Is Migrating from Microsoft's Azure Blockchain to ConsenSys' Quorum Blockchain Service Good News?

Just as the digital asset industry is constantly changing and evolving, so too have recent changes in the enterprise blockchain industry. More recently, enterprise blockchain solutions are moving from private, closed networks to public, open systems. There are more possibilities for this as the Ethereum network grows, which ensures better privacy, scalability, capacity, and more features for enterprise customers.

A new industry analyst report attests to this shift, noting that the global blockchain technology market size is expected to reach $72 billion by 2026, growing at a 51.8% sequential growth rate. The report's findings revealed that the public enterprise blockchain segment emerged as the leading model with the highest market share globally during 2020.

With more and more enterprise blockchain solutions moving to the public web, it should come as no surprise that Microsoft recently announced that its Azure Blockchain Service is migrating users to alternatives. It’s worth noting that Microsoft’s Azure Blockchain was originally created as a sandboxed service on Ethereum in 2015 in partnership with ConsenSys.

By 2021, a recent Microsoft blog post noted that Azure users must now "migrate ledger data from Azure Blockchain Service to alternative products." The article further recommends that users migrate to the Quorum Blockchain Service, or QBS.

For context, QBS is ConsenSys' hosted product on Azure that supports Quorum as a ledger technology. Quorum allows enterprise customers to build blockchain solutions on the public Ethereum mainnet as well as on private networks.

"ConsenSys is providing migration from Azure Blockchain Service to Quorum Blockchain Service available on Azure. This has been part of our strategic relationship to ensure Azure customers have Quorum's enterprise-grade managed blockchain service."

Emmanuel Marchal, head of global sales at blockchain software company ConsenSys

Marchal further noted that since ConsenSys took ownership of Quorum from JPMorgan Chase last year, the company has been focused on bringing new technologies to market. This includes providing custody services for Quorum. Based on the strong relationship between ConsenSys and Microsoft, Marchal explained that "it makes sense for Azure Blockchain Service users to transition to QBS as a recommended migration strategy."

Is this good news for Microsoft?

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Azure SQL adds immutable ledger

Coincidentally, Azure SQL, the managed cloud database offered as part of Microsoft Azure, is incorporating ledger functionality. The development was recently announced at Microsoft's Build 2021 developer event.

According to a Microsoft blog post published on May 25, "Azure SQL Database Ledger" will add tamper resistance to Azure SQL Database. The post further states that Azure SQL Database Ledger will provide "a simpler solution for centralized systems that need to enforce trust between parties."

It's worth noting that Azure SQL Database sounds very similar to the Encrypted Secure Data product Oracle announced in March. Juan Loaiza, Oracle's executive vice president of mission-critical database technologies, noted that Oracle has created a cryptographically secure data management product that leverages "block-chained tables" in the Oracle Database. The functionality is distinct from Oracle's blockchain platform, which is built on Hyperledger Fabric and is often used for supply chain management.

With this in mind, another possible enterprise blockchain trend could be the incorporation of immutable ledgers into enterprise-grade databases, as Oracle and Microsoft have already demonstrated.

Will more companies turn to public systems in the future?

Regarding Microsoft’s migration to a solution powered by Enterprise Ethereum, Brody said that they see a general trend where companies are shifting their focus to public blockchains and shutting down private blockchain-centric custody businesses.

While this may be the current trend, it's worth noting that some enterprise solutions still rely on private networks. IBM AI Apps and blockchain general manager Kareem Yusuf noted that enterprises are continuing to invest in blockchain networks, with many opting for permissioned blockchains to solve complex industry challenges:

“In the enterprise, collaboration and trusted data sharing are essential, and for many, permissioned networks provide the assurance they need. In the future, we expect we will see more intersections of public and private networks .”