We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microsoft (MSFT) Inks New Collaboration With NEC: Key Takeaways
Read MoreHide Full Article
Building on more than four decades of partnership, Microsoft (MSFT - Free Report) recently inked a new multi-year collaboration with Japan-based NEC Corporation. The companies are working together to provide public sector as well as enterprise customers with enhanced digital services.
Microsoft will also help NEC in increasing the number of engineering staff at NEC that specializes in Microsoft’s technologies to facilitate seamless digital transformation for NEC customers.
NEC is utilizing Microsoft’s Azure as its cloud platform and will shift its on-premises IT environment to Azure. The company is also looking to implement Azure Virtual Desktop as well as various other Azure services for its 110,000-strong global workforce.
Apart from Azure, Microsoft 365 as well as NEC’s network and IT solutions (which includes 5G networking technology expertise) along with both companies’ Internet of Things (“IoT”) as well Artificial Intelligence (AI) offerings, will be utilized to help customers across various sectors to simplify their digital-transformation endeavours.
Microsoft and NEC intend to advance work on network innovation built on Azure platform for certain industries and enterprise domain, noted the software giant.
Accelerated Digital Transformation Bodes Well
Amid the COVID-19 crisis and subsequent lockdowns, the need for maintaining business continuity prompted enterprises to speed up digital transformation for their operations. Globally, enterprises rapidly migrated workloads to cloud and adopted several other digital technologies to enable work from home for employees and maintain business operations.
Digital transformation efforts aid in catering to changing consumer preferences by providing innovative/advanced products and services. Digital transformation also helps boost operational efficiency, enhances scalability and assists in complying with changing regulations.
Increasing implementation of advanced technologies like Big Data, robotics, AI, IoT along with accelerated 5G deployment is driving the market. Pandemic-triggered spurt in online services like shopping as well as cloud gaming and mainstream adoption of distributed/hybrid work model is fueling demand for latest digital technologies.
According to data from Mordor Intelligence, the digital transformation market was valued at $998.99 billion in 2020. The market is forecast to witness a CAGR of 18.5% between 2021 and 2026 and reach $2744.68 billion.
Microsoft is one of the well-established players in the domain. The company, which carries a Zacks Rank #3 (Hold), has captured a considerable share in the cloud market in a comparatively shorter time frame. Microsoft’s Azure trails only behind Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) in the global cloud space.
Azure’s availability in more than 60 announced regions worldwide, is also fortifying Microsoft’s competitive position in the cloud market. Azure's revenues jumped 46% at constant currency on a year-over-year basis driven by strength in consumption-based business in the last reported quarter.
Due to significant revenue potential, other cloud service providers like Oracle (ORCL - Free Report) and International Business Machines (IBM - Free Report) have amped up their efforts in the cloud arena, thereby intensifying competition.
Image: Bigstock
Microsoft (MSFT) Inks New Collaboration With NEC: Key Takeaways
Building on more than four decades of partnership, Microsoft (MSFT - Free Report) recently inked a new multi-year collaboration with Japan-based NEC Corporation. The companies are working together to provide public sector as well as enterprise customers with enhanced digital services.
Microsoft will also help NEC in increasing the number of engineering staff at NEC that specializes in Microsoft’s technologies to facilitate seamless digital transformation for NEC customers.
NEC is utilizing Microsoft’s Azure as its cloud platform and will shift its on-premises IT environment to Azure. The company is also looking to implement Azure Virtual Desktop as well as various other Azure services for its 110,000-strong global workforce.
Apart from Azure, Microsoft 365 as well as NEC’s network and IT solutions (which includes 5G networking technology expertise) along with both companies’ Internet of Things (“IoT”) as well Artificial Intelligence (AI) offerings, will be utilized to help customers across various sectors to simplify their digital-transformation endeavours.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Microsoft and NEC intend to advance work on network innovation built on Azure platform for certain industries and enterprise domain, noted the software giant.
Accelerated Digital Transformation Bodes Well
Amid the COVID-19 crisis and subsequent lockdowns, the need for maintaining business continuity prompted enterprises to speed up digital transformation for their operations. Globally, enterprises rapidly migrated workloads to cloud and adopted several other digital technologies to enable work from home for employees and maintain business operations.
Digital transformation efforts aid in catering to changing consumer preferences by providing innovative/advanced products and services. Digital transformation also helps boost operational efficiency, enhances scalability and assists in complying with changing regulations.
Increasing implementation of advanced technologies like Big Data, robotics, AI, IoT along with accelerated 5G deployment is driving the market. Pandemic-triggered spurt in online services like shopping as well as cloud gaming and mainstream adoption of distributed/hybrid work model is fueling demand for latest digital technologies.
According to data from Mordor Intelligence, the digital transformation market was valued at $998.99 billion in 2020. The market is forecast to witness a CAGR of 18.5% between 2021 and 2026 and reach $2744.68 billion.
Microsoft is one of the well-established players in the domain. The company, which carries a Zacks Rank #3 (Hold), has captured a considerable share in the cloud market in a comparatively shorter time frame. Microsoft’s Azure trails only behind Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) in the global cloud space.
Azure’s availability in more than 60 announced regions worldwide, is also fortifying Microsoft’s competitive position in the cloud market. Azure's revenues jumped 46% at constant currency on a year-over-year basis driven by strength in consumption-based business in the last reported quarter.
Due to significant revenue potential, other cloud service providers like Oracle (ORCL - Free Report) and International Business Machines (IBM - Free Report) have amped up their efforts in the cloud arena, thereby intensifying competition.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.