Morgan Stanley Predict Microsoft Will See Uptick Following Pandemic
Morgan Stanley published an analyst note for investors on Wednesday, in which it listed 12 estimated technology trends after the pandemic. Microsoft stands to benefit from six of the trends, according to Business Insider.
In the note, Microsoft said that it expects working from home to be “not just a passing phase” but a new norm. And companies that develop videoconferencing platforms will gain from this trend.
Before the coronavirus outbreak, 28 percent of respondents to a Morgan Stanley survey said they used Microsoft’s Teams or Skype for videoconferencing, and 27 percent used Zoom. But during the pandemic, Zoom became the dominant platform for the video conference market. But Microsoft video platforms will also see its market share increase going forward, as Morgan Stanley predicts 42 percent increase in spending on the entire video conferencing industry.
The report also predicts a rapid market shift to the public cloud triggered by the pandemic. Because the public cloud is going to be “key for business survival as companies focus on improving connectivity during COVID-19,” Microsoft will get the largest share of spending for its Azure.
Microsoft Azure has surpassed Amazon Web Services for the first time as the preferred public cloud system in a Morgan Stanley survey of technology executives this year. This survey is a strong indicator for where companies intend to spend their IT budgets.
As of now, Amazon Web Services still has the largest market share. According to Gartner’s data, which has been collected since the end of 2018, AWS obtained 47.8 percent of market share and Microsoft with 15.5 percent.
In addition, Morgan Stanley suggested Microsoft’s investment in low-code applications, data analytics, healthcare technology and augmented reality technology will pay off in the post-pandemic market.
Microsoft’s Power Platform suite of applications will stand out in helping organizations digitizing their businesses with little or no coding. Microsoft’s first industry-specific cloud for the healthcare industry will give it a leading position in the healthcare tech industry.
Augmented reality is another trend that Morgan Stanley estimates to prevail after the pandemic, and the report acknowledged Microsoft’s investment in this area.
“COVID-19 should help expand AR/VR use cases because the need to interact at a distance has never been so mandatory,” the analysts wrote, “Ushering in a whole new normal for how people will approach in-person interactions in the future.”