Back to top

Image: Bigstock

Microsoft Roundup: Teams, Surface, Azure, Notepad, Face ID

Read MoreHide Full Article

Microsoft (MSFT - Free Report) announced new products and enhancements last week, asked the government to regulate usage of facial recognition software and signed a deal with cloud-focused data warehouse Snowflake. Here are the details-

Teams

Microsoft is stepping up competition with enterprise chatting software maker Slack.

For the purpose, it has created a free tier for Teams and dressed it up with unlimited messages and search, as well as 10 GB of data storage and 2 GB extra for each team member, plus free access to online versions of Office apps to create and edit files, slides and spreadsheets. Other perks like blurring backgrounds are coming soon. The free version is available for groups of at least 300 people.

Slack has 500,000 total members, 70,000 of which are paying. It has appealed more to smaller enterprises and is now targeting bigger ones. Microsoft has 200,000 paying subscribers and no free tier. So this move will help it attract smaller players.

Microsoft’s current user base likely won’t be much affected by Slack’s bigger ambitions because Teams has been made a part of its Office 365 bundle and enterprise users tend to stick with its productivity solutions. On the other hand, the free tier will help new users try its tools, some of which may convert to the paid tier.

Surface

Microsoft added a $399 version of its Surface computing device to compete with Apple’s (AAPL - Free Report) 9.7-inch iPad that starts at $329. Although a barebones model with just 4GB of RAM and 64GB of storage powered by Intel’s (INTC - Free Report) not-so-powerful Pentium Gold processor, its 10-inch, 8.33 mm, back stand-inclusive sleek design makes it really light and portable at just 1.15 pounds. It runs the more secure Windows S, but can be upgraded to the standard Windows 10.

With Windows 10 Pro, the cost goes up to $449 and an 8GB RAM, 64GB storage version costs as much as $549. Additionally, you have to pay $99 to $129 more if you want a keyboard (part of a cover) and some more for the Surface Pen stylus that Microsoft says has 4,096 levels of pressure sensitivity.

Microsoft’s Surface line has been more of a showcase for its software that might inspire its hardware makers to build models that can make the most of it. But the company hasn’t had models at affordable price points, which has restricted their usage. So cheaper models is the way to go, especially considering the modern cloud-based, mobile work force.   

Azure

The just-launched Azure virtual WAN allows enterprises with a number of branches to transfer their data through Microsoft’s cloud, where they can be adequately secured and controlled through a single dashboard by the network administrator. This was accompanied by the cloud-native Azure Firewall to protect a business’s virtual network resources and the Azure Data Box service to move data into the cloud by loading it onto a shippable appliance.

The strategy to tie workloads more tightly in with the Azure ecosystem and sell more services if possible makes perfect sense.

Notepad Update

Notepad, the handy tool to dump text or code into while you’re trying to complete some other task, is getting enhancements through the Redstone 5 Windows update later this year. For text users, you can now change font sizes, zoom in, delete words before the onscreen cursor, or search for synonyms with Bing. For developers, there is now line ending support for Unix/Linux and Macintosh code.

Regulating Facial Recognition Software

Microsoft President and Chief Legal Officer Brad Smith has declared that the government should frame laws on the use of facial recognition technology, especially answering questions such as whether facial recognition requires human moderation, whether it can be used as evidence, whether there should be minimum standards for accuracy and whether individuals should have a right to know their face or identity had been collected.

As mentioned in his blog post, “We believe Congress should create a bipartisan expert commission to assess the best way to regulate the use of facial recognition technology in the United States" and "Facial recognition technology raises issues that go to the heart of fundamental human rights protections like privacy and freedom of expression" and “The only effective way to manage the use of technology by a government is for the government proactively to manage this use itself.”

Without adequate regulation, companies will continue to develop the technology and the government to use it indiscriminately, in ways that are both controversial and at times dangerous. There is particularly the danger of inaccurate identification that has in the past been weighted against minorities and people of color.

Technology companies invested in its development include Facebook , Amazon (AMZN - Free Report) , Apple, Alphabet (GOOGL - Free Report) and Microsoft, to name a few. All these companies may not support Microsoft’s stand given internal employee revolts, but in general, regulations rather than the lack of them make it easier for companies to operate.

Snowflake Deal

Microsoft has struck a deal with cloud-based data warehouse Snowflake that has standardized on Azure thus far. The agreement that has been developing over the past year as the two companies worked together to get Snowflake to operate just the same on Azure as it does on AWS, came as the enterprise-focused startup’s retail customers expressed discomfort about entrusting Amazon with their data.

Snowflake’s founder and CEO Bob Muglia said that the deal had little to do with his past relationship with Microsoft (he has spent 20 years at the company, rising through the ranks) but more to do with customer demand.

 

Recommendations

Microsoft shares carry a Zacks Rank #3 (Hold).You can instead consider the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Published in