Google Cloud suffers a setback as Replit ties up with Microsoft

Tuesday marked a monumental day for Replit. The innovative tech company unveiled its budding strategic alliance with Microsoft. This collaboration promises not only to be fruitful for both companies, but also brings exciting developments for their patrons.

Happy news for Microsoft users - Replit will be added to the Azure Marketplace, Microsoft's cloud app store made for businesses! This means that these enterprise users can now directly buy Replit subscriptions from the Azure Marketplace. Think of it as a fresh supermarket aisle dedicated to our friend, Replit!

Furthermore, Replit is marrying its technology with a host of Microsoft's cloud services - including containers, virtual machines, and even Microsoft's edition of the loved database, Postgres titled Neon Serverless Postgres. All this means that Replit's integration could bring some tidy profits for Azure, as apps built using Replit go live.

Between Microsoft’s chart-topping vibe coder, GitHub Copilot, and Replit, you'd assume there's a competition. But surprisingly, they manage to harmoniously coexist. They are tailored for different users and serve slightly various purposes.

Both Replit and Copilot are loved in the programming world. They have their sweet spots - Copilot competes with Anysphere’s Cursor as a smart, browser-based coding pal, while Replit caters to both beginners and experts in coding. Replit is an excellent tool for translating plain language into web apps, handling everything from databases to authentication. And for those more familiar with coding, they can happily tinker away, customising features in diverse programming languages.

The strategic collaboration is elevating this tool into a powerful prototyping/designing equivalent that can stand toe-to-toe with big names like Figma. Interestingly, they're also courting non-technical business managers. One example could be a sales manager whipping up a custom-made tool to monitor relationships between contract renewals and customer support tickets.

Exciting times are ahead in the realm of vibe-coding, where Replit truly shines. Replit's CEO Amjad Masad triumphantly revealed the company's exponential leap from $10 million to $100 million in annual returning revenue in just half a year.

Replit's evolution is showcased in its breakthrough with an impressive $97.4 million fundraising round, led by prominent venture capitalist firms and individuals. Replit's impressive roster of patrons includes Andreessen Horowitz, Khosla, Coatue, SV Angel, Y Combinator, Bloomberg Beta, Naval Ravikant, and ARK Ventures, bringing its valuation to a staggering $1.1 billion. With over half of this fund still tucked away safely, and boasting a platform populated by more than half a million business users, exciting prospects lie ahead.

In this fast-paced world, Replit locks horns with a number of upwardly-mobile start-ups, which includes European sweetheart Lovable, and Bolt, which saw similar growth.

But not everyone might be thrilled with this partnership. Previously, apps built via Replit typically found their home on Google Cloud. That said, this corporate love story between Replit and Microsoft isn't an exclusive arrangement, as reconfirmed to TechCrunch by Replit. This means Google Cloud will still remain a platform for Replit, even as it expands to support Microsoft-based businesses, and opens the doors for other noteworthy vibe-coders to potentially form similar alliances with Microsoft.

by rayyan