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Updated Aug 29, 2024

Microsoft Azure vs. Amazon Web Services: Cloud Comparison

Microsoft and Amazon are two of the leading cloud-based infrastructure as a service providers. Which one is right for your business?

Mark Fairlie
Written By: Mark FairlieSenior Analyst & Expert on Business Ownership
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Gretchen Grunburg
Senior Editor & Expert on Business Strategy
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Amazon Web Services (AWS) and Microsoft Azure are two of the leading cloud-based infrastructure as a service (IaaS) providers. In the past decade, both companies have created a broad range of flexible, stable and profitable services. But which one is right for your business? 

We’ll explain everything you need to know about the primarily open-source AWS with its vast network of partners and growing specialist marketplace for Linux and Windows compared to the more closed-source Azure with its nascent Linux offerings.

AWS overview

As an IaaS provider, Amazon groups its AWS capabilities into the following categories:

  • Analytics: AWS’s analytics tools help companies process and analyze data from multiple sources to better understand business performance.
  • Application integration: Businesses can connect and coordinate various applications and services to manage and automate workflows, handle application programming interfaces (APIs) and build event-driven systems.
  • Artificial intelligence (AI): AWS’s AI and machine learning (ML) systems can streamline business processes by incorporating text analysis, image recognition and predictive modeling tools into your apps and workflows.
  • Blockchain: Programmers can set up and run distributed ledgers to manage blockchain environments and databases on decentralized apps. [Related article: How Will Blockchain Affect Digital Marketing?]
  • Business applications: Companies can access a suite of tools to improve productivity, streamline business operations and centralize communications. These apps can help you manage customer engagement better, optimize supply chain distribution, run omnichannel communications platforms and much more.
  • Cloud financial management: AWS’s financial management tools can help you monitor and control cloud expenditures, which can help with budgeting and improve forecasting.
  • Compute: Companies can plug into AWS’s vast compute capacity to run their software and applications remotely.
  • Containers: Containers are stand-alone software environments where you can load and run your own apps. AWS allows you to run multiple containers and manage apps that require access to multiple containers.
  • Database: Choose from various options to store, retrieve and manage your company data. Options include relational, NoSQL and in-memory databases.
  • Developer tools: Programmers can use AWS to manage the entire software development process, from version control to eventual deployment. The platform offers an environment where programmers can code, build, test and launch applications efficiently. [Related article: Best Freelancer Websites for Finding Developers]
  • End-user computing: Companies can ensure remote employees have the same desktop and app experiences as their in-office colleagues.
  • Front-end web and mobile: Create and deploy web and mobile applications using AWS services. The platform supports front-end development, backend integration and testing across multiple platforms.
  • Games: Game programmers can develop, test and run various gaming applications in the AWS environment. The platform can handle common backend functions and other essential operations.
  • Internet of Things (IoT): Companies can connect, manage and analyze data from their IoT devices, improve connectivity and achieve more consistent distributed computing.
  • Management and governance: Monitor and control cloud resources and applications to optimize your company’s cloud infrastructure while ensuring compliance.
  • Media services: Convert, process, encode and stream audio and video content to your audiences with AWS Media Services.
  • Migration and modernization: Moving to the cloud presents several challenges. AWS will assist with the process by optimizing your workloads for the cloud.
  • Networking and content delivery: Organizations can set up and manage their network architecture on AWS, including creating and monitoring private networks and content delivery systems.
  • Quantum technologies: AWS allows you to experiment with quantum algorithms and hardware to take advantage of this emerging technology.
  • Robotics: Companies can create and test robotic applications using AWS cloud resources. They can build software and simulate robotic systems before deploying them in the real world. 
  • Satellite: This service allows companies to control satellites and process satellite data without a physical ground station infrastructure.
  • Security, identity and compliance: Establish user authentication protocols, threat monitoring procedures and a data protection architecture to securely manage your data and applications.
  • Serverless: Programmers can use applications on AWS without directly managing their server infrastructure. Thus, they can spend more time coding and less on resource management.
  • Storage: AWS offers scalable cloud storage services for various data types, including backup and long-term archival storage. 
  • Supply chain: Firms can manage their supply chains with a selection of tools powered by advanced data analysis and machine learning.
Did You Know?Did you know
Amazon launched AWS in 2006. According to Amazon's Q1 2024 earnings report, AWS generated approximately $25 billion in revenue, contributing significantly to the company's total revenue of $143 billion. This represents a 17 percent increase compared to Q1 2023.

