Microsoft Stock 'Inexpensive' As Big Upgrade Cycle Looms
With 84% of global PCs still running XP/Vista and 63% of Office users still on versions from 2003 or earlier, Microsoft is looking at some serious growth potential over the next couple of years, says enterprise software analyst Brent Thill.
With 84% of global PCs still running XP/Vista and 63% of Office users still on versions from 2003 or earlier, Microsoft is looking at some serious growth potential over the next couple of years, says enterprise software analyst Brent Thill.In a research note issued with "Woodstock for Analysts" in the subject line, Thill-head of software research at UBS-said those numbers indicating a huge volume of aging Microsoft products indicates that "MSFT is in a very strong position to capitalize on the PC/Server refresh."
Thill added, "FY11/12 will be driven by a very promising upgrade cycle and in our view MSFT is well positioned post-product cycle with a robust cloud strategy."
Regarding Microsoft's Azure strategy, Thill wrote that "70% of FQ4 cloud wins were new customers suggesting cloud can be additive vs. cannibalistic. Its biggest challenge is in getting channel partners behind its cloud efforts."
Those factors plus Thill's belief that Microsoft will make a serious run at the tablet business led him to peg Microsoft's current stock price as "inexpensive" and worthy of a buy rating, with a price target of $35.
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
2017 State of IT ReportIn today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.