Microsoft is announcing plans to move away from relying on IBM for its cloud services, with the new strategy being driven by IBM’s new acquisition of cloud computing company Neuralink.
Microsoft will focus on building its own solutions for the cloud, said Brad Smith, Microsoft’s vice president for enterprise solutions.
IBM will continue to build and support cloud solutions, he said.
“IBM’s cloud strategy has not changed since its acquisition of Neuralink in December 2015,” Smith said in a statement.
“The new strategic alignment of IBM with Microsoft will help us leverage our capabilities in new and unique ways to accelerate the growth of our cloud business, drive revenue growth, and drive innovation.”
IBM’s move to invest in Neuralink was announced in September 2015, when Microsoft acquired the company for $1.3 billion.
“Microsoft will focus its cloud business on building and supporting cloud solutions that deliver the best value for our customers,” Smith added.
IBM acquired Neuralink earlier this year, in a deal valued at $1 billion, for $750 million.
IBM previously announced it was looking to invest $100 million in AI-powered cloud storage platform Redis.
The acquisition also created a joint venture called AI Intelligence, which will develop AI-based cloud-based services.
IBM and Microsoft will work together on cloud computing for the next two years.
The two companies plan to create a single platform for AI-driven cloud services.
“We are excited to join forces with Microsoft on this strategic partnership,” Smith told investors on a conference call.
“It’s a big deal for us to work together.”