Microsoft Azure overview

Microsoft Azure provides the following IaaS service categories. You’ll notice many similarities to AWS, along with some key differences:

  • AI and ML: Access and add AI and ML tools and processes in your apps, including language processing and computer vision. You can also develop custom AI models.
  • Analytics: Azure’s data analytics products help companies gather, store, process and analyze data to gain insights and support decision-making. The service also includes several visualization tools.
  • Compute: Companies can use Azure’s massive compute power to automate their internal workflows and workloads. You can also run custom applications on virtual machines, container servers and serverless computers.
  • Containers: Use and manage multiple containers on Azure and run apps that must access several containers to operate.
  • Databases: Azure can store and manage various databases, including relational and NoSQL databases. It can also handle structured and unstructured data files.
  • Developer tools: Programmers can code, test, deploy and monitor application performance with Azure as part of their overall software development process.
  • DevOps: DevOps environments allow multiple developers to collaborate on software and applications. Functionality includes combining code from different team members and rolling out updates to users.
  • Hybrid and multicloud environments: Companies can manage their data and apps in on-premises, cloud and edge environments. Employees can work the same way everywhere, following the same rules, no matter what system they’re using.
  • Identity: On Azure, you can manage user identities and set individuals’ access levels to applications and resources. The platform also provides authentication and authorization tools.
  • Integration: Integration services allow you to connect different applications and apps with on-premises and cloud-based systems, facilitate data synchronization and integrate different processes and databases.
  • IoT: Companies can connect, monitor and analyze IoT devices better.
  • Management and governance: These tools allow you to monitor and control optimization, compliance and management across various cloud resources.
  • Media: On Azure, you can process and stream audio and video content and encode and protect your media assets.
  • Migration: Azure’s migration tools help companies move existing applications and data to the cloud. Azure assesses your current apps and databases, helps you move them to Azure and optimizes your data and apps to work well in the cloud.
  • Mixed reality: Companies can create, develop and manage 3D content (including augmented and virtual reality experiences) and spatial computing applications.
  • Mobile: Programmers can use Azure to develop, test and manage mobile applications, including connecting to backend environments and setting up push notifications.
  • Networking: Set up and manage your company’s network infrastructure on Azure. Solutions are available to create virtual networks, balance loads and improve connectivity.
  • Security: Azure’s security services protect company data, applications and IT infrastructures with encryption, threat detection and identity management tools.
  • Storage: Azure provides scalable cloud storage services for various data types, including object and archival storage.
  • Virtual desktop infrastructure: Companies can provide remote workers with desktop and application front ends so they work in the same environment as premises-based staff.
  • Web: Programmers can develop and host web applications on Azure, including managing APIs and online content delivery services.
Bottom LineBottom line
AWS and Azure can help your business boost productivity with cloud computing by making it easy to manage big data, increase security and flexibility and keep your business competitive.

AWS and Microsoft Azure compared

AWS and Microsoft Azure are highly regarded platforms with many similar features. However, they differ in several areas. Here’s how they compare head-to-head.

Feature for feature

Below is a selection of services offered by AWS and Microsoft Azure listed by category and service type, according to Google, which offers its own cloud service.

Service category

Service type

AWS offering

Azure offering

App modernization 

Continuous integration/continuous delivery

AWS CodeBuild, AWS CodeDeploy and AWS CodePipeline

Azure DevOps and GitHub Enterprise

Execution control

Amazon Simple Queue Service and Amazon Simple Notification Service

Azure Service Bus and Azure Storage Queues

Multicloud

Amazon EKS Anywhere, Amazon ECS Anywhere, AWS OpsWorks, AWS Systems Manager, AWS Controllers for Kubernetes, AWS Bottlerocket, AWS Outposts and AWS Direct Connect

Azure Service Bus, Azure Storage Queues, Azure Arc, Azure App Configuration, Azure Service Operator, Azure Container Instances, Azure Stack and Azure Express Route

