Microsoft Gains Momentum In Cloud Computing Domain
Microsoft PC sales face slowdown amidst great cloud computing performance.
Microsoft Corporation has been struggling with weak sales in the PC market but the company’s cloud computing domain and other divisions, such as virtual reality, are likely to add value to their financial position in the times ahead.
The analysts at Pacific Crest Securities are of the view that the company’s annual developer conference “Build”, which will take place in San Francisco this week will be a positive ray of hope for them where it will discuss the expansion in its portfolio and also add weightage to the long term growth prospects of the organization.
The reason why Pacific Crest holds this perspective is the information acquired from system integrators and several consumers during the Google Cloud Platform (GCP) Next event, which was also hosted in San Francisco a week ago. The survey deduced that the cloud business of Google was gaining momentum but users were not willing to give up on Microsoft Azure cloud-computing platform either. Users held the opinion that the utilization of Azure is extremely robust amongst the corporate sector since they are moving data computing to public cloud.
It is also assumed that Microsoft will give an update regarding Azure Stack platform during Build. This will enable the organizations to manage its data server through a hybrid cloud computing setup. This is an indicator that the company will get business from the corporate sector, which makes hefty investment in establishing its own data centers. They will not move to public clouds in the times to come at least.
Analysts are also expecting that the company will explain about the level of clarity and openness is present in the Universal Windows Platform (UWP). The platform has garnered a lot of criticism since the new features of Microsoft Windows on PC are limited to UWP in terms of game development. This limits the usage of other platform establishing a monopoly in this domain. It is also speculated that UWP utilization is likely to bolster if the company manages to respond well to critics.
In terms of the mobile domain the software giant is likely to surface, an update regarding its Continuum program and cross platform development. Continuum allows phones to be connected to various gadgets like monitors and keyboards. The event will also shed light on how applications can be sent to Windows Mobile from other operating system. This compatibility can change the game for Windows Mobile in the times to come.
Irrespective of all the growth prospects, the PC market slowdown will continue to haunt the company performance in the times to come. The PC industry constitutes almost 20% of the company’s overall revenues. This is why a great chunk of the company’s revenues depends on the PC industry in general. Thus, analytical firms like Pacific Crest have now tweaked the Microsoft stock price as of yet.
The company has evolved largely with cloud computing and other segments doing fairly well. However, PC slowdown continues to haunt their existence.
