Microsoft and SpaceX Team Up
The Future of Space-Related Cloud Services
Microsoft (MSFT) is joining forces with SpaceX to connect its Azure cloud computing network to SpaceX’s Starling satellite internet system. As they launch this new project, Microsoft and SpaceX are in competition with Jeff Bezos, the founder of Amazon (AMZN) and Blue Origin, which, when combined, offer similar satellite services.
It is estimated that revenue generated by space-related cloud services could reach $15 billion by the end of the decade. Demand for cloud services surged this year in particular as businesses shift to working from home due to the COVID-19 pandemic. Because of the enormous potential for growth, companies are vying for dominance in the industry.
SpaceX’s Progress So Far
SpaceX has launched more than 800 Starlink satellites already. This is not nearly enough to offer internet coverage around the world, but is enough to provide service in some regions. The company is testing its capabilities in the Northwestern United States and hopes to provide internet service in rural Washington State.
The partnership with Microsoft will help SpaceX grow its network. Eventually, the two companies hope to deliver connectivity to both the public and private sector in a wide array of locations.
Microsoft’s Other Partners
The collaboration with SpaceX is one of several space-related projects Microsoft has launched recently. For example, Microsoft also partnered with SES, a Luxembourg-based satellite operator, which will also link its satellites to Azure.
As the space-related cloud industry heats up, investors will be eager to see which companies come out on top.
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