- Enterprise user IT conference, Ignite, confirmed Microsoft's solid fundamentals.
- Separately, Microsoft and Bank of America Merrill Lynch announced a collaboration on innovative blockchain tech.
- I reiterate a Buy rating with a $80 bull case price target.
Sessions at Ignite around migration to Office365, new Office365 features, and other topics were well attended. I expect to continue to hear about the success of Office365. Although I don’t expect to see significant uplift to revenue from Office365 migrations, as most customers are being brought over at economics which are in-line with current pricing on traditional Office. The E5 SKU represents a potential driver of pricing uplift.
Interest in the on-premise Windows Server product was high, but mostly in tactical feature and function enhancements. I don’t expect a surge in licensing for Windows Server 2016 as it is usually end of life, not new releases which drive purchasing. I note that of the Azure-related sessions, the best attendance I saw was around sessions on Azure Stack, which is Microsoft’s private cloud offering slated for 2017...