"At its large scale, MSFT needs sizeable new revenue opportunities to be able to drive future growth. We think the security space is such an option and that investors don’t fully appreciate MSFT’s progress here. Historically, security has been a fragmented space with a surplus of different point solutions. Roll-up approaches to create industry giants (Symantec) have not worked. However, the cloud is changing the dynamic as it forces a centralized approach. MSFT has built an expansive security offering, evident by the strong showings in our CIO survey. Its security portfolio represents, in our view, an additional $30bn sales opportunity and is another factor in our confidence for the name," wrote Barclays analysts.
Jim Cramer weighs in on Microsoft.