It is a win/win for Ubuntu and Microsoft.
Azure will be more appealing since you now can run a mix of both Windows and Linux.
People who pick a cloud provider ain't likely to switch from Linux to Windows just for that cloud provider, they would rather pick another cloud provider. So having Linux support can get Azure more customers.
About Microsoft Azure, they have two data centers in Europe, two in America and two in Asia. Your data is triple backed up and distributed across data centers.
It provides platform as a service (PaaS), so it is great for .NET developers who just want to develop without caring about maintaining/administrating the servers and such.
For Canonical this is a win, because they signed a deal with one of the worlds biggest software companies.
It lends them credibility and positions them as a major player in the enterprise Linux world. Before it was pretty much Red Hat (which are great btw!) you went to if you wanted enterprise Linux.
It also ties Microsoft closer to Linux so they will hopefully be less willing to cause any trouble as a strained relationship could be bad for them.
Some are skeptic to Microsoft (and rightfully so considering their past, and also some current actions). Microsoft is not the same company it was during the 90s, some things have changed, some have not.
There are still some asshole factions within Microsoft (such as the old Microsoft veterans and Office developers, and Steve Ballmer is an idiot), but now there are some cool factions too, such as the web-related factions.
If you goto Microsoft conferences and events, you see pretty much all the speakers have GitHub stickers on their laptops, some even Ubuntu stickers and using Google Chrome. You can hear them talking about open source, and even mentioning Linux.
Microsoft now even releases some open source software, the Azure tools for Linux are released under the Apache License.


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