Two deals for Microsoft boost cloud revenues

October 28, 2019

Microsoft continues to gather momentum from its shift to cloud computing in 2014.

On Friday, the Pentagon awarded the world’s biggest software company a US $10 billion cloud computing contract, ahead of Amazon which was expected to win the bid. It’s a big contract for Microsoft as it battles Amazon for cloud dominance.

The 10-year project, known as Joint Enterprise Defense Infrastructure, or JEDI, pitted Microsoft, Amazon, Oracle and IBM against one another. JEDI is a program to make the U.S. defense department more agile by replacing its aging computer networks with a single cloud system.

Under the contract, Microsoft will provide artificial intelligence-based analysis and host classified military secrets among other services. The JEDI system will store and process classified data, allowing the U.S. military to use artificial intelligence to speed up its planning and fighting capabilities.

In related news last week, Humana Inc. one of the largest health insurers in the U.S. announced a seven-year partnership with Microsoft for cloud services. The hope is to simplify the online interaction between doctors, patients and the health insurer.

The Louisville, Kentucky-based Humana will use Microsoft’s Azure cloud computing, artificial intelligence and data analytics platform.

Microsoft is a component of two Harvest ETFs.

It is a top holding of the Harvest Portfolio Group’s Harvest Tech Achievers Growth & Income ETF. The ETF (TSX:HTA, HTA.U) is an actively managed portfolio of 20 global technology leaders with an average market capitalization off CAD $376 billion as of Sept. 30, 2019.   The ETF’s portfolio has an average yield of 1.18% and a current distribution yield of 6.78%.

Microsoft is also a core holding of the Harvest Brand Leaders Plus Income ETF (TSX: HBF, HBF.U).

As of Sept. 30, 2019, HBF held 20 global brand leaders who are the dividend elite, with an average dividend yield of 2.00%. The ETF’s average market capitalization was CAD $412 billion and has a current distribution yield of 6.96%.

For more on  Harvest ETF’s click here.

The views and/or opinions expressed in the blog are of a general nature and are for informational purposes only. Blog contents should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Investors should consult their investment advisor before making any investment decision.

You may also like…


For Information Purposes Only. Commissions, management fees and expenses all may be associated with investing in HARVEST Exchange Traded Funds (managed by Harvest Portfolios Group Inc.) Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or  “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.

Sign up to receive our monthly updates