Latest news with #cloud
Forbes
8 hours ago
- Business
- Forbes
Cloud Cost Optimization Starts With Executive Ownership
Andres Zunino, cofounder of ZirconTech. An AWS partner delivering optimized and secure cloud, web and blockchain solutions. Cloud spending is still rising faster than revenue for many companies, and leadership can no longer claim that the bill is a technical mystery. The 2025 State of the Cloud survey shows that 84% of organizations now place cost control at the top of their agenda, even though average spend already runs 17% above budget. Analysts at IDC calculate that roughly a quarter of public-cloud dollars buy no real value, confirming that software tools alone cannot close the gap between what companies pay and the benefits they receive. Rethinking Cost Reviews As Strategic Discipline Many executives still schedule cost reviews as back-office chores that surface long after engineers have launched new workloads. That habit quietly funds waste instead of innovation. True optimization begins when senior leaders treat every cloud dollar as capital that must earn a return, demand clear attribution between spend and the customers or products that drive it, and weave cost awareness into day-to-day engineering practice rather than relying on frantic year-end audits. Speed Hides Waste Speed is the cloud's main attraction, yet the same velocity often hides waste. Development teams spin up new regions, serverless functions and artificial-intelligence services whenever opportunity appears. The AWS Well-Architected Cost Optimization Pillar warns that idle resources and oversized capacity remain the largest culprits, even in mature environments. Visibility degrades just as quickly. According to the 2024 State of Cloud Cost Intelligence report, only 30% of companies can trace even half of their bill to the workloads that produced it. Finance teams that lack line-of-sight data must resort to blunt budget cuts, which sap morale and often miss the true sources of waste. Culture, Not Gadgets, Drive Visibility Culture, not gadgets, fixes that blind spot. Fewer than 15% of organizations operate policy and governance at full-run maturity, meaning most still rely on sporadic manual reviews, notes the FinOps Foundation. Someone in the C-suite—typically the chief financial officer or chief technology officer—must own cloud economics end to end, so product, finance and engineering can settle trade-offs in real time instead of escalating every decision. Clear ownership also makes it possible to reward teams for improving unit cost, not just for releasing features. Codify Cost Controls Into Delivery Pipelines Codified policy turns good intentions into measurable savings. Embedding FinOps rules directly in CI/CD pipelines can block non-compliant resources before they reach production—a practice that could free nearly $120 billion each year if adopted broadly, according to a McKinsey analysis. Governance written as code behaves like an automated unit test developers cannot bypass, keeping new launches within budget while preserving delivery speed. Evolving Governance With The Platform Governance must evolve as fast as the cloud platform. Microsoft's Azure Cloud Adoption Framework advises teams to review cost policies whenever new services, regions or pricing models appear. On Amazon Web Services, reference implementations show how AWS Config conformance packs can scan hundreds of accounts for mis-tagged or oversized assets and remediate violations automatically. Automation turns best-practice slide decks into enforceable reality, giving engineering rapid feedback while providing finance the transparency it needs. Turning Waste Into Strategic Capital The financial upside is enormous. IDC forecasts that global public-cloud spending will reach $1.35 trillion in 2027. Shaving a single percentage point off unit cost would redirect more than $10 billion each year toward faster feature delivery, new geographic launches, or richer customer experiences. Firms that track spend with the same rigor they apply to reliability and security compound those gains month after month and create a durable advantage. Cloud computing remains a potent lever for growth, yet its flexibility becomes a liability when financial discipline lags behind engineering momentum. Leaders who assign clear ownership, insist on outcome-based cost attribution and weave automated guardrails into the delivery pipeline will convert wasted spend into strategic capital. In a market racing toward trillion-dollar scale, disciplined FinOps is not housekeeping—it is the edge that separates companies that merely pay for the cloud from those that profit from it. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Globe and Mail
a day ago
- Business
- Globe and Mail
Does Azure AI Growth Make Microsoft Stock a Buy Ahead of Q4 Earnings?
