered by deep-pocketed tech giants such as
Microsoft and Amazon.
Mr. Rhodes said the partnership with Microsoft is the first
between his company and a major "public" cloud provider, referring
to companies like Amazon, Google and Microsoft that offer access to
shared computing facilities rather than operating private
facilities on their customers' behalf. Mr. Rhodes said Rackspace is
open to striking similar arrangements with other public-cloud
firms.
Customers that use the Rackspace-Azure service can pay for Azure
computing plus Rackspace support in a single bill from Rackspace,
or they can opt to pay separately for Azure and Rackspace
services.
The companies plan to announce their new alliance on Monday at a
conference for Microsoft and its partners.
Write to Shira Ovide at shira.ovide@wsj.com
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