Microsoft Corporation (NASDAQ:MSFT) has been a pioneer among technology giants in offering Blockchain as a Service (BaaS) on its cloud platform, Azure

Microsoft Corporation (NASDAQ:MSFT) has been a pioneer among technology giants in offering Blockchain as a Service (BaaS) on its cloud platform, Azure

Microsoft Corporation (NASDAQ:MSFT) has been a pioneer among technology giants in offering Blockchain as a Service (BaaS) on its cloud platform, Azure

Microsoft Corporation (MSFT) has been a pioneer among technology giants in offering Blockchain as a Service (BaaS) on its cloud platform, Azure. The company embarked on its blockchain journey in November 2015 with its announcement to support Ethereum on Microsoft Azure. Fast forward to today, Azure supports almost all the major blockchain platforms and can deploy a wide variety of network configurations.

Since its first move towards toward blockchain, Microsoft has made meaningful progress by engaging with hundreds of enterprises across sectors and industries. Here’s a look at its major partnerships over the past one year and why such collaborations are important for its overall business.

With the aim to improve visibility and streamline the costly and time-consuming processes in entertainment rights and royalties, Microsoft and Ernst & Young (E&Y) launched a blockchain solution for content rights and royalty management. The underlying network is built using the Quorum blockchain protocol and Microsoft’s Azure cloud infrastructure and blockchain technologies.

To bring digital ledger interoperability to Nasdaq Financial Framework (NFF), Nasdaq (NDAQ) and announced the integration of Nasdaq Financial Framework (NFF) with Microsoft Azure blockchain. The collaboration will work on building a blockchain powered multi-ledger strategy. Nasdaq sees immediate opportunity for blockchain “to manage the delivery, payment, and settlement of transactions that may reside on multiple blockchains with different payment mechanisms.” Worldwide, many prominent stock exchanges are looking at ways to leverage the blockchain technology to fundamentally overhaul traditional mechanisms.

Continuing with its partnerships to help enterprises adopt blockchain technology, Microsoft partnered with Tata Consultancy Services (TCS). Together, Microsoft, R3 and TCS aim to drive scaled adoption of blockchain across industries. TCS has already identified and is developing five blockchain platforms that include, digital identity, track and trace, assets in common, asset monetization, and tokenization.

One of the most recent collaborations of Microsoft is with Cargo Community Network (CCN) to launch the world’s first blockchain air cargo billing, costing and reconciliation system. Leveraging Microsoft Azure blockchain technology, CCN is set to deliver a single immutable source of information for air cargo shipment rates, shipment details and billing processes—all via blockchain with real-time updates provided by stakeholders. The use of blockchain will streamline the entire supply chain while enhancing operational efficiency for airlines, cargo agents and freight forwarders.

Despite the potential that blockchain offers to varied businesses, there are multiple obstacles (such as scalability or governance) to overcome before enterprises can fully adopt the technology. Microsoft actively identifies existing technology gaps and helps organizations build durable enterprise-grade blockchain applications. In May last year, Microsoft introduced Azure Blockchain Workbench to public preview and dubbed it as “the fastest way to get started with blockchain on Azure.”

Workbench makes it easy to integrate blockchain workflows with existing systems by using Microsoft Flow and Logic Apps. In November, Microsoft released the initial version of the Azure blockchain development kit which is built on Microsoft’s serverless technologies and seamlessly integrates blockchain with the best of Microsoft and third-party SaaS.

The worldwide spending on blockchain solutions is rising. According to IDC estimates worldwide spending on blockchain solutions is forecasted around $2.9 billion in 2019, an increase of 88.7% from the $1.5 billion spent in 2018. It is expected to reach $12.4 billion in 2022, growing at a CAGR of 76.0% (2018-2022).

While a survey by Juniper shows the enthusiasm among enterprises to adopt blockchain-driven solutions. As per the survey, 65% of companies with more than 10,000 employees were considering or actively engaging in blockchain deployment with almost 25% of companies considering deploying blockchain have moved beyond the Proof of Concept stage. The survey ranks Microsoft as the second most-preferred company to go to for blockchain deployment.

The rising interest among enterprises and increased spending on blockchain solutions presents a huge opportunity for companies such as Microsoft which are focused to emerge as a preferred cloud platform in the “mobile-first, cloud-first, data-powered world.” 

Microsoft has the second largest market share in the cloud infrastructure market. During Q2 2019, the intelligent cloud segment recorded a revenue of $9.6 billion, an increase of 20% year-on-year. The revenue from cloud constitutes almost 30% of the company’s revenue. Overall, Microsoft is powering the blockchain trend by collaborating with enterprise clients and helping them adopt blockchain solutions using BaaS which supports its cloud-first vision.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 111.80.

The projected upper bound is: 123.42.

The projected lower bound is: 115.14.

The projected closing price is: 119.28.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend (which appears to be the case with MICROSOFT CP) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 67.5847. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 66.65. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.

Rex Takasugi – TD Profile

MICROSOFT CP closed up 1.080 at 119.020. Volume was 33% below average (neutral) and Bollinger Bands were 5% wider than normal.

Open High Low Close Volume___
118.950 119.108 118.100 119.020 22,789,104

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 117.87 110.80 107.76
Volatility: 23 24 33
Volume: 27,160,284 27,941,242 31,369,460

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

MICROSOFT CP is currently 10.5% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into MSFT.O (mildly bullish). Our trend forecasting oscillators are currently bullish on MSFT.O and have had this outlook for the last 51 periods.

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