According to Atlantic Equities, Azure has replaced the Windows as Microsoft’s key enterprise offering and is set to the top $100 billion in revenue over the next decades.

Microsoft’s conversion into the cloud-based technology which opens up new, profitable markets for the software giant which gave its stock as an overweight rating, according to the Atlantic Equities.

The analyst James Cordwell recently said to clients in a post that the company’s organizational changes for the better capitalize on its cloud computing businesses which are known as Azure and is set to be a key profit driver. And the previously rating of the firm’s under another analyst was neutral.

Cordwell also wrote that Azure had replaced the Windows as the platform supporting Microsoft’s enterprise offering, and they predict, it is exceeding approximately $100 billion in revenue over the next decade. With the Office 365, now the Microsoft has established a very strong position in the software as a service market, and there remains the robust growth perspective as the greater convenience of the cloud delivery model which continues to drive the expansion in the user base, and the customers progressively upgrade from basic packages.

Cordwell’s targeted the Microsoft price almost $125 that represents 24 percent upside.

The competition in the cloud computing space is on the increase as Amazon Web Services and Microsoft’s Azure compete for the dominance of the enterprising software business.

However, previously, appears to be rapidly found a foothold in the space and also eating into the Amazon’s stronghold, with the company’s all over a share of the market jumping to almost the 13 percent from 10 percent approximately one year ago, according to the findings from the Canalys and Synergy Research Group.

Cordwell said that when the Azure is not going to establish any of the monopoly position that the Windows enjoyed, so we believe that it is addressing a much larger market which still on the early stages of development. We model the Amazon Web Services and Azure which is reaching $185 billion and $115 billion revenue in 10 years’, implying the roughly 70 percent of the combined share of the market at that time.

The analyst also forecasts that the Redmond, it is a Washington-based company will report the fourth-quarter earnings per share of $1.09 and also full-year EPS of $3.87, only above agreement estimates which are provided by the FactSet.

In the latest report, Microsoft was posted revenue and earnings results that were easily topped the Wall Street estimates, and also raised its sales expectations for later in this year.

The Chief Financial Officer Amy Hood said that the company’s upcoming fiscal year 2019 would explain the continued revenue growth which is driven by the evolution to cloud services.

According to its earnings statement, in general Microsoft’s revenue rises 16 percent year over year in the quarter. It was one of the third quarter of the company’s 2018 fiscal year.

However, the shares of Microsoft fell 1.4 percent. And the stock is up more than 17 percent since last year and also up 41 percent over the past 12 months.

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