Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

Microsoft could be the biggest SaaS player, says FBR analyst

18/06/2014 by

W1siziisijiwmtqvmtavmjgvmtuvmzcvmdcvmzu3l2zpbguixsxbinailcj0ahvtyiisijywmhg0mdbcdtawm2uixv0

Microsoft could be the biggest SaaS (software as a service) player in the world in two years, according to FBR analyst Daniel Ives.

Ives said he was optimistic about the vision of Microsoft chief executive Satya Nadella (pictured) for SaaS product Office 365, and the company’s cloud computing and mobile strategies.

“It is really more about Office 365,” said Ives in an interview for the CNBC programme Fast Money, explaining why now is the right time to invest in Microsoft shares. “Everything we see on cloud really signifies a turnaround,” he said. “We could view a $4bn to $5bn revenue stream [for Microsoft].”

According to Ives, Microsoft Azure is “on the heels” of Amazon Web Services. “Office 365 penetration is tiny today,” he said. “But if it takes off from a cloud perspective, the company could start to grow in high single-digits and get away from the challenging PC market.”

This, combined with what Microsoft is doing in the mobile and tablet space, means “you finally feel like there’s a pilot on the plane after 10 years of pain”, said Ives. Nadella’s mobile strategy includes the decision to offer free Windows on some mobile devices.

“What he [Nadella] is starting to do on mobile, and the turnaround, we could see an incremental 40 cents to annual earnings, and that really gets us incrementally positive on the name,” said Ives.

Ives upgraded Microsoft’s status from “market perform” to “outperform”, which saw Microsoft stock trade up 1.5% in intra-day trading on the US stock market last week.

In February 2014, Microsoft’s board appointed Nadella as its third CEO. Nadella, born in India, was previously executive vice-president of Microsoft’s cloud and enterprise group and has been with the company 22 years.

This article has been extracted from http://www.computerweekly.com, please click on this link to read the article in full http://www.computerweekly.com/news/2240222124/Microsoft-could-be-the-biggest-SaaS-player-says-FBR-analyst-betting-on-Satya-Nadella

Montash is a multi-award winning, global IT recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Scientific Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmdevmjavmtavntyvmtkvnzgzl0nsts5qcgcixsxbinailcj0ahvtyiisijm4mhgxmdajil1d

Salesforce moves into Seattle with new engine...

2017-01-20 10:00:00 +0000

Salesforce, a world leader in customer relationship management (CRM) solutions, has revealed that it is to open an innovation and engineering hub in Seattle. In order to increase the firm’s presence in the city, Salesforce Co-Founder Parker Harris said that the office located in Bellevue’s Nine Two Nine Office Tower will focus on its artificial intelligence (AI) initiatives. One reason for the move is so that the firm can access a new pool of talent. Ta...

W1siziisijiwmtcvmdevmtgvmdkvmtqvmzmvmzk5l0vsuc5qcgcixsxbinailcj0ahvtyiisijm4mhgxmdajil1d

Sage bolsters X3 business ERP solution

2017-01-18 09:00:00 +0000

Sage, one of the global leaders in enterprise resource planning (ERP) solutions, has revealed that it has signed up a trio of new clients to its X3 business solution. With the Salesforce.com partner wanting to be able to show its ability to host larger clients, the firm revealed that BrightBridge, Atlas Cloud and CLOUT are all now utilising the new and emerging X3 ERP platform. Sage Vice President of UK Enterprise David Watts talked about the latest agr...