There’s proof Microsoft is building their own Linux distros especially suited for Azure.
From Microsoft’s blog:
The Azure Cloud Switch (ACS) is our foray into building our own software for running network devices like switches. It is a cross-platform modular operating system for data center networking built on Linux. ACS allows us to debug, fix, and test software bugs much faster. It also allows us the flexibility to scale down the software and develop features that are required for our datacenter and our networking needs.
Microsoft didn t divulge all the details of its Nano Server and Docker container strategy in its blog posts, and it is holding its cards close to its vest until Build and Ignite.