December 28, 2018

Microsoft to acquire Mellanox Technologies to boost their cloud prowess

The tech giant seeks to fortify its data center prowess in a bid to better compete against the likes of Google and Amazon.

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Tech giant Microsoft are all set to acquire data center provider Mellanox Technologies to boost the former’s cloud capabilities. With this acquisition, Microsoft seek to fortify its data center prowess in a bid to better compete against the likes of Google and Amazon.

According to Microsoft, the race to capture the cloud market globally has intensified. They say that rising awareness among consumers and the willingness to experiment with different cloud services and platforms is responsible for the boost received by the cloud market.

As the cloud market grows, Microsoft say that the dependency on data centers also increases. With this growing trend, Microsoft claim that players like them need to up their data center capabilities to accommodate cloud native enterprises.

By acquiring Mellanox, Microsoft claim that they will be able to boost its hybrid, public and private cloud prowess. They believe that by catapulting these categories, Microsoft will be able to entice a wider range of customers.

Mellanox say that they have experienced a strong demand for data center services which has given them a momentum in certain select markets. With Microsoft coming into the picture, Mellanox believe that they will be able to leverage the tech giant’s large network and expand globally.

Since the deal is in its nascent stage, the financial details about the acquisition are not disclosed by either of the parties. It will be interesting to see how Microsoft pushes itself in the cloud race with this acquisition, following Amazon’s expansion in South Africa.

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