Microsoft Corporation (NASDAQ:MSFT) Could Win Big If Cloudyn Deal Goes Through


Microsoft Corporation (NASDAQ:MSFT) has not yet signed a deal with Cloudyn but probability is high it might do soon. Reports from different sources have indicated that there are prospects that Microsoft will buy Cloudyn, the cloud monitoring firm.

It is estimated that upon the signing of the deal, Microsoft will end up parting with $50M- $70M. The reason behind buying Cloudyn is that cloud services are crucial to almost all the loyal customers attached to Microsoft. In that case, Microsoft will stand a better chance of serving its customers efficiently with the acquisition of larger cloud data monitoring software.

It is expected that the processes of buying Cloudyn will be an uphill task for Microsoft because of the open fact that Cloudyn has a huge number of investors. That number means that there will be a long period of consultation between the stakeholders and buyers. If Cloudyn will manage to convince all its shareholders and partners, then Microsoft will be in a better position to seal the deal with Cloudyn.

Advantages Of Acquiring Cloudyn

Considering that Cloudyn has been facing the wrath of other competitors such as RightScale and CloudHealth technologies, analysts say that with Microsoft buying Cloudyn, it will be possible to attain a better level of competition that will enhance a positive competitive advantage. This is because with the acquisition of Cloudyn services and operations, it will be possible to enjoy strong computing power which has recently been complemented with cloud storage techniques.

If the deal happens, then Microsoft will be in a position to increase its computing utilities by monitoring how its services are used while optimizing them and also increasing the capacity if need be.

Shortcomings Associated

The move of buying Cloudyn, however, might be detrimental to Cloudyn itself if the deal happens. This is because it will lose its huge clientele base to Microsoft, a development which will lead to the extinction of Cloudyn as a separate brand.

Microsoft closed yesterday’s trading at $65.50, after registering an increase of $0.46 or 0.71% per share.

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