Sales executives at Microsoft Exchange Server hosting giant Intermedia say Microsoft's release of its Azure Services Platform will likely open new doors for solution providers, particularly those that are managed service providers or are dabbling in software development as ISVs.

It is those types of solution providers that will most benefit from the momentum behind moving some applications and infrastructure into the cloud, according to Intermedia. And with a big name like Microsoft behind such an initiative, customers may be more likely to make the move.

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"One of the biggest barriers for channel partners has been their question of whether it's OK to move data to the cloud or not," says Danny Essner, director of marketing at Intermedia. "Microsoft's launch of Azure provides one more proof point that will help channel partners" make that sale, he says.

Indeed, Intermedia pointed out the benefits of Microsoft's market entry into the hosted Microsoft Exchange business in spring 2008, even when Microsoft's move made it competitive with Intermedia.

Intermedia is a top provider of hosted Microsoft Exchange and other SAAS (software as a service) hosted applications, specializing in end-user businesses of 20 to 200 seats. Intermedia also counts more than 3,000 of its own channel partners, from very large Fortune 500 companies to small "guys in a garage" solution providers.

Essner says Microsoft's Azure is not competitive with Intermedia's SAAS offerings.

"We think it is very complementary to us," he says. Essner points out that cloud computing is quite distinct from SAAS. Cloud computing represents the platform for applications, while SAAS consists of the applications themselves.

Intermedia allows its channel partners to private-label its hosted application services, and ownership of the end customer is something that solution providers have said is important to their future in SAAS sales.