Microsoft Stock 'Inexpensive' As Big Upgrade Cycle Looms - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
7/30/2010
12:25 PM
Bob Evans
Bob Evans
Commentary
50%
50%

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.

RECOMMENDED READING:

Global CIO: Who Is The Tech Sector's #1 Acquisition Target?

Global CIO: Top 10 Reasons Steve Jobs & Apple Are The Future Of IT

Global CIO: IBM Doubles Down On Red-Hot Optimized Systems

Global CIO: Oracle's Top 10 Retail Insights A Must-Read For All CIOs

Global CIO: Apple CEO Steve Jobs Should Tell Sen. Schumer To Shut The Hell Up

Global CIO: In Database Wars, Oracle Blasts IBM And Microsoft

Global CIO: Five Big Questions For Microsoft

Global CIO: Larry Ellison's IBM-Slayer Is Oracle Exadata Machine

Global CIO: Larry Ellison's Hardware Boasts Are Nonsense, Says IBM

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Commentary
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Slideshows
Flash Poll