Cloud Computing: Will It Provoke Industry And ETFs? | ETF Trends

Personal computer makers have a lot of aspects to consider in order to keep up with their competition and to stay current with the latest trends. Investors who focus on technology should consider exchange traded funds (ETFs) to cover the wide array of tech trends provoking the industry. [Why Tech ETFs Deserve Another Look.]

The iPad and the computer tablets are one hot topic in the tech world. Now make way for cloud computing. Cloud computing is the latest trend sweeping the tech sector, and keeping personal computer companies on their toes. Cloud computing  lets companies store and process vast amounts of data in huge warehouses of servers run by third parties. The data can then be accessed over the Internet whenever and wherever needed, explains The Economist.

New competitors  have jumped into this market and are trying to persuade companies they would be better off renting capacity “in the cloud” than buying their own servers from the likes of Dell and HP. [ETFs And Apple: Why it Matters.]

The emergence of the cloud is also partly responsible for a third trend, “verticalisation”. This is the increasing tendency of makers of IT hardware, operating systems and applications to move into each other’s area of business, because their corporate customers no longer want to shop around for all these different bits and splice them together themselves. [ETF Options To Gain Indirect Exposure To Facebook.]

Consumers who use Gmail or other Web-based mail services are essentially cloud users. So are interactive gamers or people who use photo services like SnapFish or Flickr, which provide anywhere, any-time access to your digital pictures, even at Grandma’s. Small businesses increasingly see value in the cloud as a way to control information-technology expenses. Microsoft (NYSE: MSFT) says 70% of its software developers are working on cloud-related products and services — a figure that will rise to 90% within a year. [Ring Ring: First Trust Smartphone is on the Line.]

Top tech ETFs:
  • Technology Select Sector SPDR (NYSEArca: XLK)
  • iShares S&P North America Technology (NYSEArca: IGM)
Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.