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Microsoft knocked it out of the park today, reporting that Azure revenues grew 50% YoY (analysts were expecting 41%). CEO Nadella said that "What we are witnessing is the dawn of a second wave of digital transformation sweeping every company and every industry." They don't break out Azure revenues specifically, but it's a significant share of their "Intelligent Cloud" segment which raked in almost $15 billion last quarter. Azure, by itself, must have grown in the billions of dollars when compared to the quarter last year. So much for the law of large numbers :)

I think this bodes well for some of our companies. When an enterprise starts using Azure, they need services like security and performance monitoring, and they'll find DataDog and Crowdstrike right on the platform.

Last September, DataDog said "We are excited to announce a new partnership with Microsoft Azure, which has enabled us to build streamlined experiences for purchasing, configuring, and managing Datadog directly inside the Azure portal. This first-of-its-kind integration of a third-party service into a public cloud provider reduces the learning curve for using Datadog to monitor the health and performance of your applications in Azure."

You may recall that DDOG shares jumped 12% on the day following that announcement.

Crowdstrike offers their Falcon for Azure security service, which they say "simply and effectively protects all Microsoft Azure workloads, including containers". In addition to this, they launched a free tool to protect MS Active Directory last month. It's very likely that many of the droves of customers who migrated to Azure last quarter signed up for Falcon, especially after the Solar Winds attack last month.

Cloudflare's Content Delivery Network (CDN) works well with Azure, and they promote the integration pretty heavily. Compared to Azure's own CDN, Cloudflare scores higher with customers for security features like DDOS protection, geo-blocking, and SSL cert management, as well as its ease of use.

Snowflake offers its cloud data warehouse on Azure. Many customers prefer Snowflake to MSFT's native DW, because Snowflake was built from the ground up as a cloud-first platform.

MongoDB's wildly popular Atlas database service launched on Azure back in Sep 2019. On that day, Microsoft said that "Today's announcement will make it even easier for customers to consume Atlas on Azure through the Azure Marketplace. We are committed to working alongside partners like MongoDB to give our joint customers best of breed choice in technology that meets their unique business demands."

So, we'll see what happens, but I liked the numbers that MSFT reported today, and I think it's a good sign of things to come in the cloud sector.

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