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Technology Stocks : Cloud, edge and decentralized computing

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From: Sam2/4/2019 2:06:14 PM
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Enterprise Cloud Adoption Rates Rising With Microsoft, Amazon Leading Ahead of JEDI Award
MT NEWSWIRES 2:04 PM ET 2/4/2019

Symbol Last Price Change
105.44 +2.66 (+2.59%)
1636 +9.77 (+0.6%)
QUOTES AS OF 02:04:30 PM ET 02/04/2019

02:04 PM EST, 02/04/2019 (MT Newswires) -- Adoption rates in the cloud are rising among businesses, with Microsoft's(MSFT) Azure and Amazon's(AMZN) Web Services leading the way as anticipation grows ahead of the awarding of a key government contract, Wedbush Securities said on Monday.

Azure revenue grew 76% year-on-year and AWS was up 45%, quarterly reports last week showed, with Alphabet's (GOOGL) a "distant third" with more details to be given later Monday in its own earnings, analysts Daniel Ives and Strecker Backe said in a note.

Microsoft (MSFT) "continued to be in the midst of shifting its business from traditional, slow growing PCs, into a leader in the fast-growing cloud market on the shoulders of its core Azure platform," the analysis said. The cloud battle versus AWS "remains front and center" for Microsoft(MSFT) in 2019 and beyond, especially as other companies come at the cloud market aggressively from different angles, Wedbush said.

"While this will be a pivotal year ahead for Google and its key GCP endeavour, we believe Azure and AWS remain miles ahead of the nearest competitor," Ives and Backe said.

But anticipation is growing for the winner to be announced likely in late March or early April for the US Department of Defense's Joint Enterprise Defense Infrastructure, or JEDI, Cloud contract, which Wedbush said is worth $10 billion.

"All investor eyes are trying to decipher if this is an AWS win or potentially Azure given Microsoft's(MSFT) long standing DOD relationship," the analysts said. "While both Amazon(AMZN) and Microsoft(MSFT) have their proponents and critics within government circles from an IT and security perspective, based on our discussions it appears this battle for JEDI is more of (about) 60%/40% AWS vs MSFT chances to win." But that's different than the "runaway" 80%/20% for AWS a year ago, they said.

JEDI's underlying goal is to deliver a cloud services solution to support unclassified, secret and top secret requirements across the department of defense, Wedbush said.
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