The Microsoft Azure Naming Case Study

Situation

• In the early days of cloud computing, Microsoft approached Lexicon Branding to develop a name for their cloud service
• Microsoft's initial expectation was to create a descriptive name that included or ended with "cloud" (e.g., "Cloud Pro")
• The cloud services market was becoming crowded with similar descriptive naming conventions
• Microsoft needed to establish a distinctive position in this emerging competitive landscape

Actions

Lexicon's Strategic Approach

• Challenged Microsoft's assumption that a descriptive name was necessary
• Warned that using "cloud" would place them "in an ocean of other cloud this, cloud that"
• Presented both descriptive options (as requested) and bolder alternatives
• Proposed "Azure" - a word meaning blue that had an indirect connection to sky/clouds
• Highlighted the linguistic qualities of Azure:
  • Contains the "noisy" letter Z that creates a strong signal
  • Starts with A (beginning of alphabet)
  • Ends with a smooth flow
  • Creates a balanced word with distinctive sound patterns

Overcoming Resistance

• The initial reaction was negative - one client called it "a dumb idea"
• Lexicon persisted in advocating for the name by:
  • Explaining the linguistic advantages of the word
  • Framing the choice as "starting a story" rather than "making a statement"
  • Demonstrating how a distinctive name would create asymmetric advantage in the marketplace

Results

• Microsoft ultimately adopted "Azure" as their cloud platform name
• The brand has grown to become a major business worth approximately $100 billion
• Azure established a distinctive identity in the cloud services market
• The name has proven durable and adaptable as the service has evolved

Key Lessons

• Descriptive names limit growth: Names that merely describe what you do place you in a sea of similar competitors without distinction.

• Boldness creates advantage: As David Plasik noted, "There is no power in comfort" - uncomfortable, polarizing names often have more market impact.

• Names should start stories: A great name doesn't just make a statement about what you are; it opens a narrative about what you could become.

• Linguistic qualities matter: The sound patterns and letter choices in a name create subconscious impressions (the "Z" in Azure creates noise and distinctiveness).

• Indirect connections can be powerful: Azure's subtle connection to blue skies/clouds was more effective than literal cloud terminology.

• Persistence pays off: Sometimes the best names face initial resistance and require continued advocacy.

• Think experience, not description: Focus on how you want customers to experience your brand rather than describing your product's function.