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They are doing some things. They sponsor some startup events, and try to get people to use Windows Azure (which is actually quite nice) to compete with AWS (also Seattle). However, I think the reputation of Microsoft as the "Big Evil" is pretty hard for them to overcome. I think people tend to roll their eyes at them when they try to get into the startup space.

That being said, the other giant here, Amazon, seems to be doing just fine with their reputation.

Employees from both companies are common in the startup land here, having jumped ship to go on their own.

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