Adobe Move To Microsoft Azure Signals Closer Partnerships Ahead
On September 26th, 2016 at the Microsoft Ignite conference in Atlanta, Adobe CEO Shantanu Narayen, and Microsoft CEO, Satya Nadella, announced a strategic partnership between the two companies. Constellation sees the announcement from three points of view:
- Adobe makes Microsoft Azure the preferred cloud platform. Adobe intends to move Adobe Marketing Cloud, Adobe Creative Cloud, and Adobe Document Cloud onto Azure over the next few years. Adobe will gain access to Microsoft’s machine learning services through Microsoft Cortana Intelligence suite and also access SQL Server.
Point of View (POV): While Adobe currently uses multiple providers and data centers for its cloud operations, the move to Microsoft Azure will provide a global, Tier-1 environment for work loads as well as security. More importantly, Adobe gains another tool for machine learning. However, access to SQL Server remains questionable as performance issues for SQL Server on Azure remain for heavy transactional apps.
- Microsoft Dynamics 365 Enterprise Edition adopts Adobe Marketing Cloud. Dynamics 365 Enterprise Edition brings three Azure hosted Microsoft Services together with Office 365 and the Office Graph and LinkedIn: Dynamics CRM Online, Project Madeira (financials), and Dynamics AX ERP suite. As the preferred service for Dynamics 365 Enterprise Edition, Microsoft signals that they will resell Adobe Marketing Cloud in Azure. Full details have not been disclosed on yet on pricing and general availability..
(POV): Observers and insiders believe that while the Marketing features acquired from Marketing Pilot will continue to be available from Dynamics CRM, the long term shift will cede Marketing capability to Adobe. As Adobe builds out more functionality in the Adobe Marketing Cloud, expect development from the Microsoft Dynamics team to focus on intelligent business applications that integrate more tightly with Adobe for the marketing function. One of the key features with Dynamics 365 is the ability to license by applications or role based licensing. Constellation believes customers will benefit if this licensing model extends to the Adobe offering.
- Both vendors agree to data model standardization. For marketing and business applications, the two firms greed to coordinate on data model design. Both vendors also agreed to provide shared, extensible data models to customers, partners, and developers.
(POV): Microsoft and Adobe have decided to counter Salesforce.com with a joint coordination on the marketing front and the artificial intelligence front through the alliance. After Microsoft’s failed attempt to acquire Salesforce, the move to align on not only cloud delivery, but also business applications will provide a formidable challenge to Salesforce. Coordination on data models by two significant players will improve standardization of data sets which power the future machine learning and AI services. The overall news is positive for customers and prospects.
Figure 1. Adobe and Microsoft CEOs announce partnership at Microsoft Ignite
The Bottom Line: The Marketing Cloud Wars Heat Up and Commerce May Be Next
While customers have a few big choices in the Marketing Cloud from Adobe, IBM, Marketo, and Salesforce, the partnership between Adobe and Microsoft hints at more consolidation in the cloud wars around marketing functionality. Though this is not the first partnership between the two firms, this alliance is the deepest to date. Adobe gains a strong partner in cloud delivery and enterprise scale and Microsoft gains a key asset in workloads and business applications. Customers may actually benefit from this tighter integration as CRM shifts from core components of sales, service, and marketing into commerce. As digital technologies transform CRM, the long term focus is not on selling products and services, but on delivering brand authenticity and outcomes, or experiences, from campaign to commerce engagements. The ultimate result is either a conversion rate or click through. All Microsoft and Adobe will need now is to add commerce to the mix and customers will have a more complete solution. Why? commerce is the outcome of good CRM and CX not vice versa.
See the video on Future Campaign to Commerce vision below:
Are you ready to try Adobe as a Microsoft customer. Will Adobe customers move more towards Microsoft Dynamics 365? How will you build your strategy with Adobe and Microsoft? Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.