Multicloud serverless

No current options

Service mesh

AWS App Mesh, Amazon VPC and Istio on Amazon EKS

Azure VPN Gateway and Istio in Azure Kubernetes Service

AI/ML

Cloud cost optimization

AWS Cost Optimization

AWS Cost Explorer and AWS Budgets

Conversational interface

Amazon Lex

Azure Conversational AI

Document understanding

Amazon Textract

Azure Form Recognizer

Image recognition

Amazon Rekognition Image

Azure Computer Vision

ML for structured data

Amazon SageMaker

AutoML in Azure ML Studio

ML platform

Amazon SageMaker, Amazon EC2 P3, Tensorflow on AWS and Amazon SageMaker Autopilot

Azure Data Science Virtual Machines, Azure Databricks, Azure AI Platform, Azure Cognitive Services, Azure Machine Learning and Azure Notebooks

Natural language processing

Amazon Comprehend

Azure Text Analytics

Personalization

Amazon Personalize

Azure Personalizer

Speech recognition

Amazon Transcribe

Azure Speech to Text and Azure Text to Speech

Speech synthesis

Amazon Polly

Azure Text to Speech

Translation

Amazon Translate

Azure Translator

Video intelligence

Amazon Rekognition Video

Azure Video Indexer

Backup and disaster recovery

Software as a service

 

AWS Resilience Hub

Azure Backup and Disaster Recovery

Compute

Core compute

Amazon Elastic Compute Cloud (EC2) P3, AWS UltraClusters, Amazon Elastic Compute Cloud (EC2), AWS Auto Scaling, Amazon EC2 Instance Connect, Amazon Elastic Block Store, AWS EC2 Instance Connect, AWS Systems Manager and Amazon EC2 Dedicated Host

Graphics Processing Unit Optimized VMs, Azure Virtual Machines, Azure Autoscale, Azure Virtual Machine Scale Sets, Azure Managed Disks and Azure Bastion

Dedicated VMs

Amazon EC2 Dedicated Host

Azure Dedicated Host

Infrastructure modernization

SAP on AWS

SAP on Azure

Platform as a service

AWS Lambda, AWS Fargate and AWS App Runner

Azure App Service

VMware connectivity

VMware Cloud on AWS

Azure VMware Solution

Containers

CaaS

Amazon Elastic Kubernetes Service and Amazon Elastic Container Service

Azure Kubernetes Service

Container registry

Amazon Elastic Container Registry and AWS CodeArtifact

Azure Container Registry and Azure Artifacts

Container security

No current options

Gaming

Amazon GameLift

Azure for Gaming

Data analytics

Business intelligence (BI)

Amazon QuickSight

Microsoft Power BI

Data discovery and metadata management

AWS Glue Data Catalog

Azure Purview and Azure Data Explorer

Data integration/extract, transform and load

Amazon AppFlow, Amazon Data Pipeline and AWS Glue

Azure Data Factory

Data processing

Amazon Elastic MapReduce, AWS Batch and AWS Glue

Azure Data Lake Analytics and HDInsight

Data warehouse

Amazon Athena and Amazon Redshift

Azure Synapse Analytics

Data wrangling

Amazon SageMaker Data Wrangler

Azure Data Factory

Messaging

Amazon Simple Notification Service and Amazon Simple Queueing Service

Azure Service Bus Messaging

Query service

Amazon Redshift Spectrum

Azure Synapse Analytics

Stream data ingest

Amazon Kinesis

Azure Event Hubs

Stream data processing

Amazon Kinesis Data Firehose, AWS Glue, Amazon Aurora zero-ETL integration with Amazon Redshift and AWS DMS

Azure Stream Analytics and Azure Data Factory

Workflow orchestration

Amazon Data Pipeline, AWS Glue and Managed Workflows for Apache Airflow

Azure Data Factory

Database

Document data storage

Amazon DocumentDB and Amazon DynamoDB

Azure Cosmos DB

In-memory data store

Amazon ElastiCache

Azure Cache

NoSQL: Indexed

Amazon DynamoDB

Azure Cosmos DB

NoSQL: Key-value

Amazon DynamoDB

Azure Cosmos DB

Relational database management system

Amazon Aurora and Amazon Relational Database Service

Azure Cosmos DB for PostgreSQL, Azure SQL Database, Azure Database for MySQL and Azure Database for PostgreSQL

