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 Channel Futures

Open Source


Windows Azure Opens Up to SugarCRM

  • Written by The VAR Guy 1
  • November 17, 2009

SugarCRM is the latest open source application provider to jump into Microsoft’s Windows Azure cloud. SugarCRM’s move reinforce’s Microsoft’s commitment to make Azure a widely supported cloud — including both open and closed source application partners. Here are the implications for VARs and solutions providers.

As The VAR Guy previously reported, Microsoft is quietly working with SugarCRM, MySQL and other open source partners on a range of projects. This, despite the fact that Red Hat is warning customers and partners about potential Windows Azure lock-in. And as Matt Weinberger reported, Microsoft recently pulled back the curtains on a Windows Azure release schedule. Weinberger, The VAR Guy hears, is poking around and speaking with more Azure ISVs this week. Stay tuned for updates.

Partner Choices

For VARs and solutions providers, Azure represents a potential bridge from on-premise Windows servers to cloud-based Windows applications. That bridge will lead to both open source and closed source applications — a smart move by Microsoft. And the Azure cloud could generate recurring revenue for VARs and managed service providers.

Separately, Microsoft continues to promote the Business Productivity Online Suite (BPOS) — featuring hosted Exchange, hosted SharePoint and other apps — to VARs and end-customers. But here’s the twist: Microsoft ultimately controls the pricing and product margin of BPOS applications. And Microsoft has already made a big BPOS price cut far sooner than most partners had expected.

In stark contrast, VARs that move customer applications into the Windows Azure cloud potentially charge whatever they want for the ongoing online applications. Translation: The VAR Guy thinks focusing on Azure (rather than BPOS) could be a more profitable bet for solutions providers.

Still, it’s early in the Azure game and there are plenty of risks ahead. Two prime examples:

  • Numerous channel partners across the world host SugarCRM on their own. Now, those SugarCRM partners could face potential competition from the Azure cloud.
  • Microsoft itself will face plenty of competition from Amazon Web Services, Rackspace Cloud (where sales are growing fast) and even Microsoft hosting partners like Intermedia.

Microsoft’s competitive strategy is clear: Instead of playing favorites it’s welcoming open source partners like SugarCRM into the Azure party. Smart move. Very smart.

Follow The VAR Guy via RSS; Facebook; Identi.ca; Twitter; and via his Newsletter; Webcasts and Resource Center. Plus, check out more channel voices at www.vartweet.com.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Cloud Open Source

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3 comments

  1. Avatar SplendidCRM December 4, 2009 @ 3:24 am
    Reply

    SplendidCRM is also available for Azure. But as a native C# .NET application, you might be able to leverage SplendidCRM to get a free Azure account when you signup for Microsoft BizSpark.

  2. Avatar not given October 17, 2010 @ 11:59 am
    Reply

    Microsoft has sunk to a new low . . . using “trial traps” . . . yes one must contact customer support to cancel a trial. There’s plenty of opportunity to sign up for more services but they make it very hard to cancel. I called Microsoft support . . . all the options for Azure support were available EXCEPT the one to cancel . . . it says they are CLOSED! I’m just going to tell my credit card company to charge back all Microsoft fees and move on to open source . . . there’s plenty of free software out there that works suffciently well given the cost. Azure is lack luster to say the least and high priced given the limited services. BTW: I was a devoted Microsoft customer for 15 years . . . I’m also a MCSE . . . but I’m giving up on Microsoft because they really are indifferent, at best, to the impact they have on customers.

  3. Avatar The VAR Guy October 19, 2010 @ 7:28 pm
    Reply

    Not Given: The VAR Guy wonders… are there alternative cloud approaches that you will pursue?
    -TVG

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