“With Public Cloud adoption expected to grow from 21% of workloads today to 44% in the next three years, Microsoft looks poised to maintain a dominant position in a public cloud market we expect to more than double in size to (more than) $250 billion dollars,” analysts Keith Weiss and Melissa Franchi wrote.
Morgan Stanley analysts cited results from a recent survey of chief information officers that highlighted preference to cloud services versus local servers. Large companies are predicted to channel more of their tech budgets to cloud computing with Microsoft, Amazon, and Cisco in the next few years.
Microsoft still has other business lines, like the Xbox gaming segment and social networking through LinkedIn, that can contribute to its robust growth. However, investors are still betting on Microsoft’s cloud business to primarily drive sales and profit surge of nearly 10 percent in the following years.