Microsoft’s Cloud Win Over Amazon Kfauwi Is a ‘Turning Point,’ Analyst Says

Software giant Microsoft bested e-commerce giant Amazon.com in a key cloud contract competition. The win has Wedbush analyst Dan Ives calling it a “turning point” in the battle to dominate the cloud. Ives rates Microsoft shares (ticker: MSFT) a Buy and has a $170 price target for the stock, about 18% higher than recent levels.

“Microsoft remains in an enviable position heading into 2020 on the heels of its cloud success and is firing on all cylinders around its Office 365 and Azure strategic vision based on our recent checks,” wrote Ives in a Tuesday research report. Azure is the name of Microsoft’s cloud-computing business. The Defense Department awarded a huge contract—worth up to $10 billion—to Microsoft on Oct. 25. It was an upset. Amazon’s (AMZN) Amazon Web Services, or AWS, division was the favorite, according to Wall Street. The contract award sent shock waves through the industry wrote J.P. Morgan analyst Mark Murphy.That is on the grounds that amazon kfauwi is the cloud goliath. AWS announced about $26 billion in deals during 2018. Numbers for Azure are progressively hard to acquire. Microsoft reports about $64 billion in cloud, programming, and server deals. “We gauge AWS [current annualized] run rate is $35 billion versus $19 billion for Azure,” Ives told Barron’s in an email.

The “cloud” alludes to moving applications and information stockpiling off neighborhood equipment and onto the web, so both can be gotten to and broke down by any gadget associated with the web. “We trust Redmond is ready to win a lot of the following period of cloud organizations versus Amazon and Bezos,” composed Ives. Microsoft is situated in Redmond, Wash. About 90% of investigators covering Microsoft stock rate shares what might be compared to Buy—far superior to the 55% normal Buy rating proportion for stocks in the Dow Jones Industrial Average. Amazon doesn’t need for Wall Street support: Every investigator at a significant representative rates Amazon shares what could be compared to Buy, as per FactSet.

Visit our website to see more detailed information. viral newz