Relational

Amazon RDS for Oracle

Azure Oracle Database Enterprise Edition

Developer tools

Client libraries

AWS SDKs

Azure SDKs

Cloud development  Integrated development environment (IDE) plugin

AWS Toolkit for IntelliJ and AWS Toolkit for Visual Studio Code

Azure Toolkit for IntelliJ and Azure Tools for Visual Studio Code

Cloud-based IDE 

AWS CloudShell

Azure Cloud Shell

Command-line interface (CLI)

AWS CLI

Azure CLI

Error handling

No current options

Job scheduling

Amazon CloudWatch

Logic Apps

 

No-code

Amazon Honeycode, AppSheet

Microsoft Power Platform

Parallel task execution

Amazon Simple Queue Service and Amazon Simple Notification Service

Azure Service Bus and Azure Storage Queues

PowerShell

AWS Tools for PowerShell

Azure Tools for PowerShell

Enterprise

Abuse prevention

AWS WAF CAPTCHA and AWS Fraud

Microsoft Dynamics Fraud

Marketplace

AWS Marketplace

Azure Marketplace

ML workflows

Tensorflow on AWS

Azure DataBricks

Solutions catalog

AWS Service Catalog

Azure Custom Images and Azure API Management

Government services

Regulated services

AWS GovCloud

Azure Government

Integration services

API management

Amazon API Gateway

Azure API Management

iPass

Integration platform

Amazon AppFlow

Azure Logic Apps

Management tools

API management

Amazon API Gateway

Azure API Management

Cost management

AWS Cost Explorer and AWS Budgets

Azure Cost Management

Deployment

AWS CloudFormation, AWS Serverless Application Model and AWS Cloud Development Kit

Azure Deployment Manager

Monetization

Amazon Publisher Services, Mobile Ads

Azure API Management

Media

AI

Amazon Rekognition Video

Azure Video Analyzer for Media

Encoding and streaming

AWS Media Convert and AWS MediaLive

Azure Media Services

Monetization

AWS MediaTailor

Azure Media Services and Azure Video Indexer

Migration

Container migration

AWS App2Container

Azure Migrate

Server migration

AWS Server Migration Service

Azure Migrate

SQL database migration

AWS Database Migration Service

Azure DMS

Storage migration

AWS Storage Gateway and AWS DataSync

Azure Data Factory and Azure Storage Mover

Networking

Content delivery network

Amazon CloudFront

Azure Front Door

Domains and domain names service (DNS)

Amazon Route 53

Azure DNS

Firewall

AWS Shield Advanced, AWS Network Firewall, AWS Security Groups and AWS network Access Control List

Azure Firewall

Load balancer

AWS Elastic Load Balancing

Azure Load Balancing

Network connectivity

AWS Direct Connect, AWS Virtual Private Network (VPN), Amazon Cloud WAN, AWS Transit Gateway and AWS PrivateLink

Azure ExpressRoute, Azure VPN, Azure Virtual WAN and Azure Private Link

Network monitoring

AWS Network Manager

Azure Network Watcher

Premium networking

AWS Global Accelerator, AWS data transfer

Internet egress via Microsoft’s premium global network (or over the public internet)

Service mesh

AWS App Mesh

Open Service Mesh

Services discovery

AWS Cloud Map

Hashicorp Consul Service on Azure

Virtual networks

Amazon VPC NAT instances and Amazon Virtual Private Cloud

Azure NAT Gateway and Azure Virtual Network

Operations

Audit logging

AWS CloudTrail

Azure Audit Logs

Logging

Amazon CloudWatch Logs

Azure Monitor Logs

Monitoring

Amazon CloudWatch

Azure Monitor

Performance tracing

AWS X-Ray

Azure Monitor Application Insights Distributed Tracing

Profiling

Amazon CodeGuru Profiler

Azure Monitor Application Insights Profiler

Security and identity

Certificate management

AWS Private Certificate Authority

No current options

Customer identity and access management 

Amazon Cognito

Azure Active Directory B2C

Cloud provider access management

No current options

Customer Lockbox for Microsoft Azure

Container security

Amazon ECR Image Scanning

Azure Defender for container registries

Data loss prevention

Amazon Macie

Azure Information Protection

Encryption

AWS Nitro Enclaves and AMD Secure Encrypted Virtualization-Secure Nested Paging (AMD SEV-SNP)

