Strength 3: IaaS Advantages
Microsoft Azure has been clocking triple-digit growth speeds in the last four quarters. That’s massive growth in an industry that is getting increasingly competitive with Oracle Corporation (NYSE:ORCL) and Google recently throwing their hat into the ring. Microsoft Azure will stand out from the crowd due to their strength in the SaaS market, which is something that no one single Cloud Service Provider (CSP) has at the moment at such scale. This will allow back and forth sales from both ends – a Microsoft Azure customer adding Office 365 to their plan or vice versa because each service is just a click away.
These three strengths will play a huge role in Microsoft’s future, and with the acquisition of LinkedIn closing recently, Microsoft will have access to a huge pool of enterprise/business customers which should provide their cloud and office applications a nice short-term surge and long-term sustainability. When the world’s largest professional cloud meets the world’s largest professional network, there will be a lot of synergies that Microsoft will be able to exploit.
“LinkedIn also could supercharge Microsoft’s Customer Relationship Management (CRM) software, used to identify and track sales leads. Microsoft is in fourth place in market share among the large CRM players, including Salesforce.com Inc., SAP SE and Oracle Corp.” Wall Street Journal
What This Means in Terms of Investing
Microsoft Corporation (NASDAQ:MSFT) has truly transformed itself after multiple setbacks over the last few years. Their multibillion-dollar Nokia acquisition didn’t pay off, and Windows sales are never going to get back to old days thanks to global PC sales, which is on its way to recording its fifth consecutive year of decline. But despite those setbacks Microsoft has clearly identified its future focus areas and the best part is that all their cloud and mobility products are aligned to business consumers.
The market has taken notice and, as a result, the stock has been pushing all-time highs. The stock is trading at 6 times sales and it looks reasonable priced at this level. If you want to get in, you can just keep adding as and when the price dips around earnings calls.
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The article 3 Strengths That Make Microsoft Corporation (MSFT) Stock A Buy Now originally appeared on amigobulls.com. Watch our analysis video on MSFT
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