Covid-19 only amplified the use of cloud computing technology. As the private and public sectors continue to navigate through these uncertain times, the latter could certainly benefit from cloud computing.
“The booming uptake of the cloud in recent months has brought a realization that digital transformation can happen anywhere on any timescale,” a T_HQ article noted. “The global pandemic has taken rollouts to the extreme, with previously seven-year digital transformation plans being accelerated to just four days to get benefits out to citizens in need.”
As a case-in-point, scenario, the article pointed to the UK government utilizing cloud technology to implement stimulus measures.
“The UK government needed to distribute fiscal stimulus at speed following the COVID-19 outbreak, and it turned to cloud computing solutions to help run its entire national tax system in reverse,” the article added. “The government’s cloud strategy makes clear that cloud technology, when properly implemented, has the potential to improve the speed of delivery while increasing security and creating opportunities for organizations to innovate.”
Due to innovations using cloud technology, more government officials are hopping on board the cloud train. However, cloud computing still needs to be tailored for each specific application.
“We recognize that one size does not fit all when it comes to the use of public cloud, as many of the organizations we have spoken to have taken valid, and sometimes opposing, strategic decisions. This is often because either cloud technology is so versatile that the same outcome can be achieved in different ways, or because organizations have made decisions based on their unique maturity or capability,” said government officials.
Getting ETF Cloud Exposure
One exchange-traded fund to look at is 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 the 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.
Another fund to consider is the WisdomTree Cloud Computing Fund (WCLD). The fund seeks to track the price and yield performance of the BVP Nasdaq Emerging Cloud Index, which is designed to track the performance of emerging public companies primarily involved in providing cloud computing software and services to their customers. It is non-diversified.
For more market trends, visit the ETF Trends.