Microsoft 's MSFT fourth-quarter fiscal 2025 results, scheduled to be reported on July 30, are likely to be driven by steady growth in its cloud platform, Azure. (Read Now: Should Investors Buy Microsoft Stock Ahead of Q4 Earnings Release?) Microsoft positioned itself for another strong quarterly performance as the company continued to capitalize on the AI revolution throughout the fourth quarter of fiscal 2025 despite facing competitive pressure in the AI space from tech giants, including Alphabet 's GOOGL Google, Nvidia NVDA and Amazon AMZN. The technology giant's strategic investments in AI infrastructure and expanding partner ecosystem are expected to have created multiple tailwinds that are likely to boost results across key business segments, particularly in the high-growth Intelligent Cloud division. The Intelligent Cloud segment is expected to have remained Microsoft's primary growth engine, with revenue projections between $28.75 billion and $29.05 billion for the fourth quarter. Our model estimate for this segment is pegged at $28.89 billion, indicating growth of approximately 21% from the year-ago quarter. Microsoft Corporation Price and EPS Surprise Azure AI Services to Drive Outstanding Performance Azure is expected to have continued as the standout performer, with revenue growth projected between 34% and 35% in constant currency, driven predominantly by sustained momentum in AI services adoption. Microsoft's AI capacity constraints, which management expects to have extended beyond June, represent a high-quality problem reflecting extraordinary demand for Azure AI services. The company brought datacenter capacity online faster than expected in the third quarter, with AI contributing 16 points of Azure growth compared to 13 points in the prior quarter. This acceleration trajectory positioned Microsoft advantageously entering the fourth quarter, as the company continued expanding its global infrastructure footprint to meet surging enterprise AI adoption. Management's previous quarter commentary highlighted that Azure's outperformance came primarily from non-AI services, demonstrating the platform's broad-based strength beyond AI workloads. This diversified growth foundation is expected to have provided additional confidence for fourth-quarter performance, as both traditional cloud migrations and cutting-edge AI implementations contributed to revenue expansion. Microsoft Build 2025 Catalyzes Enterprise AI Adoption in Q4 Microsoft Build 2025 in May unveiled transformative capabilities that are likely to have accelerated customer commitments during the quarter, including Microsoft 365 Copilot Tuning for enterprise-specific model training, multi-agent orchestration systems, and Azure AI Foundry Agent Service becoming generally available. These announcements represented significant competitive advantages that strengthened Microsoft's AI platform leadership. The introduction of agentic AI capabilities, including the Agent Store, Microsoft 365 Agents SDK, and enhanced Copilot Studio features, expanded the total addressable market for Microsoft's AI services. Enterprise customers gained access to sophisticated tools for building custom agents, which translated into higher-value contracts and deeper platform integration throughout the fourth quarter. Copilot Momentum Accelerates Productivity Growth in Q4 Microsoft 365 Copilot is expected to have continued gaining traction in the to-be-reported quarter. Management guided for M365 commercial cloud revenue growth of approximately 14% in constant currency for the fourth quarter, with continued ARPU growth through E5 and M365 Copilot driving performance. The fourth quarter benefited from extended Microsoft 365 Copilot promotions offering 15% discounts through June 30, while new capabilities like Copilot Notebooks, enhanced search functionality, and reasoning agents provided compelling upgrade paths for existing customers. These developments strengthened Microsoft's competitive moat in productivity software while expanding revenue per user. Strong Commercial Fundamentals Support Growth Microsoft entered the fourth quarter with commercial remaining performance obligation of $315 billion, up 34% year over year, providing substantial revenue visibility. The company's annuity mix reached 98%, demonstrating exceptional business model quality and predictable cash flows. This contracted backlog represented unprecedented customer commitment levels, reducing execution risk for fourth-quarter results. Management guided for solid commercial bookings growth in the fourth quarter despite significant prior-year comparisons, supported by strong core annuity sales execution and continued long-term platform commitments. The combination of existing backlog conversion and new contract signings created multiple revenue drivers for the quarter. Investment Thesis Strengthened Microsoft's guided fourth-quarter capital expenditures increase on a sequential basis, reflecting management's confidence in sustained demand signals. Rather than constraining growth, capacity limitations validated the company's strategic AI investments and market-leading position. The guided revenue range of $73.15-$74.25 billion, with the midpoint significantly exceeding consensus estimates, demonstrates management's strong confidence in underlying execution capabilities. Microsoft's fourth-quarter fiscal 2025 results are likely to exceed expectations across key metrics, driven by Azure AI acceleration, expanding Copilot adoption, and strong enterprise commitment levels. These fundamental strengths, combined with the company's rapidly expanding AI ecosystem and deepening customer relationships, make the stock increasingly compelling for investors seeking sustained exposure to artificial intelligence transformation. MSFT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report
Yahoo
a day ago
- Business
- Yahoo
Is ServiceNow Stock Headed for a Significant Rally? What Investors Should Know.
