By David A. FahrentholdPublished Aug 12, 2018 12:11:59Microsoft is buying server and app software giant Web Server, web services provider Node, and its developer tools for $1.25 billion, according to people familiar with the deal.
The deal is part of Microsoft’s efforts to compete with Amazon and Google for customers and a broader push to compete more with big players like Google, Apple and Facebook, said the people, who spoke on condition of anonymity because the transaction is private.
The companies will be led by CEO Satya Nadella, who was Microsoft’s chief technology officer when the company was founded in 1992 and has since been the chief executive.
Nadella will continue to lead Microsoft’s cloud business and the Windows and Azure business, the people said.
The announcement comes as the cloud market continues to struggle.
The cloud computing market has declined by more than 25% in the past year, according.
The Microsoft acquisition is also the largest in the company’s history, surpassing the $3.9 billion purchase of software developer Epic last year, said one of the people.
Microsoft is the largest cloud computing company in the world, according, and it is expected to double revenue by 2021, according To The Verge, which is tracking Microsoft’s data.