Microsoft Heading Toward All-Time High On Strong Cloud Momentum

Summary

Microsoft has just announced its FY14 sales growth cloud the fourth quarter by a whopping 147% trade every year. Microsoft and Cisco have signed a multi-year agreement on the modernization of data centers concentrated. He expects the deal to be very beneficial for companies Microsoft hybrid cloud. There is a strong possibility that Microsoft's actions to peak in the vicinity of $ 57 when the market supports.

Microsoft (NASDAQ: MSFT) and Cisco (NASDAQ: CSCO) recently announced a multi-year marketing and partnership agreements on the market focused on the modernization of data centers through integrated delivery and acceleration solutions for enterprise customers and service providers.Under the agreement, Cisco will help 2012 R2 guests on the Cisco UCS platform migration from Microsoft Windows 2003 to Windows. In this article I will as the agreement could be beneficial for Microsoft to focus.

Microsoft has just released the fourth quarter of FY14 known result. The company reported earnings of 55 cents per share on revenue of $ 23.38 billion, up 17% over last year. Microsoft cloud-trade sales increased 147% compared to the previous year ($ 4.4 billion run rate/year),indicating that the enterprise cloud enterprise is dynamic.Satya Nadella, CEO of Microsoft, said: "I am proud that our aggressive move into the cloud,paying off our commercial cloud sales doubled again this year at an annual rate is $ 4,400,000,000.

The Deal Will Help Microsoft Attract More Hybrid Cloud Customers

Microsoft and Cisco have agreed to work on a three-year go-to-market plan, one of which is the long-term impact that Microsoft cloud operating system solutions,including Windows Server, System Center,SQL Server and Microsoft Azure,supply during Cisco deliver its hardware including Cisco Unified computing System and Cisco Nexus switching.

The agreement will help Microsoft to strengthen its presence in data centers worldwide, which would help the company attract more customers in hybrid cloud.It is known that the adoption of hybrid cloud is increased at a rapid pace throughout the world.Since hybrid cloud allows a company,some resources in-house and other externally manage the organization remains in an advantageous position in terms of scalability and efficiency.

With comprehensive hybrid cloud, Microsoft is extending the Data Center of Windows Azure in the cloud. The company recently announced that it is integrating its data storage devices StorSimple deeper into its Azure cloud. StorSimple will use Azure instead of solid-state or hybrid hard drives for automatic capacity expansion and off-site data protection. This will help customers save time for upgrades and Privacy Policy and in the event of a disaster happens faster data recovery is possible. Microsoft said:

To demonstrate these new solutions, such as Microsoft to bring the cloud the best of local memory together to the bottom line savings to customers by the storage costs from 40% to 60% and helps IT teams to deliver more on business strategies as infrastructure management.

Microsoft Azure cloud services to help customers integrate their fixed VMs (virtual machines) with various cloud operating system solutions company. The new partnership between Microsoft and Cisco enables Microsoft to a steady growth in market share in hybrid cloud, with Cisco already enjoy market leading positions in hardware with its revenue-leading products, such as for example to achieve blade server.

Is Microsoft a "Buy?"

In an article on Microsoft in late 2012, I predicted that the stock could be 30% higher than $ 28,the price at which Microsoft was at that time.In absolutely trade my target price was $ 36.40,I provided the launching of the companies are based Surface.Currently Windows 8 and the stock is trading around $ 45 and I think that has a little more left in the head.

In the third quarter of FY14 sales of Microsoft Azure grew more than 150% and the company said it introduced more than 40 new features that create attractive applications for the Azure cloud platform cloud developers.I that Microsoft would continue to boost the top sales. After the alliance with Cisco,the enterprise cloud company is continuing to collect momentum .Further,is also expected to be business company business than stellar growth record by increasing acceptance of Office 365,the revenue increase of more than 100% in the third quarter.

Technical Picture

Technically, the outlook for Microsoft is bullish as long as the stock trades above its 50 DMA level, currently which is standing at $41.44. Furthermore, with the stock just breaching the upper limit of the Bollinger Bands at $45, more upside in the short-term should be in the cards. I believe that it's heading toward $48 in the short-term and $57 in the medium-term.