Microsoft Acquires High-Performance Computing Firm, Cycle Computing

Microsoft has disclosed that it is acquiring Cycle Computing, a firm which specializes in assisting business organizations carry out heavy-duty computing tasks. Some of these tasks include risk analysis in the financial sector and data crunching in the development of new drugs. The Redmond, Washington-based software maker did not reveal the deal terms.

According to the chief executive officer of Cycle Computing, Jason Stowe, clients of the startup have used its technology to build better solar panels and hard drives, manage financial risks, design faster rockets and fight diseases including cancer. Information available on the startup’s website shows that some of the clients include Aerospace Corp, Pacific Life and Novartis. Other organizations include NASA, Western Digital, Pfizer, Lockheed Martin and JPMorgan Chase. The flagship product of the startup is CycleCloud.

Complex computing tasks

More specifically the technology that Cycle Computing has developed assists business organizations to plan and manage complex computing tasks more efficiently and consequently enjoy savings with regards to the costs of cloud computing. Cycle Computing’s clients can employ the startup’s technology to share out computing tasks to multiple cloud computing firms and services such as Google Cloud, Amazon Web Services and Microsoft Azure.

A spokesperson for Microsoft said support for rival cloud computing services would continue to be offered for clients of Cycle Computing even after the acquisition.

“We will continue to support Cycle Computing clients using AWS and/or Google Cloud. While future Microsoft versions released will be Azure focused, we’re committed to providing customers a seamless migration experience,” a spokesperson for Microsoft said in an email.

Highly sought-after acquisition targets

According to Jason Zander, a vice president at Microsoft Azure, the employees of Cycle Computing would be absorbed by the largest software maker in the world. In what is strikingly different from other technology startups, Cycle Computing never sought funding from venture capitalists as it was mainly self-funded. According to the founders of the startup, they started the business with a credit card that had a limit of $8,000.

The acquisition of Cycle Computing by Microsoft comes approximately three years since the software giant purchased GreenButton, another high-performance computing firm. Such high-performance computing companies have become hot targets for cloud computing platforms as Amazon Web Services

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