Organizations continue to see the benefits of cloud computing as part of their core business operations, leading to even greater spending for cloud-based computing applications.
The pandemic certainly underscored the importance of cloud-based computing as social distancing measures allowed employees to work from home and access files or applications on cloud networks. Furthermore, cloud computing is not just a passing trend, but one that should continue to persist.
“Businesses’ adoption of cloud computing services shows no sign of slowing down: according to tech analyst Canalys, the third quarter of 2021 saw worldwide spending on cloud infrastructure services reach almost $50 billion as digital transformation initiatives continue to unfold,” a ZD Net article notes.
“Cloud infrastructure services include the provision of infrastructure-as-a-service and platform-as-a-service, either on a dedicated hosted private infrastructure or shared infrastructure,” the article adds further. “These services continue to be in high demand this quarter, said Canalys: expenditure has grown $2.4 billion compared to the previous quarter, and almost $13 billion since the same period last year.”
An ETF Option for Cloud Computing Growth
ETF investors have an opportunity to capture cloud computing growth potential with the Global X Cloud Computing ETF (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 that are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities that 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.
CLOU gives investors:
- High growth potential: The global cloud services market increased by 11% from 2019 to 2020, exceeding $270 billion. Forecasts suggest that the market could reach nearly $400 billion by 2022.
- Structural tailwinds: Demand for cloud computing services surged in the pandemic and seem unlikely to abate, as work, school, and social activities moved increasingly to digital experiences.
- Unconstrained approach: Cloud computing spans multiple segments, and its most innovative companies include both household names and newcomers from around the world. CLOU invests accordingly, without regard for sector or geography.
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