Microsoft (NASDAQ:MSFT) will announce the market release of
Office 365, a web-based productivity software product, on June 28th
in an event in New York. Microsoft launched the beta version of
Office 365 in the autumn of 2010, and the market release represents
a major product release from Microsoft and a symbolic move away
from the traditional way of selling software to cloud computing.
Through Office 365, Microsoft can establish itself in the
cloud-computing market as rivals like Google (NASDAQ:GOOG),
) and Amazon (
) are already well established in this market.
Microsoft Office is the most valuable business for Microsoft and
accounts for more than 30% of our
$27 price estimate for Microsoft stock
- which is around 10% ahead of the market.
Microsoft still dominates the productivity software
Even competition from Google has increased, Microsoft still
dominates the productivity software market with a lion's share of
more than 90%. Productivity software is essentially the Office
suite of products, which includes applications used primarily
for word processing, spreadsheet preparation, presentations and
Cloud computing market expected to show fast
Through Office 365, Microsoft is not only looking at
cementing its position in productivity software market, but also
ride on the faster growth expected out of cloud-computing market.
Cloud-computing is based on the concept in which the software is
delivered remotely over the Internet on an as-needed basis with
little or no implementation services required.
It is expected to result in cost saving for enterprises, which
is the primary reason why the market for cloud-computing
services and software is expected to grow more than 27% annually
over the next five years and reach $73 billion by 2015.
See our complete analysis for Microsoft stock