Microsoft (MSFT), GE CEOs Discuss Partnership With CNBC's Jon Fortt
NEW YORK (TheStreet) -- Microsoft (MSFT) - Get Report CEO Satya Nadella and General Electric (GE) CEO Jeffrey Immelt sat down with CNBC's Jon Fortt at Toronto's 2016 Worldwide Partner Conferenceto discuss their cloud deal on "Squawk on the Street" Monday.
Per the partnership, GE's Predix industrial operating system will now be available on Microsoft's Azure cloud. Predix is a platform for building applications that connects to industrial assets and is already provided on Amazon's (AMZN) and Oracle's (ORCL) clouds.
"How do you make this work for Microsoft and turn it into a deal that boosts your other cloud businesses as well?" Fortt asked Nadella.
Microsoft is a "platform company at the core," he replied, which means it "creates opportunities for other software and platform companies."
"The combination of Azure and Predix in fact creates a huge opportunity for all the partners at this conference to be able to build the Internet of Things (IoT) and industrial Internet solutions. As part of those solutions, they will wire even things like Microsoft Dynamics, Office 365 and all the other partner solutions," Nadella explained.
"I think for us, having a relationship with Microsoft does two things really: One is it allows us to go faster, so in the industrial world this is going to be done customer by customer, country by country. I think the other thing is there's a bridge between enterprise and industrial that every CIO is going to have to walk, so they're going to have to be comfortable more with operations technology," Immelt noted.
Microsoft stock is advancing by 0.71% to $52.67 and shares of GE are rising by 0.9% to $32.49 late this morning.
Separately, TheStreet Ratings rated Microsoft as a "buy" with a score of B+.
This is driven by a few notable strengths, which can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MSFT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.