Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Microsoft Azure to Disproportionately Benefit from Accelerated to Public Cloud, Credit Suisse Says

Stock Markets Jun 16, 2022 16:32
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Shift to Public Cloud Credit Suisse (SIX:CSGN) research analysts led by Phil Winslow provided a deep dive into Microsoft's (NASDAQ:MSFT) cloud computing service product Azure.

In the wide-ranging research note, the analysts told investors that they expect Microsoft Azure, as the “enterprise cloud,” to disproportionately benefit from an accelerated shift to the public cloud.

Winslow said they also anticipate Azure will; continue to narrow the revenue gap to Amazon (NASDAQ:AMZN) Web Services, which is currently number one in the field. In addition, Google (NASDAQ:GOOGL) Cloud is said to be driving sustained growth for Microsoft and a meaningful upside to the consensus estimate.

"Businesses are intently moving forward on multi-year, “strategic” cloud-first transformation roadmaps—a transition from the initial rush into the cloud as a means to “triage” IT systems during the COVID-19 pandemic," wrote the analysts. "Although Wall Street remains largely positive on Microsoft, we believe the full multi-year impact of Azure’s growth opportunity is still not properly reflected in consensus estimates."

The analysts also compared the revenue growth of Azure and Amazon's (AMZN) AWS.

"Azure has grown meaningfully faster than AWS when achieving revenue run-rate milestones of ~$500 million, ~$1.0 billion, ~$1.5 billion, ~$2.5 billion, ~$3.25 billion, ~$4.0 billion, ~$5.0 billion, and ~$7.5 billion and continued to grow faster after reaching these benchmarks as compared with AWS," said Winslow. "However, after achieving a ~$10.5-billion run-rate in Q2 FY2022, consensus forecasts Azure’s growth differential narrowing completely within four quarters and then inverting relative to AWS’s growth in the corresponding periods after achieving a run-rate of ~$10.5 billion, which we view as overly conservative considering Azure’s sustained outperformance following all eight preceding benchmarks."

By Sam Boughedda

Microsoft Azure to Disproportionately Benefit from Accelerated to Public Cloud, Credit Suisse Says
 

Related Articles

Dow futures Dip After Strong Jobs Report
Dow futures Dip After Strong Jobs Report By Investing.com - Aug 07, 2022

By Oliver Gray Investing.com - U.S. stock futures were trading lower during Sunday’s evening deals, with major benchmark averages coming off a positive week as stronger than...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email