on 11 January 22
By Gabrielle E. Osirim
Instantaneous access, increased innovation, automatic operation, and self-service are just a few of the reasons why the cloud industry is seeing a huge spike in demand. The cloud, for those who aren’t already well versed on its capabilities and overall purpose, is a network of servers that allows users to access data via the internet as opposed to through a computer hard drive. The Cloud offers its users unlimited accessibility to their stored data providing them with a greater degree of flexibility. With a seemingly immediate connection and rapid retrieval it’s easy to comprehend why the market for Cloud Computing is growing exponentially; experts predict $105 billion in economic growth within the industry by 2020. Cloud Computing is expected to be one of the most massive investment opportunities right now and will remain so for years to come. According to the 2017 BDO Technology Outlook Survey, 74% of Tech Chief Financial Officers say that relative to other forms of technology (VR, Blockchain, etc.), Cloud Computing will have the most quantifiable impact on businesses in 2017. Windstream’s most recent acquisition of the leading cloud-based UC provider (to small-midsized companies), Broadview, is expected to reign in $30 million in annual operating synergies within the next two years. This acquisition was carried out by Windstream in an effort to reduce unnecessary costs and increase overall revenue. Windstream’s decision to purchase this company was not only resourceful but perceptive of the current climate, one that’s forecast grows increasingly cloudy. And so I ask, what does this projection tell us about the future of Cloud Computing as it relates to shareholders and the economy?
Currently, Amazon has the top Cloud Computing stock in the market. They are the leading Cloud Computing service to date, not only did they help to develop and design the earliest concepts of Cloud Computing but according to The Motley Fool they’re currently on their way to taking at least 11% of all global Cloud Computing revenue this year. As their services evolve so does their revenue, which increased by 70% in 2015 and 55% in 2016. Although buying into the company isn’t exclusive to Cloud Computing, their existence as an online retailer, according to Business Insider, accounts for 43% of all US online retail sales (so it’s a win-win).
Not only is investing in Cloud Computing immensely profitable, but the possibilities for growth and expansion within the industry are immeasurable. The cost effectiveness of Cloud Computing is one of its greatest benefits, and SMBs and enterprises alike are cutting costs with VoIP office phone systems and SaaS solutions. The common network between users and their providers aids in the elimination of redundant costs. The free space, common grid, and varying cost (based on level of service) present a seemingly unlimited flexibility of Cloud Computing and its services. Another bonus that promises steady growth for the SaaS market in upcoming years—and continued revenue for investors—is that the IT network is the responsibility of the providers meaning external costs that the user would normally have to pay for IT maintenance are no longer existent. Overall, the consolidation of industries has only led to higher year round returns and has made for an even better investment. For a comprehensive list on the 7 best performing Cloud Computing companies to watch in 2017, click here.
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