Group No: 1, SAJVA – Sec A
Partnership between Microsoft and Flipkart – A Borrow Strategy
In February 2017, Flipkart, the e-commerce giant from India decided to adopt Microsoft Azure
as its exclusive public cloud platform. Beginning with cloud infrastructure, Microsoft Azure
will add advanced cloud technologies and analytics to Flipkart’s existing data centres. Flipkart
plans to leverage artificial intelligence, machine learning and analytics capabilities on Azure—
such as the Cortana Intelligence Suite and Power BI—to optimize its data for innovative
merchandising, advertising, marketing and customer service. Microsoft will optimize
Flipkart’s existing data centres in Mumbai and Chennai, established in 2016, and make them
more intelligent.
Currently, Microsoft Azure holds s strong second position in the public cloud domain, lagging
behind Amazon Web Services (AWS), according to a report from Forrester research and
Fortune. But there is a battle raging between other major players like Google and IBM to
change the status quo. An alliance with a major customer like Flipkart will help Microsoft edge
past both AWS and Google in terms of brand value and market sentiments. Microsoft’s strong
presence in India, as well as its global scale will set the stage for continued growth and
expansion and a long-term partnership. Both companies, being strong technology based players
will work together to leverage their expertise and make online shopping more relevant and
enriching for customers.
On the other hand, Flipkart is fighting hard to compete with Amazon in India. Hence, Amazon
is a major competitor for both Microsoft and Flipkart, and this is the reason this new alliance
between Flipkart and Microsoft seems so interesting – It is directly targeted towards countering
the aggressiveness of Amazon and to some extent Google’s as well.
But there is more to this partnership than what meets the eye. This is indeed a high level, deep-
rooted strategic partnership, aimed not only at e-commerce market and cloud computing but
beyond that as well. Satya Nadella led Microsoft has been lobbying hard for promoting and
encouraging their Azure platform across the country. Not only Maharashtra citizens’ data
would be stored using Azure’s cloud capabilities, but India’s first driver-less car would be
based on Azure’s connected vehicle technology. Now, Amazon is also aggressive with their
AWS suite of cloud hosting solutions, and last year, they established their 1st data center in
India as well. Google has also announced their intentions of launching data centers in India, to
tap the lucrative B2B market for cloud hosting.
What makes this ecosystem more exciting is the recent announcement of partnership between
Amazon and Microsoft for developing their AI systems, Alexa and Cortana to compete against
Google Now. This proves that technology has truly moved the corporate world beyond
competitive advantage to usher in the era of co-optative advantage.