MSFT’s dominance in collaboration space made it a SaaS leader
Increased SaaS adoption could benefit Microsoft the most
According to Brent Bracelin, a senior research analyst with Pacific Crest Securities, “Of a total $1.3 trillion IT spend, about $60 billion is in cloud now.” If we take Gartner’s estimates into consideration, the “cloud shift” is expected to impact more than $1 trillion in IT spending by 2020, as the chart above shows.
As more companies adopt the cloud route, the SaaS model could also witness wider adoption and benefit Microsoft due to its leadership position in this space. Among its peers, Microsoft appears to be the best positioned to make a move in the cloud space. As the undisputed leader of the cloud space, Amazon (AMZN) stock received a downgrade due to the growing prominence of Microsoft’s Azure.