According to data from Canalys, a technology research, analytics and marketing firm, total cloud infrastructure services spending in 2021 amassed to $191.7 billion. In 2020, this figure was $142.0 billion, representing a 35% increase in cloud infrastructure spending.
The top three market leaders during the fourth quarter of 2021 were Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. All together, these three cloud providers reported growth of 45% and were 64% of the total customers’ spend during the quarter.
AWS accounted for 33% of total cloud infrastructure services spent in the fourth quarter of 2021. Recently, Meta Platforms, Inc. chose AWS as a long-term strategic cloud service provider, as the company moves away from social media and more towards metaverse over the next five years.
Canalys’ research analyst, Blake Murray, said that cloud services providers are well positioned as firms and individual developers are making strides into the metaverse. In the virtual and augmented reality environment, computing will be in high demand along with storage, machine learning, data analytics, and Internet of Things (IoT).1
Amazon.com Inc, Leading Cloud Service AWS
Amazon.com, one of the largest holdings in the fund and the provider of Amazon Web Services (AWS), recently announced its first stock spilt since 1999, and fourth since the company did an initial public offering (IPO) in 1997.
The company’s board of directors has approved a 20-for-1 stock split. A stock split increases the number of shares in the company and reduces the share price. A 20-for-1 stock split means that each AMZN share will be worth 20 shares. Furthermore, the board of directors of Amazon has also authorized a share buyback plan that’s worth $10.0 billion.
In a statement, Amazon’s spokesperson said the stock split will give the company’s employees more flexibility in how they manage their equity, and it will make share price more accessible for people seeking to invest in Amazon.2
Beyond this, AWS is using a 3D metaverse-like game called AWS Cloud Quest: Cloud Practitioner to teach its users how to use its cloud computing platform. This free game with focus on teaching foundations of cloud computing and help early career or new-to-cloud adult learners develop practical cloud skill through interactive learning and hands-on activities using AWS services.3
Oracle Corp, Leading Cloud SaaS Provider
Oracle Corp., one of the top five holdings in the fund, is a leading cloud software-as-a-service (SaaS) provider. The company has recently suspended all of its operations in Russia. This announcement came as the Ukrainian minister of digital transformation tweeted at the company asking for support.4
Oracle also reported financial results for the third quarter of fiscal year 2022 ended on February 28th. In constant currency basis, revenue at Oracle increased seven percent year-over-year. This was the highest quarterly organic revenue growth since the company began transitioning to cloud.
The CEO of Oracle, Safra Catz, said that the overall revenue growth is being propelled by fast-growing cloud infrastructure and cloud applications businesses at the company.5
Investing in Cloud Computing with DATA ETF
If you’re interested in investing in a cloud computing ETF, consider the Evolve Cloud Computing Index Fund (DATA ETF), Canada’s first cloud computing ETF. DATA ETF invests primarily in equity securities of companies located domestically or internationally that have business operations in the field of cloud computing. To learn more about DATA ETF, please click here: https://evolveetfs.com/data/.
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- “Global cloud services spend exceeds US$50 billion in Q4 2021,” Canalys, last accessed April 8, 2022; https://www.canalys.com/newsroom/global-cloud-services-Q4-2021.
- Palmer, A. “Amazon announces 20-for-1 stock split, $10 billion buyback,” CNBC, March 9, 2022; https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-stock-split-10-billion-buyback.html.
- Ramel, D. “AWS Uses Metaverse-Like Game for Cloud Training,” Virtulization & Cloud Review, March 17, 2022; https://virtualizationreview.com/articles/2022/03/17/cloud-quest.aspx.
- Dave, P. and Dang, S. “Oracle suspends operations in Russia, SAP pauses sales,” Reuters, , March 2, 2022; https://www.reuters.com/business/oracle-says-it-has-suspended-all-operations-russia-2022-03-02/.
- “Oracle Announces Fiscal 2022 Third Quarter Financial Results,” Cision PR Newswire, March 10, 2022; https://www.prnewswire.com/news-releases/oracle-announces-fiscal-2022-third-quarter-financial-results-301500517.html.