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Microsoft wins its biggest cloud computing client

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04/12/2012 | 11:27pm CEST

Microsoft announced its biggest-ever customer for cloud computing - software that it hosts on behalf of clients and delivers over the Internet - after winning a contract to provide free services to a major Indian education body.

Microsoft, which was built on the sale of expensive software that is installed on individual computers, has been forced by competition from Google and others to branch out into the fast-growing world of cloud computing.

The U.S. software giant said on Thursday it would provide its Live@edu communication and collaboration software to more than 7 million students and half a million teachers through a deal with the All India Council for Technical Education.

The service, which Microsoft is providing for free as part of its education initiative, includes email, Office Web applications, instant messaging and storage.

For users, cloud computing is inexpensive and simple, because it removes the need to spend time and money on installing software and managing servers.

Large government departments are prime targets for vendors such as Microsoft and Google.

Last June, Microsoft unveiled a revamped online version of its hugely profitable Office software suite.

(Reporting by Georgina Prodhan, editing by Jane Baird)

Stocks treated in this article : Google Inc, Microsoft Corporation
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Financials ($)
Sales 2016 88 490 M
EBIT 2016 29 460 M
Net income 2016 24 492 M
Finance 2016 49 249 M
Yield 2016 -
P/E ratio 2016 29,15
P/E ratio 2017 24,59
EV / Sales 2016 5,58x
EV / Sales 2017 4,71x
Capitalization 543 411 M
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Google Inc Technical Analysis Chart | GOOGL | US38259P5089 | 4-Traders
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Mean consensus OUTPERFORM
Number of Analysts 48
Average target price 939 $
Spread / Average Target 17%
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Lawrence E. Page Chief Executive Officer & Director
Sergey Mikhaylovich Brin President & Director
Eric E. Schmidt Executive Chairman
Ruth Porat Chief Financial Officer & Senior Vice President
Louis John Doerr Independent Director
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