Cloud infrastructure and software

Putnam Investments, 06/25/20


Putting durable growth themes to work
A thematic approach is a distinctive feature of Putnam Growth Opportunities Fund. The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multi-year time horizon.

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THEME: Cloud infrastructure and software

Businesses are increasingly shifting their information technology systems from on-premise databases to cloud storage. The benefits are widely recognized and include reduced costs, enhanced data security, better collaboration, and greater flexibility for employees accessing company documents and data.

The demand for cloud computing is on the rise as more businesses find it essential to transition their on-site data systems.

STOCK: Microsoft (MSFT)

While Amazon was a clear first mover in the cloud space, Microsoft is proving to be a fast follower with Azure.

  • Microsoft is transitioning existing customers to Azure to help close the market-share gap.
  • We believe Azure can achieve an annual growth rate in of more than 30% by 2023 — a figure well ahead of expectations and not yet priced into the stock.

Microsoft holdings: 10.53% (as of 5/31/2020) | See complete holdings

microsoft's revenue stream may become more predictable


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