A note to customers suggests Microsoft is concerned about cloud capacity during the coronavirus crisis - and that it could 'adjust' offers for free services accordingly

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A note to customers suggests Microsoft is concerned about cloud capacity during the coronavirus crisis - and that it could 'adjust' offers for free services accordingly
satya nadella
  • Microsoft in a note to customers said it could be faced with capacity constraints as demand for its cloud services continue to grow - especially as more people work from home amid the coronavirus crisis.
  • In response, it would prioritize "first responders, health and emergency management services, critical government infrastructure organizational use" and remote workers using its Teams chat app.
  • The note also said Microsoft could adjust free offers to ensure services for existing customers. Microsoft has offered free trials of its Teams chat app and other products.
  • An analyst recently told Business Insider the coronavirus crisis is likely to lead to a boost of customers for Microsoft, but the company is going to have to invest now to make sure it has the capacity to handle them.
  • Click here to read more BI Prime stories.

A note to customers posted Saturday to Microsoft's blog suggests the company is concerned about potential capacity constraints, including for its Azure cloud business, as usage increases during the coronavirus crisis.

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Microsoft has already experienced an outage for its Microsoft Teams chat app last week as more people started working from home and using the service. An analyst recently told Business Insider the coronavirus crisis is likely to lead to a boost of customers for Microsoft, but the company is going to have to invest now to make sure it has the capacity to handle them.

In its note to customers, Microsoft said it could be faced with capacity constraints as demand for cloud services continue to grow, adding that its products and services - including Microsoft Teams and Dynamics 365 - are being used by large-scale corporations, schools, and governments.

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If there are any capacity constraints, Microsoft said it would prioritize "first responders, health and emergency management services, critical government infrastructure organizational use, and ensuring remote workers stay up and running with the core functionality of Teams."

Microsoft early this month informed customers and partners it will offer free six-month trials of the premium version of its Teams chat app amid the coronavirus crisis.

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Saturday's note seemed to suggest Microsoft could change those offers if it threatens capacity for paying customers. "We will also consider adjusting free offers, as necessary, to ensure support of existing customers," the note said.

Microsoft has yet to respond to a request for more information.

A boost of new customers

Futurum Research analyst Daniel Newman recently told Business Insider he expects companies will invest heavily into making so-called "digital transformations" in the fallout of the crisis.

Microsoft not only offers tools for people to work from home immediately, Newman said, but products and services companies will need to go digital in the long run, such as cloud computing resources, help with software development, and artificial intelligence.

But, Newman said, Microsoft Teams already had issues with an outage in Europe and needs to invest now to make sure it has the capacity for all those customers.

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