Azure Confidential Computing

Exfiltration prevention

AWS PrivateLink

Azure Private Link

Key management

AWS Key Management Service (KMS), AWS KMS (FIPS 140-2 Level 2), WS KMS with AWS External Key Store (XKS) and AWS CloudHSM with custom key store

Azure Key Vault, Azure Key Vault (FIPS 140-2 Level 2) and Azure Managed HSM

Identity and access management (IAM)

AWS IAM Identity Center, Amazon Identity and Access Management, AWS Systems Manager, AWS Managed Microsoft AD and AWS Verified Access 

Microsoft Entra ID (Azure AD), Azure Identity Management, Azure Application Proxy, Azure Bastion Host, Azure Active Directory Domain Services and Azure Active Directory External Identities

Resource access management

AWS Organizations policies

Azure Policy

Resource monitoring

AWS Config, AWS Resource Access Manager and AWS Organizations

Azure Resource Graph

Security information and event management

Amazon Security Lake

Microsoft Sentinel

Security orchestration, automation and response

No current options

Microsoft Sentinel

Secret management

AWS Secrets Manager and AWS Systems Manager Parameter Store

Azure Key Vault

Security and risk management

Amazon Guard Duty, AWS Security Hub, AWS Audit Manager and AWS Config

Microsoft Defender for Cloud

Zero trust

No current options

Serverless

Build

AWS Simple Storage Service (S3), Amazon Cognito, AWS Amplify Hosting, Amazon DynamoDB and AWS AppSync

Azure Blob Storage, Azure App Service authentication (Easy Auth), GitHub Pages, Static Web Apps and Azure Cosmos DB

 

Containers without infrastructure

AWS App Runner, AWS Fargate and AWS Lambda

Azure Container Apps and Azure Container Instances

Engage

Amazon Device Messaging (ADM), Amazon Simple Notification Service (SNS), AWS AppConfig, AWS Amplify and Amazon Pinpoint

Azure Notification Hubs and Azure App Configuration

Event handling

AWS EventBridge

Azure Event Grid

Function as a service

AWS Lambda and AWS Serverless Applications

Azure Functions Serverless Compute

Release and monitor

AWS Device Farm

Azure App Center

Workflow orchestration

AWS Step Functions

Azure Logic Apps

Storage

Block storage

Amazon Elastic Block Store

Azure Disk Storage

Egress security

No current options

Azure Firewall Explicit proxy (preview)

File storage

Amazon Elastic File System

Azure Files

Infrequently accessed object storage

Amazon S3 Glacier

Azure Archive Storage

Object storage

AWS S3

Azure Blob Storage

Costs

Both AWS and Azure offer a pay-as-you-go model billed by the second or the hour. They also offer discounts if you commit for one to three years. AWS service plan options are called Saving Plans (or Reserved Instances on some types of VMs), while the Azure plans are called Reserve VMs. Both companies offer up to 72 percent off their prices, depending on the length of your commitment.

You can also bid on spare compute capacity at a significant discount. Spot Instances (AWS) and Spot VMs (Azure) offer up to 90 percent off the price, but the downside is that the capacity can be taken from you if the provider needs it.

Both vendors offer price calculators on their websites. However, these tools may not be particularly helpful because some cost factors have as much to do with user behavior (like shutting down virtual machines when not in use) as the actual workloads you want to run. 

TipBottom line
When analyzing cloud computing costs, consider data management elements like transfer fees, data retrievals and resource management habits.

License mobility

If you want to run application servers like SQL Server or BizTalk Server on cloud platforms like AWS or Azure, Microsoft offers License Mobility through its Software Assurance program on eligible products. It’s crucial to ensure your application servers are eligible for license mobility. 

Windows Server licenses are not eligible for License Mobility. Your SQL Server license, if it’s covered by an active Software Assurance program, will be eligible for License Mobility. This means you can use the license you already paid for to run your SQL Server instance in the cloud without having to pay more.