ServiceNow (NOW) continues to deliver impressive growth. The provider of cloud-based solutions for digitizing and managing enterprise workflows is witnessing strong demand for its artificial intelligence (AI) and customer relationship management (CRM) offerings, which is translating into a growing customer base with larger annual contract values (ACVs). Yet, despite these strong fundamentals, ServiceNow stock has underperformed broader market indexes this year and remains in the red. This disconnect presents a buying opportunity. The market appears to be overlooking the company's solid long-term prospects. For instance, its customer growth remains strong, retention rates are high, and current remaining performance obligations (cRPO) — a key metric for future revenue growth — are on the rise. More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. ServiceNow: AI Demand to Push Stock Higher Most notably, demand for ServiceNow's AI-powered platform continues to accelerate, reflecting broader enterprise adoption trends in intelligent workflow automation. Moreover, internally, AI efficiencies are helping the company drive margin expansion. The strong demand is translating into solid financial performance. In Q2 2025, its subscription revenue rose 21.5% year-over-year to $3.113 billion, while total RPO grew 25.5% year-over-year to nearly $24 billion. The cRPO reached $10.92 billion, up 21.5% in constant currency. The company also achieved a 98% renewal rate, reflecting the significance of its platform for digital transformation. By the end of Q2, ServiceNow had 528 customers generating over $5 million in ACV, and the number of clients contributing $20 million or more jumped by over 30% year-over-year. The quarter also saw the company close 89 net new ACV deals exceeding $1 million, including 11 deals topping $5 million. Notably, every one of its top 20 deals included five or more products, showcasing growing adoption of multiple products, which will drive average revenue per customer and customer retention. ServiceNow's CRM business is another area that's rapidly gaining traction. The company's acquisition of is already paying off, especially in its Configure, Price, Quote (CPQ) capabilities, with nine deals closed in June. The company's AI-driven offerings are performing exceptionally well. Products like IT Asset Management (ITAM) Now Assist have seen net new ACV surge nearly sixfold quarter-over-quarter, with average deal sizes more than tripling. Other modules, such as Security Operations (SecOps) and risk, are also doubling in ACV growth, and flagship tools like IT Service Management (ITSM) Plus, Customer Service Management (CSM) Plus, and HR Service Delivery (HRSD) Plus are posting exceptional year-over-year gains in value. The launch of Agentic Workforce Management and the rapid development of new AI infrastructure, such as AI Control Tower and a no-code Agent Studio, position it well for future growth. These new offerings are already experiencing strong demand and generating solid ACV. Financially, ServiceNow is translating this growth into operational efficiency. Margin expansion is being driven not only by revenue growth, but also by AI-driven cost management. In short, the solid adoption of its platform and strong pipeline positions it well to deliver $15 billion-plus subscription revenue in 2026, with $1 billion in Now Assist ACV. What Analysts Recommend for ServiceNow Stock While the stock hasn't yet caught up to these underlying fundamentals, Wall Street analysts are bullish about its prospects and maintain a 'Strong Buy' consensus rating. This suggests that the current market undervaluation may be temporary, and a strong rally could be on the horizon as AI tailwinds continue to drive both top-line growth and operational efficiency. How High Can ServiceNow Stock Go? ServiceNow is well-positioned to benefit from accelerating demand for its AI platform, strong customer retention, and expanding contract values. Despite recent underperformance in the stock, the company's fundamentals remain solid. With analysts maintaining a positive outlook and the broader AI and enterprise automation trends playing in its favor, ServiceNow appears well-positioned for a significant rally. Analysts have an average price target of $1,114.26, implying about 13% upside potential. Moreover, the highest price target for NOW stock is $1,300, indicating 31% upside potential over the next 12 months. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Microsoft's (MSFT) Cloud and AI Strategy Could Deliver Big Q4 Upside
Microsoft Corporation (NASDAQ:MSFT) is one of the On July 23, UBS analyst Karl Keirstead adjusted the price target for the stock from $500 to $600 while maintaining a 'Buy' recommendation. The rating affirmation comes ahead of Microsoft's upcoming fiscal fourth-quarter report due next week. According to the firm, there are two factors driving company shares on the earnings reports, namely Azure growth and earnings revisions, which look positive. Microsoft enterprise customers seem satisfied as opposed to earlier in the year. It believes Azure cloud service growth has the potential to exceed the high end of Microsoft's guidance range of 35%. Meanwhile, recent headcount reductions may positively impact the fiscal year 2026 margin outlook. A computer engineer discussing the company's Unified Cloud Software Solutions with a colleague. The firm believes that investors expect around constant currency Azure growth of 36% for the June quarter, with guidance pointing to a slowdown to 34% in the September quarter. The growth target seems achievable due to improving sentiment from enterprise customers and partners as compared to the February-April period. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Barclays Reduces PT on Jamf Holding Corp. (JAMF); Maintains ‘Equal Weight' Rating
Jamf Holding Corp. (NASDAQ:JAMF), having a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, ranks among the . A close-up of a computer monitor showing a complex web of cloud-based technology. On July 21, 2025, Barclays decreased its price target on Jamf Holding Corp. (NASDAQ:JAMF) from $15 to $10, maintaining an 'Equal Weight' rating. However, the analyst expresses optimism about how software companies are positioned for the upcoming Q2 earnings. This optimism is driven by market feedback and sales data, which demonstrated improved performance in May and June following a weak April. As such, the analyst expects strong Q2 results for Jamf Holding Corp. (NASDAQ:JAMF), with potential for upward guidance revisions. Meanwhile, on July 17, 2025, JPMorgan also decreased its price target on Jamf Holding Corp. (NASDAQ:JAMF) from $15 to $12, maintaining an 'Overweight' rating. Justifying the bullish rating, the analyst spoke about strong cloud spending trends that are expected to drive upside in the second half of 2025. However, it cited concerns about increased exposure to macro-sensitive customer segments, justifying the downward revision of its price target. Thus, analysts see improving momentum, yet advise caution for investors amid market uncertainties that may impact customer base and future performance of Jamf Holding Corp. (NASDAQ:JAMF). Serving Apple devices, Jamf Holding Corp. (NASDAQ:JAMF) delivers cloud-based management and security solutions, automating the device lifecycle, identity and access management, and endpoint protection within the IT landscape. It offers a cloud-hosted Jamf Pro MDM server, enabling scalable, globally accessible management of Apple devices. It is included in our list of the best cloud stocks. While we acknowledge the potential of JAMF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and 11 Best Mineral Stocks to Buy According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
