Microsoft, Adobe to merge into one software giant
Microsoft, Apple and Adobe will merge into a new software giant, Microsoft said on Tuesday, in a move that could pave the way for a greater integration of their technologies.
The new company, called Microsoft Azure, will focus on Microsoft Office, Adobe’s Photoshop, Microsoft’s Dynamics CRM, the online publishing company Scribd and other services that are used by more than 200 million users.
The combined company will be known as Microsoft Azure.
“As we continue to make progress toward bringing cloud-based computing and the cloud to every corner of the world, we’re excited to be bringing our incredible customers with us,” said Brad Smith, CEO of Microsoft.
“Together, we will build an amazing platform for delivering the best possible user experience to millions of customers around the world.”
Smith did not specify the size of the merger, but said it will take up to five years to complete.
Microsoft has been a partner of Adobe since 2007, and the company has been building a cloud-focused software and services ecosystem that includes Office 365, Photoshop, Dynamics CRMs and other tools.
Microsoft’s Office division has been in a decline since 2013, and has been hurt by Microsoft’s focus on Office 365 as a productivity suite rather than a standalone product.
It has also struggled to attract new talent and retain some of its core employees, which are increasingly moving to cloud services.