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Salesforce says it will use Microsoft's Azure for its Marketing Cloud service, signaling a thaw in a complicated relationship

- Salesforce will deploy its Marketing Cloud service on Microsoft's Azure public cloud infrastructure.  — Salesforce already uses Amazon Web Services

CNBC Jordan Novet

Context & Ripple Effects

Salesforce has been building out its multi-cloud posture since 2016, when it committed to spend $400M on AWS over four years and moved its IoT service onto Amazon's infrastructure. Marketing Cloud itself was assembled through acquisition — including the $700M Krux purchase that closed its ad-tech gap with rival marketing clouds — so it arrives at Azure as a product Salesforce already runs across other providers.

First-order effects

  • Microsoft gains a marquee SaaS workload on Azure from a company long framed as a direct competitor in CRM and business applications, turning a rivalry into a supplier relationship for this service.
  • Salesforce's infrastructure mix now spans AWS and Azure simultaneously, reducing its dependence on any single hyperscaler for capacity and pricing leverage.

Second-order effects

  • AWS faces a precedent where a flagship customer publicly splits workloads across rivals, strengthening the case for the deeper integration and marketplace terms it later negotiated with Salesforce.
  • Azure's sales team gets a reference customer to pitch against AWS in enterprise accounts where Salesforce is already deployed, sharpening hyperscaler competition for SaaS tenants.

Third-order effects

  • If major SaaS vendors routinely run products on competitors' clouds, infrastructure becomes a commodity layer beneath application rivalries — co-opetition rather than platform exclusivity becomes the default enterprise structure.

The trend: Enterprise SaaS is decoupling from single-cloud dependence, with hyperscalers competing to host even their own rivals' applications.

Discussion

  • @jordannovet Jordan Novet on x
    seeing these two logos with a pipe or plus sign always always makes me twitch, but this is 2019 https://www.cnbc.com/... https://twitter.com/...
  • @alex @alex on x
    another win for Azure; this + JEDI not enough to challenge AWS for incumbency but certainly enough to show that AMZN won't run away with the market https://www.cnbc.com/...