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GOOGLE INC (GOOGL)

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Microsoft wins its biggest cloud computing client

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04/12/2012 | 11:27pm CET

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 2017 105 870 M
EBIT 2017 28 496 M
Net income 2017 23 529 M
Finance 2017 79 571 M
Yield 2017 -
P/E ratio 2017 25,42
P/E ratio 2018 21,67
EV / Sales 2017 4,72x
EV / Sales 2018 3,85x
Capitalization 579 542 M
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Average target price 989 $
Spread / Average Target 17%
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NameTitle
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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