Microsoft Corporation (MSFT) Returns To Haunt Google Inc (GOOGL), Amazon (AMZN) In Cloud Services


If Microsoft Corporation (NASDAQ:MSFT) was ever seen as losing its edge in the business, especially because of the troubles in the PC market, the company is returning with a bang and Google Inc (NASDAQ:GOOGL) and, Inc. (NASDAQ:AMZN) may soon not be at ease in cloud service business despite their current leading position in the segment, as re/code wrote in an article citing a report from Pacific Crest Securities.


According to market findings compiled by researchers at Pacific Crest Securities, Microsoft’s cloud service is gaining currency in the competitive enterprise cloud market. The CIOs contacted by Pacific Crest Securities showed favoritism for Microsoft‘s cloud products, and they expect to increase their spending on the same in the coming year. The CIOs prefer Microsoft’s Azure and Office 365 to, Inc. (NASDAQ:AMZN)’s Amazon Web Service and Google Inc (NASDAQ:GOOGL)’s  Cloud.

“Ten percent said they intended to boost their spending with Google, while seven percent said they would spend more with with AWS,” said the report.

As for the cloud spending by CIOs, only VMware surpasses Microsoft.

Microsoft Corporation (NASDAQ:MSFT) appears to be leaving no stone unturned in strengthening its business, especially the cloud services segment, now that the company understands that the PC market has little to offer. In a recent interview, Microsoft’s CEO Satya Nadella pointed out that their cloud business was performing well and was on the verge of turning in $4.4 billion in revenue.

“Microsoft will treat Office 365 sales as subscriptions, so that that earnings growth will become both recurring and highly predictable,” re/core quoted Brendan Barnicle of Pacific Crest Securities as saying.

According to Pacific Crest Securities, CIOs love adopting Microsoft Corporation (NASDAQ:MSFT)’s cloud solutions because they work nicely with their existing infrastructure. Furthermore, they also get access to more Microsoft products through the cloud than they would get with a traditional software installation.

The CIOs study captured 152 companies that have more than a thousand employees, which is an enterprise segment that is somehow a domain of Microsoft Corporation (NASDAQ:MSFT).

Disclosure: none

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