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Yes. You did not misunderstand: Microsoft really own distribution of the open operating system Linux. It will be called Azure Cloud Switch (ACS), and in short it can be described as a cross-platform modular operating system for managing data centers.
You probably know that at the disposal of Microsoft there is Azure's own cloud platform, which allows you to store and process huge amounts of data, remotely execute various applications and even gives the Xbox One game console additional processing power. To date, Azure data centers have more than 300,000 powerful servers.
Microsoft believes in the future of open networks, so ACS is primarily aimed at simplifying the configuration, monitoring, diagnostics and management process of data centers and huge arrays of network switches (popularly known as "switches") of various manufacturers. ACS, according to the press release, will take full advantage of the Linux ecosystem. Of course, the system will support not only the software produced for it by Microsoft, but also any other open source software.

The press release does not say openly why Microsoft decided to use Linux as the basis for this distribution. But, most likely, the reason is the fact that most of the network equipment is running Linux, sewn into NAND-memory devices, and it was unlikely that Microsoft would be able to persuade manufacturers to change their approach.
Well, Linus Torvalds can open champagne for this, let it be and a little, but about it. Many of us could not imagine that Microsoft would one day go on such an unusual step. But the IT industry is developing, and even giant corporations understand that a monopoly approach to the market is not always beneficial.
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