Sierra Wireless Partners With Microsoft: Could This Help Turn the Stock Around?
Sierra Wireless (TSX:SW)(NASDAQ:SWIR) announced on Tuesday that the company would be working with Microsoft Corporation (NASDAQ:MSFT) to provide what it’s calling, “one of the industry’s first full-stack IoT solutions.”
Why does this matter?
IoT isn’t that easy for customers to grasp and by partnering with Microsoft, Sierra will utilize the Azure platform and its cloud services which will help integrate the services together and provide customers with a much simpler process for developing IoT applications.
IoT, Internet of Things, in a nutshell, allows consumers to connect hardware to the cloud. Think smartwatches, cellphones, and any sort of hardware that is linked to the Internet. It’s a broad industry and consumers are wanting more and more things to be connected to the cloud and integrate with other services. If a company like Amazon has its way, it would probably have everything in your home connected to the Internet in some way or another.
Simplification adds a lot of value
If it’s one thing that Microsoft does very well, it’s creating an easy-to-use interface for its users. Despite the challenges computer users might have with Windows, give them Linux for a day, and they’d come running back. Sierra believes partnering with Microsoft will make the IT part of its services that much easier. In the release, it states that customers would be able to ” build and deploy production-grade IoT applications in hours without cloud computing experience or specialized skills.”
That’s a pretty big claim and it’s clearly a need that the company is responding to from its users:
“The combination of Sierra Wireless’ full suite of IoT solutions and Azure IoT Central addresses a critical gap in the marketplace. We’ve consistently heard from customers about how complex it is to integrate IoT technology, which takes time and focus away from their core business. This collaboration creates a category-of-one IoT solution that will accelerate edge data into the cloud, allowing enterprises across the globe to monetize IoT”
– René Link, CMO and SVP, Corporate Strategy and Go-To-Market Operations, Sierra Wireless
What this might mean for the company
For Sierra, this could help it attract more customers and help build its growth strategy. The reason why a stock like Shopify (TSX:SHOP)(NYSE:SHOP) is so popular is that its technology is made simple and it’s easy to use by anyone. Even though Sierra has a great technology that can help a business achieve significant sales growth, it means nothing if it’s too complicated to set up and implement.
This could prove to be a big turning point for the company that in its last quarter saw sales dip by 7% year over year. It’s also struggled to stay out of the red as well. And so it’s no surprise that Sierra’s stock has fallen more than 20% in just the past year.
However, with Sierra trading near its 52-week low and being right around book value, it could be an opportune time for investors to buy low and scoop up what could prove to be a great deal.
DISCLAIMER: The author of this article does not hold any shares of the stock. This article is not a substitute for financial advice and this is not intended to persuade investors to buy or sell the stock(s) mentioned. Investors are recommended to seek professional investment advice or do their own analysis before making a stock purchase.