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Article News July 7, 2017

5 Things to Consider About Microsoft’s Cloudyn Acquisition

Cloudyn’s reputation is that of cloud cost management with an emphasis on optimization and cross cloud comparisons. If you use or were considering Cloudyn to manage your Amazon Web Services (AWS) or Google Cloud, it’s understandable to be worried about the implications of Microsoft’s recent acquisition of Cloudyn.

As a player in the cloud management space, we’ve also been contemplating what this acquisition will mean. In particular, we’re thinking about 5 potential red flags since the deal:

1. AWS and Google Cloud support will likely take a back seat.

Cloudyn may claim that they are offering multi- and hybrid-cloud support—right now. But the reality is that with Microsoft behind them, Cloudyn’s focus will be on developing new features and functionality for Azure, first. AWS and Google Cloud offerings will, by definition, become lower priority. As AWS and Google Cloud continue to evolve and add services, Cloudyn customers will see a noticeable dip in support here, in favor of more readily-available Azure support. Plainly, it seems inconceivable that Microsoft will want to invest in making the AWS or Google experience better for users.

2. For CSPs, MSPs, and Resellers, Microsoft gains access to Cloudyn’s customers’ usage and billing data.

Equally concerning for service providers is Microsoft’s ability to now access the invoicing and usage data of your clients. With access to end user data, Microsoft could readily leverage it to inform strategic Azure offerings. MSPs and CSPs should wonder how Microsoft might use this proprietary information to gain a competitive advantage.

3. What are Microsoft’s intentions?

Cloudyn has given no formal assurances of support for non-Microsoft cloud platforms. Realistically, however, it is hard to imagine that MSFT will want to continue to enable and promote the use of competitors’ clouds. If there is a problem that affects AWS, does Microsoft benefit from it going undiagnosed? With Microsoft as the key stakeholder, and Azure cloud as the favorite, the incentive for investing in reporting and correcting AWS issues becomes lower priority for Cloudyn. 

Not to mention, Cloudyn was a no-show at the AWS Summit. Or at least, they’ve become noticeably absent. For years, Cloudyn had a prominent presence at the AWS Summits. Just as word of the acquisition became public, Cloudyn was conspicuously missing from this year’s expo floors. As we know, those events are a great way for existing customers to speak directly to management and technical personnel, and vice-versa. This action likely signals that Cloudyn is investing less in servicing AWS customers, to take an Azure-only approach to new business development.

Another interesting question is whether Amazon will even continue to allow Cloudyn to be an AWS Partner. As such, Cloudyn is entitled access to executives, knowledge, and events that AWS would understandably not want to expose to Microsoft. Will this be the end of such a relationship? At a minimum, we would expect AWS to no longer provide NDA roadmap briefings. Cloudyn’s cancelling of their presence at AWS events could foreshadow such an outcome.

4. Will Cloudyn be a revenue generator, or will it become a mechanism to promote Azure?

Azure is in the Number Two spot in the public cloud. Microsoft didn’t acquire Cloudyn to help AWS. If Microsoft is looking to boost the capabilities of their Azure offering, while removing a benefit to AWS, then building Cloudyn’s features into Azure and taking the AWS offering off the market would be a way to gain a competitive advantage. According to SeekingAlpha.com, “The deal creates a foundation for future services such as machine learning-based recommendations that can highlight Microsoft Azure’s offerings vs. the competition.”

This is not theoretical. Cloudyn has been marketed as a way to determine which cloud platform is best for a particular workload, and often recommended AWS or Google Cloud. Will the service be objective now, or will Azure suddenly be recommended more and more? Without autonomy, can Cloudyn be trusted to give an unbiased report?

5. There is a pattern here.

Cloudyn has given lip service to supporting “multi-cloud” going forward, but promised nothing. Indeed they cannot credibly promise anything because Microsoft has the ultimate say. Based on past acquisitions, the writing is on the wall.

Just two weeks ago, Microsoft acquired Hexadite, another cloud technology firm also based in Israel, and within hours they laid off the entire U.S. team. We are already noticing LinkedIn members moving Cloudyn to “past employer” and applications are being accepted on our Careers page. Incidentally, Cloudyn’s web site only shows two full-time openings, both in Israel. They don’t appear to be expanding or reinvesting in their offering.

Now may be a good time to consider other cost management solutions. Acting before problems arise can ensure your organization is covered, and avoid a rushed transition later. CloudCheckr is an ideal alternative for consolidating customer billing and invoicing, proactively optimizing AWS costs, and improving security across your cloud environment—all while avoiding potential risks associated with the acquisition.

A cloud-agnostic solution

Irrespective of the acquisition, CloudCheckr provides a far more comprehensive independent solution. Using historical data and usage trends, CloudCheckr proactively configures your cloud resources for efficient use and optimized purchase recommendations. It’s a data-driven approach to cost management that has saved our customers, on average, 30 percent from their monthly bill.

Start a free trial today to see how CloudCheckr can independently optimize cost and security for your business.

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