Please let us know if you need help with your Digital Business transformation efforts. Here’s how we can assist:
- Developing your digital business strategy
- Connecting with other pioneers
- Sharing best practices
- Vendor selection
- Implementation partner selection
- Providing contract negotiations and software licensing support
- Demystifying software licensing
Resources And Related Links
- Monday’s Musings: Understand The Spectrum Of Seven Artificial Intelligence Outcomes September 18, 2016
- Tuesday’s Tip: Seven Factors For Precision Decisions In Artificial Intelligence
- Research Summary: [VIDEO] Inside Constellation’s Futurist Framework August 9, 2016
- Research Summary: Infor Partners with Clients to Deliver on Digital Transformation
- News Analysis: Acquisition Brings Salesforce Customers To The Commerce Party
- Monday’s Musings: Data – The Foundation Of Real-Time Digital Business May 23, 2016
- Research Summary: The Algorithm of You – How IoT Transforms and Differentiates Customer Experience May 12, 2016
- Research Summary: HOLMES Puts Wipro in the Forefront of Cognitive Computing May 10, 2016
- Research Summary: Why Live Engagement Marketing Supercharges Event Marketing May 6, 2016
- Research Summary: SAP User Experience-as-a-Service April 27, 2016
- Monday’s Musings: Why Digital Transformation Must Move Beyond The Hiring Of A Chief Digital Officer April 25, 2016
- Monday’s Musings: The Four Personas Of The Modern CMO In A Digital World April 11, 2016
- Event Report: Business Transformation Top Of Mind For Microsoft Envision #ENV16 Attendees April 7, 2016
- Event Report: A New Platform For The Digital Economy #Davos16 #WEF January 28, 2016
- Event Report: The Future Of Jobs From #Davos16 #WEF January 20, 2016
- Event Report: The @Wipro @FT Dinner, Man vs Machine, Does It Have To Be Either/Or? #Davos2016 #WEF #WEFTalks January 19, 2016
- Event Report: The Weekend Before Davos And The Dawn Of The Fourth Industrial Revolution January 16, 2016
- News Analysis: In Search Of Growth Amidst Digital Disruption January 8, 2016
- Tuesday’s Tip: IOT and The Death Of OmniChannel Non-sense In Customer Experience September 22, 2015
- News Analysis: @Oracle Announces Agreement To Acquire Marketing Cloud A/B Testing Firm @Maxymiser August 20, 2015
- News Analysis: @Infor Acquires @GTNexus for $675M August 11, 2015
- News Analysis: Inside Alphabet – G Is For Google August 10, 2015
- News Analysis: Infosys One-Year After Vishal Sikka August 4, 2015
- Event Report: Sage Summit 2015 Shows A Refocus On The Future Of The SMB Customer July 29, 2015
- News Analysis: Inside The Rationale Behind @LinkedIn Turning Off Its CSV Connections Download Tool July 25, 2015
- News Analysis: How @LinkedIn Is Creating A Personal Data Hostage Crisis For Its Users July 25, 2015
- Tuesday’s Tip: Apply For A SuperNova Award – Recognize Leaders In Digital Business July 21, 2015
- Book Summary: Lesson 10 From Disrupting Digital Business – Segment By Digital Proficiency Not Age July 12, 2015
- Book Summary: Lesson 9 From Disrupting Digital Business – Deliver Intention Driven, Mass Personalization At Scale July 2, 2015
- Book Summary: Lesson 8 From Disrupting Digital Business – Democratize Distribution With P2P Networks June 22, 2015
- Webinar Invite: Delivering on Continuity – The Future of Marketing June 15, 2015
- Book Summary: Lesson 7 From Disrupting Digital Business – Humanize Digital With Digital Artisans June 14, 2015
- Book Summary: Lesson 6 From Disrupting Digital Business – Win With Network Economies June 10, 2015
- Product Review: Two Apple Watch Enterprise Apps Launched With IMS Health Life Sciences Wearable Platform June 7, 2015
- Event Report: Zuora’s #Subscribed15 Shows How Organizations Can Power Their Digital Transformation Initiatives May 31, 2015
- Book Summary: Lesson 5 From Disrupting Digital Business – Build For Insight Streams May 31, 2015
- Book Summary: Lesson 4 From Disrupting Digital Business – Know That Data Is The Foundation May 25, 2015
- Book Summary: Lesson 3 From Disrupting Digital Business – Sell The Smallest Unit You Can May 17, 2015
- Webinar Invite: Disrupting Digital Business – The Customer Experience Imperative May 16, 2015
- Quips: Networked Economy Models Emerge Should Verizon Gain Approval To Acquire AOL May 12, 2015
- Book Summary: Lesson 2 From Disrupting Digital Business – Keep Brand Promises In An Attention Economy May 10, 2015
- Research Summary: The Correct Way to Use Customer Data May 6, 2015
- Event Report: Insights Into The New NetSuite At SuiteWorld 2015 May 9, 2015
- Book Summary: Lesson 1 From Disrupting Digital Business May 3, 2015
- Personal Log: Read Chapter One of Disrupting Digital Business April 22, 2015
- Press Release: Registration Opens for Inaugural Constellation Digital Disruption Tour April 16, 2015
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Copyright © 2001 – 2016 R Wang and Insider Associates, LLC All rights reserved.
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales .