Microsoft (NASDAQ:MSFT) Azure partners with SpaceX to offer cloud computing in space

The space race for cloud dominance is heating up.

| More on:
asx share price represented by high tech computing space satellite pictured floating above earth in space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Microsoft Corporation (NASDAQ: MSFT) announced today that it would partner with Elon Musk's SpaceX and others to bring cloud computing to the "final frontier." The initiative, dubbed Azure Space, will use the services of a combined fleet of low-orbit spacecraft and traditional satellites to better connect the evolving space industry with the cloud. 

The service will target both commercial and government space agencies, providing a system of integrated, secure links connecting a variety of cloud, space, and ground capabilities. Microsoft will also provide mobile cloud data centers that can be deployed anywhere across the planet, particularly in challenging environments with little or no infrastructure, which will connect to and communicate with the partner satellites. 

SpaceX, which has gained a name for itself with the use of reusable two-stage rocket and astronaut capsules, is working on a constellation of internet-beaming satellites called Starlink, with plans to bring internet service to virtually anywhere on Earth.

The news follows Microsoft's announcement last month of the launch of Azure Orbital, a service designed to enable satellite operators to communicate with and control their satellites, as well as "gathering, transporting, and processing of geospatial data." Orbital will also enable operators to directly downlink data to their virtual network in Azure.

Microsoft will compete directly with Amazon.com Inc (NASDAQ: AMZN) Web Services (AWS) Ground Station, which offers a similar suite of technology services, allowing users to communicate with, downlink, and process satellite data directly to the cloud. CEO Jeff Bezos also owns rocket company Blue Origin, which competes with SpaceX and is planning its own constellation of 3,236 satellites.  

Other collaborators on the Azure Space project include SES, one of the world's largest satellite operators, ground communication specialist KSAT, ground station provider ViaSat Inc (NASDAQ: VSAT), and aerospace and defense specialist Kratos Defense & Security Solutions Inc (NASDAQ: KTOS). Partners also include mission control software provider Kubos, ground communications provider Amergint, and US Electrodynamics, which provides satellite teleport services.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Danny Vena owns shares of Amazon and Microsoft. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Microsoft and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2021 $115 calls on Microsoft, long January 2021 $85 calls on Microsoft, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

Smiling man sits in front of a graph on computer while using his mobile phone.
International Stock News

3 reasons to buy Nvidia stock like there's no tomorrow

The GPU leader's share price has retreated from its all-time high, but this is an excellent time to buy.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
International Stock News

If you'd invested $1,000 in Nvidia 5 years ago, here's how much you'd have today

Nvidia has gone from a relatively under-the-radar chipmaker to the world's most valuable public company.

Read more »

Piggy bank on US flag with stock market data.
Share Market News

US stocks outperform ASX 200 for third consecutive year: Is it time to bail?

In the year to date, the S&P 500 Index is up 16.4% while the ASX 200 is up 5%.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway, Warren Buffett.
International Stock News

1 reason now is a great time to buy Berkshire Hathaway stock

Technically speaking, there's one reason to buy Berkshire Hathaway, but it is made up of billions of smaller reasons.

Read more »

ASX share investor sitting with a laptop on a desk, pondering something.
International Stock News

Better artificial intelligence stock: Palantir Technologies vs. Nvidia

Palantir and Nvidia have both crushed the market since ChatGPT launched, but which AI titan deserves your money today? The…

Read more »

Skate board with the Google logo.
International Stock News

Here's why Alphabet is the best-performing "Magnificent Seven" stock in 2025 (and why it has room to run in 2026)

In a matter of months, Alphabet went from a market underperformer to knocking on the door of the $4 trillion…

Read more »

A man smiles widely as he opens a large brown box and examines the contents.
International Stock News

My surprising top "Magnificent Seven" stock pick for 2026

Amazon is my pick to be the top-performing "Magnificent Seven" stock in 2026.

Read more »

Warren Buffett
International Stock News

Warren Buffett is sending a clear warning as 2026 approaches: 3 things investors should do

Buffett's actions speak volumes.

Read more »