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Microsoft (MSFT) Debuts Cloud-based Windows 365 Service

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Microsoft (MSFT - Free Report) rolled out Windows 365 computing service that puts its Windows operating system on to the cloud. Windows 365 will be available from Aug 2, 2021, to all business users.

Windows 365 features Cloud PC which is a new hybrid personal computing category. Cloud PC is designed to help businesses deliver a comprehensive and customized PC operating system (Windows 10 as well as the upcoming Windows 11) experience on any device via cloud platform.

Enterprises can opt for Cloud PC service by choosing either of the operating systems (once Windows 11 is rolled out) at a per-user per-month pricing subscription.

With the help of Windows 365, users can get access to entire Windows experience that includes tools, apps, data and settings on their preferred devices. Also, Cloud PC login enables users to carry on their work across various devices.     

For rendering IT administration’s work easy, Windows 365 is optimized for the Microsoft Endpoint Manager to allow IT to easily deploy and manage organization’s Cloud PCs.

Windows 365 also helps organizations to effectively provide enhanced processing and computing power for personnel engaged in special fields like creative, analytics, engineering and scientific roles, added Microsoft.  

Considering heightened cybersecurity concerns, Windows 365 utilizes Zero Trust security framework. The service stores data on the cloud rather than any personal device thereby enhancing security, noted the software giant

Will Hybrid Work Model Benefit Windows 365?

Distributed/hybrid work model is gaining mainstream adoption as employees are supporting such workspace set up.

According to a new survey by McKinsey & Company, nine out of 10 business enterprises will allow both on site and remote working set ups as hybrid model raises productivity. The survey was conducted by polling 100 executives from various sectors across the globe.

Though it is too early to say how the hybrid work model will evolve in the coming days, it is certain that such work culture is here to stay.

Windows 365 is expected to benefit from ongoing changes in the workspace environment. The service eliminates the need to provide hardware for new employees as well as seasonal workers and thus makes onboarding process faster.  

Cloud-based Windows 365 offers flexibility to enterprises to enable scattered workforce to carry on with work securely from anywhere and on any devices.

Microsoft commands a dominant position in the PC market, with its operating systems being used in most PCs across the globe. The company has a large Microsoft 365 installed user base.

Successive editions of Windows operating system have contributed to strong revenue and cash flow generation for Microsoft. In third-quarter fiscal 2021 conference call, Microsoft noted that Windows 10 monthly active devices stood around 1.3 billion.

Zacks Rank & Stocks to Consider

At present, Microsoft carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector worth considering are Jabil (JBL - Free Report) , Intuit (INTU - Free Report) and Zoom Video (ZM - Free Report) . All stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Jabil, Intuit and Zoom Video is currently pegged at 12%, 14.7% and 15.6%, respectively.