Microsoft Embracing Cloud Technology Garners Institutional Interest

Microsoft (NASDAQ:MSFT) has been behind Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL) in the race to seize the huge prize of market dominance in the massive Cloud Technology Industry. With several major US Industries gearing up to invest heavily in Cloud Technology Infrastructure in the next three years, Microsoft has plenty of catching up to do.

Now that mobile has been proven to be extremely popular with both business and consumer customers, Microsoft is shifting away from its PC mentality which has thwarted its efforts to keep up with primary competitors in the Platform as a Service PaaS, and Software as a Service SaaS market niches.

With a new CEO that is moving more aggressively, institutional investing has risen over the past few months. Adding to their held shares Goldman Sachs, Fidelity, State Street, Vanguard, Morgan Stanley, Blackrock, and Bank of America add up to an impressive list of both Buy Side and Sell Side Institutions that are showing more confidence in Microsoft stock growth potential. Institutional ownership is up approximately 4% over last quarter.

Microsoft stock has moved up out of a congested sideways pattern to a price it has not seen since 2000, a major achievement for a stock that has been trapped in a 14 year sideways price range. This is good news for Microsoft investors as the more institutional interest, the stronger and more stable the stock trends tend to be.

In 2011, Cloud Technology first became a viable new technology, suddenly changing how small businesses to large enterprises were using IT technology. At that time, Microsoft resisted the change. They held fast to the concept that somehow they could maintain PC networking, and simply loosely tie its benchmark PC and Windows operating system to the Cloud.

Unfortunately, that was a serious mistake on the part of corporate officers at that time. Resisting rather than embracing the changes Cloud computing was creating everywhere within the computer industry set Microsoft back significantly, while Amazon and Google snatched #1 and #2 dominance of a newly emerging technology.

Where Microsoft had once been the leader in innovative computing technology, it had fallen behind, clinging to the notion that it could single handedly save the PC industry. It took a long time for Microsoft to accept that the PC was no longer the “gotta have” computer technology of the consumer and small businesses. Dell’s fate was a wakeup call. Either Microsoft had to change its posture toward Cloud computing or face being left behind, while primary competitors and new young companies reshaped IT departments in every major industry in the US.

Now the focus is all on mobile, social, and digital interaction. With a new perspective embracing the mega Cloud Industry which is expected to exceed 225 billion dollars in 2015, Microsoft has the potential to carve out a niche.

Microsoft’s Enterprise marketing strategy focuses on “reimaging your business in a mobile-first, cloud-first world” and is being well received. With new websites that are interactive and packed with videos appealing to their younger clients and new small businesses, Microsoft is behaving more like the aggressive marketing company it was in the 1990s. Microsoft is emphasizing the transformation of businesses to digital businesses using Cloud Computing across the entire enterprise.

A Great Bull Market occurs when there is an influx of new money and new technologies spurring the growth of new small businesses that grow exponentially, as Microsoft did in the 1980’s and 90’s creating economic prosperity and job growth. Currently the New Cloud Technology Industry is fueling a huge growth potential as the Financial Industry, Manufacturing Industry, Healthcare Industry, and Retail Industry prepare to incorporate Cloud computing to a mass market level.

The Cloud Industry is currently at the Market Acceptance Phase which means the growth years are still ahead. Fortunately a new CEO and a renewed respect from the most important institutions is helping lift Microsoft stock.