Microsoft Not Giving Up Against Amazon – The War Rages On

Goldman Sachs recently upgraded Microsoft (NASDAQ:MSFT) to buy from neutral, and raised price target to $68 from $60. Goldman Sachs believes that Microsoft’s gross profit will grow at an accelerating pace and gross profit margin will improve due to Azure’s cloud opportunities.

Since profitability is a matter of managerial accounting and difficult to predict, I’m not sure about profitability. However, I believe Microsoft’s revenue will rise significantly going forward since the company is offering customers the world’s most sophisticated, advanced and diversified container support via its recent launch of Windows Server 2016. Containers also will help Microsoft win the war against Amazon’s (NASDAQ:AMZN) AWS despite the latter’s recent deal with VMware (NYSE:VMW).

Containers: Microsoft’s New Growth Driver

Windows Server 2016, Microsoft’s latest server operating system, will help Microsoft’s customers run applications both off-premises (via Azure) and on-premises with equal efficiency, which will make Microsoft a stronger hybrid cloud player in the IaaS (Infrastructure-as-a-Service) market. Containers will help Microsoft boost its cloud revenue.

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