Hybrid and multicloud options

Many businesses want some operations to run via the cloud and others conducted through servers in data centers they own and control. Fortunately, AWS and Azure provide robust support for companies that want to operate a hybrid cloud. Still, the vendors have slightly different approaches: 

  • AWS: If you want to run a hybrid or multicloud solution on AWS, you need its hardware and one node. AWS allows you to run compute, storage, databases, analytics, ML and IoT services seamlessly across hybrid environments.
  • Azure: With Azure, you can purchase hardware from different vendors, but you’ll be required to have a minimum of four nodes. Azure supports all services similar to AWS, including machine learning through Azure Machine Learning and also offers edge computing solutions like Azure IoT Edge.

Both providers offer support for hybrid and multicloud users, including integrations with existing cloud environments. If you want to run contained-based applications, Azure Arc is probably the best current option because of its greater flexibility in multi-cloud scenarios.

FYIDid you know
Cloud service providers go to extraordinary lengths to protect their clients' confidentiality with high-grade cloud data encryption. So, even if a hacker does get in, it's almost impossible for them to crack the encryption to get to your company's raw data.

Government in the cloud

Both Amazon and Microsoft have dedicated government areas of their clouds to meet strict compliance requirements, including International Traffic in Arms Regulations, Defense Information Systems Agency, Health Insurance Portability and Accountability Act, Criminal Justice Information Service and Federal Information Processing Standard. These areas are cordoned off from all other workloads and are accessible by screened United States persons only.

AWS has had the lead over Azure in this department, but the gap is closing between the two providers. Azure has the same necessary certifications as AWS and some agencies have favored it. For those who have used Microsoft software historically, Azure may be easier to integrate as long as its platform offerings meet your requirements.

Open-source capabilities

You wouldn’t immediately think of Azure for open-source needs as Microsoft’s relationship with the open-source community has never been great. In contrast, Amazon has been Linux-friendly from the start and the company has never expressed suspicion about open-source software. Developers were more likely to be comfortable with AWS and its open-source tool integrations because of the vendor’s hospitality.

Today, Microsoft is catching up. Azure has gradually opened its doors to open-source developers by forming partnerships with various open-source communities to enhance its support for the sector.

While AWS might still be the better option for some open-source use cases, don’t dismiss Azure without evaluating how well the platform now supports open-source needs. The gap between the two vendors is closing fast.

TipBottom line
Licenses governing open-source software allow users to change the source code. You can sell modified versions of open-source software as long as you make your code freely available to others.

Alternatives to AWS and Azure

Azure and AWS aren’t the only cloud infrastructure providers available. Google Cloud is probably the best-known alternative. Depending on your needs, you may also wish to check out IBM Cloud, Oracle Cloud Infrastructure and the SAP Business Technology Platform. 

If you already use other Oracle products, this vendor may be more appealing as a cloud provider. For example, our review of Oracle NetSuite accounting software notes how easily it integrates with Oracle’s suite of business solutions. For some companies, it’s simply more straightforward to have all services with one vendor.

FYIDid you know
Top cloud storage services for business include AWS, Box, Carbonite, Dropbox for Business, Microsoft OneDrive and Google Workspace.

Testing the clouds

Sometimes, you don’t know whether a product will work for you until you try it. Thankfully, Amazon and Microsoft both allow you to set up free accounts. These are great opportunities to determine which platform is better for your business.

Try these two clouds and see which suits your needs better. If AWS isn’t for you, the features of Amazon Business may still be worth exploring. We’re pretty sure Microsoft won’t mind. 

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Mark Fairlie
Written By: Mark FairlieSenior Analyst & Expert on Business Ownership
Mark Fairlie brings decades of expertise in telecommunications and telemarketing to the forefront as the former business owner of a direct marketing company. Also well-versed in a variety of other B2B topics, such as taxation, investments and cybersecurity, he now advises fellow entrepreneurs on the best business practices. At business.com, Fairlie covers a range of technology solutions, including CRM software, email and text message marketing services, fleet management services, call center software and more. With a background in advertising and sales, Fairlie made his mark as the former co-owner of Meridian Delta, which saw a successful transition of ownership in 2015. Through this journey, Fairlie gained invaluable hands-on experience in everything from founding a business to expanding and selling it. Since then, Fairlie has embarked on new ventures, launching a second marketing company and establishing a thriving sole proprietorship.
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