Microsoft is Challenging Databricks, Snowflake & Co. with Fabric

Microsoft Corp. is rapidly expanding its presence in the data analytics market with Fabric, its unified data platform, now adopted by over 21,000 organisations globally just 18 months after its launch, Bloomberg reported.

Fabric was first announced in May 2023 as a comprehensive data platform that integrates multiple tools—including data engineering, data warehousing, real-time analytics, and business intelligence—into a single offering.

It brings together services like Power BI, Azure Synapse, and Data Factory, enabling users to ingest, process, analyze, and visualize data on a unified foundation built for scalability and collaboration.

"Microsoft Fabric is our AI-powered platform designed to bring all your teams and data together to accomplish any data project. With Fabric, our goal is to converge all the data services you need into a unified, open, and extensible platform, so you no longer have to manually stitch together disconnected services," Microsoft said in a blog post.

Launched under the broader push to simplify data infrastructure, Fabric aims to offer a seamless alternative to specialised platforms from rivals like Snowflake Inc. and Databricks Inc.

At Build 2025, Microsoft announced major updates to its Fabric platform, including enhanced data mirroring for real-time synchronisation, improved data governance through deeper integration with Microsoft Purview, and expanded AI capabilities for advanced analytics.

These enhancements aim to streamline data management, boost compliance, and enable smarter insights across enterprise data environments.

While Snowflake and Databricks have pioneered advanced data processing tools, they now face growing competition from cloud giants like Microsoft, which integrate data analytics more deeply into their cloud ecosystems.

Interestingly, both companies maintain partnerships with Microsoft via Azure, but the lines between collaboration and competition are increasingly blurred.

Microsoft officially listed Databricks as a competitor in its 2024 annual financial report, underscoring the rising stakes.