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Microsoft Corporation Walloped By This Alphabet Inc Secret Weapon

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Microsoft Corporation (NASDAQ:MSFT) is doing well for itself and its shareholders. The firm’s troubles are set to smooth out over time too, says one Cowen analyst. Cowen researchers doubled down their “Outperform” rating of the company this week. The Windows giant under CEO Satya Nadella got a slight price target bump too. From $80, MSFT shares are now pegged to hit $85.

Recent weeks also show more favor over the company’s cloud successes. However, Google is not too pleased with its lack of cloud fanfare. News reveals the web major taking aggressive measures to turn things around.

Microsoft (MSFT) and Google (GOOG)

Microsoft Corporation (NASDAQ:MSFT) and Alphabet are going head-to-head in the war for cloud supremacy. The makers of the fast growing Azure cloud platform have a clear interest in retaining their hard-won user base. Although considerably young, Microsoft’s Azure is the second most widespread public cloud platform around. It lags behind Amazon Web Services, but its rapid climb is nothing to ignore.

Google’s parent company, Alphabet Inc (NASDAQ:GOOG), isn’t going to take this sitting down though. The web giant holds clear ambitions of online dominance in all its forms. That involves knocking the likes of Azure off their pedestals too. Once clashes like this get heated, there is bound to be some kind of foul play. Last week saw exactly that, as news came forward about Google G Suite poaching a key MSFT cloud user.

The Google G Suite is a major component of the Google Cloud unit. It incorporates a wide range of online cloud apps, much like that of the Microsoft Office 365 suite. Products featured in the G Suite include platforms like Google Docs, GMail, Calendar and Drive. In short, the G Suite is a brand of cloud computing, productivity and collaboration tools, software and products developed by Google.

Neilsen Holdings just made a massive transition. The company moved 56,000 of its workers, who were all Microsoft Corporation (NASDAQ:MSFT) cloud users, to Google G. This took place some months ago, but was only recently disclosed.

It is actually a rare win for Google and its cloud ventures. The G Suite plays second banana to Microsoft ever since Azure rocked up. The arrival of of the MSFT cloud winner quickly made the Redmond firm the king of corporate cloud.

In contrast to the Google G Suite, the Microsoft cloud is around 4 times greater. This according to research by Gartner Inc, which depicts Google’s cloud market position clearly. The Alphabet Inc (NASDAQ:MSFT) subsidiary needs to win over more of the workplace productivity market. The web giant is clearly upping its aggression though in a bid to make its cloud division a more powerful income generator.

Does Google have the upper hand over Microsoft now?

As it turns out, Google has the upper hand when it comes to younger individuals. A generation brought up on Gmail and Google is more inclined to G Suite. This is according to Google’s cloud executive Diane Greene.

Sixty percent of Neilsen’s workforce is below the age of 35. Naturally, the Google G Suite was right up their alley. “Those millennials are coming to Nielsen with experience coming up on Google,” she said. “We’re actually seeing that as a great recruiting tool.”

However, Microsoft Corporation (NASDAQ:MSFT) has very little to fear when it comes to its cloud dominance. Its latest quarter results reveal a near 100 percent climb in cloud-related revenue. Cowen cites a host of 2018 financial year estimates. Among them are Azure and Office 365, which are pegged to grow significantly moving forward. Safe to say, this latest poach by Google is small stumble in MSFT’s climb in the cloud market.

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Mvusi Ngubane

1 Comments

  1. MS top web site is #16 while Google has #1 and #2. MS lost over 300m browser users in 2016 with majority going to Google Chrome. Google has crushed MS in with the browser on their own platform. MS mobile has fallen to .1% while Google has over 85% share. MS Bing share has fallen below 3% for all platforms and globally while Google has about 92% share. But it is education where Google is just destroying MS. Just think where MS would be today if Google did not exist?

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