The cloud computing arms race isn’t relegated to the tech giants like Google and Amazon. Organizations around the world are opening up their wallets and spending more on cloud computing technology to fortify their core businesses, resulting in record spending in 2019.

A Techradar report noted that organizations all around the world “spent a record $107bn on cloud computing infrastructure services last year according to a new report from Canalys.

Spending on cloud computing infrastructure services was up by 37 percent compared to the previous year and a third of this year’s spending went to Amazon’s cloud computing division, AWS.”

“Organizations across all industries, from financial services to healthcare, are transitioning to being technology providers,” said Alastair Edwards, chief analyst at Canalys. “Many are using a combination of multi-clouds and hybrid IT models, recognizing the strengths of each cloud service provider and the different compute operating environments needed for specific types of workloads.”

This spending is expected to increase as more companies integrate cloud computing into their existing infrastructures. According to market analysts as Canalys, this type of spending will sustain itself over the next five years with estimates that total spending on cloud infrastructure services could hit $284bn in 2024.Cloud computing

The impact of cloud computing can be felt as more companies are utilizing the technology at a rapid pace to power their core businesses. That’s why Global X ETFs, the New York-based provider of exchange-traded funds, recently launched the Global X Cloud Computing ETF (Nasdaq: CLOU).

Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from continuing proliferation of cloud computing technology and services. The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribute infrastructure and/or hardware components used in cloud and edge computing activities.

The increasingly digital and connected world that form the backdrop for CLOU’s launch is exhibiting significant growth, and is expected to continue to grow over the coming years. The cloud computing industry that was estimated to be worth $188 billion in 2018 is expected to be worth over $300 billion by 2022, a nearly 15% annualized growth rate.

For more market trends, visit ETF Trends.