LinkedIn scraps plans of relocating to Microsoft Azure

December 14, 2023 07:25 AM PST | By Invezz
 LinkedIn scraps plans of relocating to Microsoft Azure
Image source: Invezz

LinkedIn has reportedly scrapped plans of moving its data centre technology to Azure. Shares of Microsoft Corp (NASDAQ:MSFT) are down 1.0% at writing.

Project “Blueshift” was announced in 2019

The social media platform for businesses has opted to stick with physical facilities, as per people familiar with the matter.

LinkedIn is currently in the midst of setting up another data centre in pursuit of meetings its computing needs, they added.  

The employment-focused social network had originally proposed to relocate its data centres to Azure – a project code-named “Blueshift” in 2019. A LinkedIn representative wrote in an email today:

We are using Azure to complement our infrastructure needs and further investing in our data centres. Azure has been crucial [for] productivity for our teams and deliver value to our members.

Watch here: https://www.youtube.com/embed/gjmgSvZXMFk?feature=oembed

LinkedIn news is a setback for Microsoft

The news arrives more than a month after Microsoft reported a 29% annualised growth in its cloud services (including Azure) revenue.

The said cloud infrastructure is the same that OpenAI uses to run its large-language models or LLMs that power AI solutions like ChatGPT.

Microsoft Corp had spent $27 billion to acquire LinkedIn in 2016. In November, the number of users on the professional social platform surpassed 1.0 billion (globally) for the first time.

Today’s development is a setback for the tech behemoth that’s been committed to posing a bigger and better competition to Amazon Web Services in the cloud infrastructure market. $MSFT is currently up more than 50% for the year.

The post LinkedIn scraps plans of relocating to Microsoft Azure appeared first on Invezz


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