Boston, MA 06/06/2014 (wallstreetpr) – Software developer and service provider Microsoft Corporation (NASDAQ:MSFT)’s new chief executive officer Satya Nadella’s focus on cloud computing could well be a fresh lease of life for the company, which was looking to expand in fresh areas to drive growth. This is echoed by a brokerage, which has upgraded the shares of the company and also lifted the price tag. The company had to look for different avenues to increase its revenue uptick as the PC desktop sales are witnessing a downside.
Cloud Computing
The current CEO Nadella took over the reins on February 4 replacing Steve Ballmer. Though he has initiated number steps, one of his moves related to mobile first, cloud first policy. This has probably allowed the first research company to upgrade the shares.
Cloud computing is nothing but accessing and storing of data and programs through the Internet compared storing of data into the PC’s hard drive. This platform allows companies to cut down costs to improve their margins, though it poses a security threat of loss of valuable data. However, cloud computing is a big boost for small and medium companies, though big companies too evince interest.
Cloud computing is implemented through software as a service (Saas), platform as a service (PaaS), and Infrastructure as a service (IaaS). The cloud computing market is valued around $100 billion per annum by McKinsey & Company, which claims that 80% of the big companies in North America are either ready to use cloud computing or already possesses.
Upgrading of Shares
FBR Capital Markets obviously see enough reasons in Microsoft Corporation (NASDAQ:MSFT)’s game plan on cloud computing for its future growth. The brokerage has upgraded the shares of the company to Outperform rating from Market Perform and boosted the price tag to $49 from $43, This is the first upgrade after the new CEO took the reins of the software developer.
The brokerage cited that the company is witnessing faster traction in cloud module with its Office 365 demonstrating good subscriber momentum based on March quarter results and its checks with customers.
