By Erik Verduzco and Robert GalbraithMicrosoft is spending more than $40 million to acquire Web development startup Cloudstack, a cloud computing company that’s built on an open source technology.
The company is an early example of how the cloud computing revolution could have an impact on Microsoft’s cloud computing plans, which are already changing to include new products and services.
Microsoft’s Azure cloud computing division, which offers a variety of Microsoft products, announced in August that it would start working with Cloudstack on its cloud-powered applications.
The new partnership brings together Microsoft’s largest cloud computing provider and its biggest developer platform.
Microsoft acquired Webstack in 2016, when it bought an open-source, cloud-based application development platform called Xamarin.
That purchase was the first Microsoft acquired for its cloud software platform.
Xamarin is now part of Microsoft’s Visual Studio open-sourcing effort.
It also includes tools like Azure SDKs, the source code for its popular Visual Studio and Visual Studio Code development tools.
In an interview with VentureBeat, Microsoft CEO Satya Nadella said the company would work with CloudStack and other developers to bring new capabilities and services to the company’s cloud software.
“We’re excited to partner with Cloud Stack on the cloud and with the developers of Xamarines future capabilities,” Nadellasaid.
“We’re committed to bringing developers to Azure with new and better tools and capabilities.”
Cloudstack also builds on a platform called the Cloud Platform.
Microsoft has been working with a number of cloud services, including Amazon Web Services, to bring its services to Microsoft’s customers.
Microsoft is also working with cloud-hosting provider Rackspace to bring Azure to the cloud.
Microsoft said Cloudstack will focus on providing cloud-backed software, but Microsoft said it will not use the Cloudstack platform to build new software.
Cloudstack said it was working with other developers and could not provide an estimate of the number of new Cloudstack developers it would hire.
“The Cloudstack team is excited to join Microsoft and Rackspace on the Cloud Stack platform, and we’re excited for them to help Microsoft expand Azure to new users,” Cloudstack cofounder and CEO Matt Moore said in a statement.
Cloudstack said in its statement that it will be developing new products for Azure, and it will “work with Microsoft on the development of these new products in the cloud.”
Microsoft said in August it was buying Xamargot for $2.8 billion.
The acquisition came as Microsoft was building its new Azure cloud service, but the company is also moving to create a new cloud service for Office 365 customers.