Data alliance of tech giants sets the tone for new cloud culture

It may sound contradicting that enterprises across the world are moving their sensitive business data to cloud, at the same time making a hue and cry about the security of information stored/shared on the public domain. Recent developments point to more fundamental changes in the way businesses manage and process data.

Microsoft (MSFT), Adobe (ADBE) and Sap Monday agreed to a historic partnership that could be of great significance to the information technology sector. At the Ignite conference organized by Microsoft in Florida, the software giants joined hands for what they described as an ‘initiative to help customers do more with their own data.

That is good news to large organizations having their data scattered on multiple cloud platforms. Under the pact, a common data model will be created within Azure, Microsoft’s cloud division, and made compatible with Dynamics 365, C/4HANA and Experience Cloud, the popular business applications of Microsoft, Sap and Adobe respectively. It is learned the initiative has already found supporters in large corporates like Unilever (UL) and Walmart (WMT).

The software giants joined hands for what they described as an ‘initiative to help customers do more with their own data’

The basic idea is to unlock information stored in the three application suites, making it convenient for clients to manage and analyze data. Customers of all the three platforms can benefit from the Azure-based data model, which offers unique AI tools like translation and speech/face recognition. In addition, the combined format will eliminate certain security issues and enable frictionless data interaction between different divisions.

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The modalities of the program are still being formulated. Seeking to expand the purview of the collaboration, Microsoft has urged all like-minded enterprises to be a part of it, but it is not clear whether it includes arch-rivals Amazon (AMZN) and Salesforce (CRM).

Meanwhile, experts believe the unification process will be a challenging task that could also stir up regulatory issues. Moreover, there is no effective system in place yet for gathering and processing huge volumes of data from multiple platforms.

Keeping pace with its peers in the tech industry, Microsoft surged to an all-time high last week, registering a 33% growth over the past 12 months. Paring the initial losses suffered Monday, the stock bounced back as trading progressed.

Adobe has been in correction mode after reaching a peak in mid-September, staying in the red throughout last week. The stock recovered modestly Monday.

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