Microsoft sees user numbers of its data platform Fabric increasing.
Microsoft sees rapid adoption of its data platform Fabric, which is now used by 21,000 companies worldwide. This means that Microsoft partners like Snowflake and Databricks could also become competitors.
Broad Offering Gains Ground
According to Arun Ulag, head of Microsoft’s data products, Fabric’s broad offering is a key asset. “There is literally no other product that is so complete,” he says. Fabric bundles Power BI and data processing tools under one flag, allowing organizations to centralize data insights.
Snowflake and Databricks remain partners with Microsoft for now through integration with Azure, but they are also increasingly becoming competitors. Databricks, which derives much of its revenue from Azure customers, declined to comment. Snowflake emphasizes that their products are complementary, but also says that Google currently poses the biggest threat.
Competition or Collaboration?
Microsoft mentioned Databricks as a direct competitor in its annual report for the first time last year. Ulag also names MongoDB as a challenger. “We compete, but we also work together. That gives customers more choice.”
Snowflake CEO Mike Scarpelli acknowledged earlier this year that Fabric could become a serious threat in the long term, “if Microsoft gets it right.” He also says that his products are unique, because “if the hyperscalers could do what we do, we wouldn’t exist now”.