Elon Musk is a great entrepreneur who has an uncanny eye for profitable partnerships, and in In this article, we will look at his latest partnership with Microsoft and how his company SpaceX stands to benefit massively from it.
If you desire to grow in business partnerships are the way forward. However, you need to choose the best partnerships for your business otherwise you will not get the growth you desire.
Before we dive into Elon Musk’s latest partnership, we will look at why musk and Microsoft are estranged bedfellows. One of the most popular billionaires is Bill gates who co-founded Microsoft thanks to his effort Microsoft became a household and enterprise name for many years gates were the face of Microsoft and the richest man alive just as musk is the face of tesla and the richest man alive. Gates is no longer involved in the day-to-day operation of Microsoft after he handed it over to steve Balmer in 2000.
When Balmer handed over to Satya Nadella in 2014 gates was further removed from the running of Microsoft however, for many people especially the old-timers the association between gates and Microsoft remains. The problem is musk is not a big fan of his fellow billionaire
gates and the feeling are mutual the pair have butted heads on several subjects even including the ones both of them are working together.
Musk prefers everybody buys his tesla cars, especially fellow billionaires however, while gates agree tesla has helped drive innovation and the adoption of electric vehicles he likes to purchase his zero-emission vehicles from other brands. Gates used parts of his enormous wealth to buy a Porsche and not a Tesla a purchasing decision that didn’t please musk in response musk said his conversations with gates have been underwhelming in the thick of the pandemic the older billionaire tried to caution musk’s choice of word about covid 19 reminded the younger CEO that his expertise was in electric cars and rockets.
They should not opine about the pandemic at that point however both billionaires were fighting the pandemic in their ways with gates pledging 100 million dollars and musk using some of tesla’s resources to produce ventilators and even working with the company gates was an investor is to create a device for making vaccines. But of course, musk was fighting hard to keep his factory open and production moving even threatening to move out of the state now long after that gate wrote a blog about whether he questioned whether it was practical to make battery-powered heavy-duty trucks without mentioning tesla
But it was the perfect opportunity for musk to point out who didn’t have any experience building electric vehicles musk had more opportunity to get back at the gate on his coronavirus comment during an interview with kara swisher when he called gates a knucklehead reminded him of tesla’s association with curves which gates were an investor in. Gates would make his appearance on swisher’s show later where he made it clear he would rather spend his immense wealth on vaccines here on earth instead of burning it on outer space projects like musk
Who is ready to spend his massive fortune on sending colonists to the red planet. There is, however, another main reason why musk did not care for gates the former CEO of Microsoft had shorted tesla’s shares in the past as he came close to admitting once. Musk has a strong feeling about tesla’s shortage despite he proclaiming tesla’s stock was overpriced in the past. However, the rift between musk and gates is not enough to stop musk from doing business with the software giant nor is the difference in the ages of the two companies.
SpaceX and Microsoft are teaming up around Starlink and cloud businesses the two businesses are among the fastest-growing making it smart for the two companies to see how they can aid one another. For SpaceX can’t satisfy the demand for its Starlink business the Starlink business uses satellites put in orbit to provide an internet connection to customers on the earth one of the advantages of satellite internet is that it can work anywhere the client is whether in the desert or the jungle as long as the satellite coverage extends to the location the client can remain connected.
SpaceX is sending up satellites rapidly to be able to cover the entire planet in a short while there are about 2,000 stalling satellites in orbit already but SpaceX will need tens of thousands of satellites to achieve this goal of covering the whole earth. SpaceX has an advantage as a rocket company so it will launch its satellites. However, SpaceX is launching satellites for its would-be competitors too but it is so far ahead of the pack as not to be worried. About five hundred dollars you can get a receiver dish after which you pay a flat rate of 99$ to access fast speed internet. SpaceX recently found a cheaper way of producing the receiver although it will not affect the price customers pay for the dish.
SpaceX has been absorbing the production cost before with more than 700,000 people trying to become a customer SpaceX’s factory which makes 5000 units per week will be kept busy for a long time. Microsoft too has been recording lots of success in its cloud business known as azure. Revenue from the segment grew a massive 48% year on year as it captured 22 percent of the global cloud market second only behind amazon web services. azure is used by developers i.t professionals and enterprise clients for networking, storage, mobile web application services, artificial intelligence, the internet of things, and many other computing needs.
So, at what point do SpaceX’s StarLink and Microsoft’s Azure cloud businesses converge first SpaceX welcomes enterprise or business customers to Starlink and these are the clients Microsoft is going after most with its cloud solutions, Microsoft wants to get every business onboard it’s cloud business wherever they are whether in the jungle of the Amazon or the north pole. For this to happen the clients need a strong internet connection where Starlink comes in. The Redmond giant has worked on mobile data centers or azure modular data centers which can work in isolated places. These mics can be moved about as required and each one is equipped with servers that can store data.
These mics can function as a cloud on their own as they have networking
capabilities so other computers can connect to them locally to back up their data there. However, these mics can back up their data to Microsoft’s online cloud with an internet connection Microsoft only needs to find a way to link these mics to its network wherever the mics are the best option would have been through the optical fiber. But that is not always practical the mics are shipping containers that are already in operation even in the most challenging spots they have their cooling systems to keep the servers from overheating.
They are used by the military on mining sites far away from town during disaster relief efforts. The idea is that you drop an MDC when and where you need one and take it away after you are done. MDC operators have the option to run the data center completely offline if their operation can be completed locally. This means all the computing and storage will take place locally. however, with Starlink’s fast satellite internet MDC operators can upload data from the MDC to the online cloud in real-time meaning all their data will be backed up in the cloud apart from the offline servers or if they prefer the MDC operators can choose to delay back to scheduled times.
With this deal signed between SpaceX and Microsoft, every MDC will have a Starlink receiver dish to provide an internet connection anywhere. The two companies have mutual customers given that lots of businesses use Microsoft azure already and will plan to use Starlink’s services well the two companies will be able to retain these other companies so it is a win-win for SpaceX and Microsoft.
But why exactly did Microsoft decide to go with SpaceX? here is a comment from the vice president of azure global at Microsoft tom Keane SpaceX is of course the name that people immediately think of when they think of innovation and the evolution that’s occurring to bring space technology into the 21st century. Microsoft, however, is not the only company hoping to leverage SpaceX’s Starlink internet service to push its cloud business. Microsoft’s competitor Google has also signed a deal with SpaceX that will even make the space company install some of its ground stations inside google’s data centers. Google’s customers will then be able to rapidly connect to their data in the cloud through Starlink’s fast internet and run the apps their businesses depend on.
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