Microsoft Corporation (NASDAQ:MSFT)’s Cloud plans may seem going in the right direction these days, but the reality could be different. Microsoft’s CEO Satya Nadella, since his first day in the office, is emphasizing the importance of Cloud for the company. Microsoft Corporation (NASDAQ:MSFT) is planning to scale its commercial Cloud revenue to $20 billion by 2018. An article on WSJ said that Microsoft’s plans are ambitious and they could damage the core business of the company. The main reason behind Microsoft Corporation (NASDAQ:MSFT)’s problems in the Cloud is the increasing saturation in the market. With players like Google Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN), Microsoft could not keep the balance. The source also said that Microsoft Corporation (NASDAQ:MSFT)’s biggest problem is its core business revenue stream. It imbibes major portion of its money from the PC market, which is going flat around the world.
Microsoft Corporation (NASDAQ:MSFT)’s Cloud business has a major threat from Amazon.com, Inc. (NASDAQ:AMZN) and Google Inc (NASDAQ:GOOGL). The source said that Microsoft Corporation (NASDAQ:MSFT) is looking expensive as it is currently trading many times forward its position. But at the same time, Microsoft is the only Cloud company which is the least expensive way for the investors to make their way in the Cloud. Amazon.com, Inc. (NASDAQ:AMZN) and Google are mostly tapping the high-end of the market.
Microsoft Corporation (NASDAQ:MSFT) is still determined to continue with its Cloud business goals. The company could compete with Amazon.com, Inc. (NASDAQ:AMZN) and Google Inc (NASDAQ:GOOGL) at the high end of the market if it could create useful products for the Enterprise.
As of 30 June 2014, Ken Fisher’s Fisher Asset Management hold around 17.7 million Microsoft Corporation (NASDAQ:MSFT) shares.
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