The stock of Microsoft Corporation (NASDAQ:MSFT) closed at $73.65 gaining 0.59% in yesterday’s trading session. It has always been a major struggle to deliver positive sales growth for the wide array of companies that depend heavily on hardware and IT services revenue streams. However, a number of their software-focused peers are reportedly faring on much better. This particular split in the performance of enterprise IT giants has been rather outstanding over the past 12 to 18 months.
As a matter of fact, the divide tells a lot about the degree to which IT spending has over time continued shifting. What might prove difficult or impossible for a given firm to handle might just turn out to be pretty easy for another. It goes without saying that the adoption of infrastructure services and the cloud apps has become a major determinant factor. There is a clear demarcation between what certain types of old-guard enterprise IT firms are capable of and what they aren’t.
For an elongated period of time, Amazon.com, Inc (NASDAQ:AMZN) has upheld a sizeable lead in cloud computing. But at the same time, Azure is shocking many with how fast it has lately been gaining ground.
In the fiscal year 2018, Azure might hopefully be experiencing at 70% to 80% business growth. That would of course be two times the rate that Amazon Web Services posted in the recent quarters.
Evercore analyst Kirk Materne opined, “While [Amazon Web Services] remains the clear leader in terms of public cloud computing today, one of the most notable takeaways from our meetings was the improving position of Azure, both as it relates to product maturity and market presence.”
Azure takes great pride in the fact that it has a slate of new features ranging from an app for coding on different phones to the speech recognition tools. This draws it much closer to Amazon Web Services’ rich suite of tools. On the other hand, Microsoft has in the recent times refocused its sales force on the cloud.