Something I keep in mind is that the transition to the cloud is...

Something I keep in mind is that the transition to the cloud is still in its early days. I know this may sound incorrect given we are probably quite computer literate and fast moving. However from an enterprise level there are lots of organisations still going through transitions and upgrades or holding out for their current solutions to no longer be supported before deciding to transition etc.

So the immediate challenge for Microsoft is to ensure they keep their customers in their eco system and don't see churn over to Google related products or other providers. Again this may seem incomprehensible if you're an ardent Microsoft word, excel, outlook user for years but there are competitors out there that are cheaper trying to capture some market share from all the variety of segments Microsoft operate in. Plus customers are sticky so if they move away from Microsoft during an upgrade cycle they may find it very hard to get them back.

I've experienced this at a very small scale at the individual level. Where they've allowed a trial office account to continue to work for a while now, now I find myself being advertised to for multiple licenses plus significant cloud back up for 5 users (family). You've probably seen similar deals out there. So if that's happening at the individual level I'm sure it's a huge fight out there at the commercial and enterprise level to fight for customers.

Now if that's their focus, it is conceivable to me that they aren't prepared to 'own' the 'backup' space just yet. Why not let companies like Dropsuite continue to innovate and add value to their base level back up service. Study what works, what doesn't, collaborate with the high achievers in segments they excel in etc. Maybe down the line acquire the better ones, or yes directly compete by increasing the standard of their base offering.

Given ALSO has chosen to collaborate with us, I don't believe this is happening in the short term. So the risks identified above are real, but I don't believe they're immediate. Microsoft also need to keep their resellers happy and if we are providing a way to help them with the sale and increase their ARPU, Microsoft would be silly to try and cut us off at the pass.

Microsoft is adopting a similar strategy in the AI space, they partner with lots of organisations that are creating AI related products, and no doubt will eventually pick some winners in certain segments to partner more exclusively with, acquire, or directly compete with their offering.

So the point about IP is relevant here and tbh I'm not sure what / if we have anything particularly interesting on that front, a bit more research needed. Their email analysis does sound like it's useful and so Dropsuite certainly has identified and already done work on differentiating their back up solution, this obviously needs to continue.

However given fast growth, market confirmation etc, I'm happy to invest. Not enough track record or information available to assess whether this will win long term, but short term I can only see positive outcomes, and an increase in SP. I'll keep a watch on the rest.