Microsoft teams with Elon Musk’s SpaceX to push cloud battle with Amazon into orbit

This photo provided by NASA, a United Launch Alliance Atlas V rocket launches at Space Launch Complex 41 at the Cape Canaveral Air Force Station, Thursday, July 30, 2020, in Cape Canaveral, Fla. (Joel Kowsky/NASA via AP)

By Andy Pasztor and Aaron Tilley

Microsoft Corp. is teaming with Elon Musk’s SpaceX and others as the software giant opens a new front in its cloud-computing battle with Inc., targeting space customers.

Microsoft would help connect and deploy new services using swarms of low-orbit spacecraft being proposed by SpaceX, and more traditional fleets of satellites circling the earth at higher altitudes. Microsoft’s initiative targeting commercial and government space businesses, formally launched Tuesday, comes about three months after Amazon Web Services, the e-retailer’s cloud unit, disclosed its space-focused effort.

Ticker Security Last Change Change %
MSFT MICROSOFT CORP. 312.14 -5.40 -1.70%
AMZN AMAZON.COM INC. 125.98 -5.29 -4.03%

Some analysts have projected that overall revenue from space-related cloud services could total about $15 billion by the end of the decade, at least several times higher than current levels.

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