According to Reportlinker, a leading market research solutions firm, the global cloud computing market is expected to be valued at $405.2 billion in 2022 and grow to $1.46 trillion by 2028, at a compounded annual growth rate (CAGR) of 23.9%.

A few key factors are helping to drive this stellar growth such as favourable government policies, high-quality cloud computing vendors, and improved internet infrastructure. Many service providers are also working to provide trustworthy and cost-effective cloud-based solutions that can bypass issues like staff expenses, high electricity costs, and downtime-related issues.1

With more reliable cloud computing solutions, the average spending on computer and storage infrastructure products has also increased. According to International Data Corporation (IDC), a provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets, spending on computer and storage infrastructure products for cloud deployments amounted to $18.3 billion, up 17.2% year-over-year in the first quarter of 2022.

The firm said that growth remains strong despite issues surrounding the supply of system components and global transport networks.

Furthermore, IDC said that dedicated cloud infrastructure spending increased to $5.9 billion—a growth rate of 20.5%—and it expects spending to surpass $90.0 billion in 2022. It also said that it expects spending on shared cloud computing infrastructure to exceed spending on non-cloud infrastructure for the first time in 2022, further proving that cloud computing is gaining in popularity and becoming a preferred solution for businesses worldwide.2

Walmart, Investing in Hybrid Cloud

On the other hand, Walmart Inc. has opted to reduce its reliance on the cloud. The company said that over the last few years, it has invested in a massive network of 10,000 edge nodes—in-house devices and servers that can process information locally—and will no longer be entirely dependent on cloud computing solutions providers.

This so-called hybrid approach allows Walmart to both rent computing power and storage from companies like Alphabet Inc.’s Google and Microsoft Corp (and switch from Google and Microsoft’s web-bases services seamlessly), while also taking control of its own computing in-house. This system is helping Walmart save up to 18% annually on cloud spending and mitigates problems that arise from outages.

More and more cloud providers are offering hybrid cloud solutions, viewing it as a profitable way to sell both their subscription services and “on-premise” infrastructure.3

Source: communicationtoday.co

Amazon, Robust Growth in AWS

Amazon.com, Inc. recently reported its financial results for the second quarter of the year. The company reported a loss per share and overall revenue came in below expectations.

However, the cloud computing unit, Amazon Web Services (AWS), showed robust growth. Revenue for AWS surged 33% year-over-year to $19.74 billion with an operating income of $5.72 billion.4  This helps reinforce the importance of the cloud computing business for Amazon.com, and how the demand for cloud computing continues to remain strong.

Source: www.robin.to

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/.

For the latest information on investing in cloud computing and industry updates on related investment products, sign up for our weekly newsletter here.

 

Sources:

  1. “The cloud computing market size is expected to be valued at US$ 405,295.8 million in 2022 and reach US$ 1,465,818.2 million by 2028,” GlobeNewswire, July 20, 2022; https://www.globenewswire.com/news-release/2022/07/20/2483111/0/en/The-cloud-computing-market-size-is-expected-to-be-valued-at-US-405-295-8-million-in-2022-and-reach-US-1-465-818-2-million-by-2028.html.
  2. Daws, R., “IDC predicts cloud infrastructure spending this year will hit $90.2B,” CloudTech, July 4, 2022; https://www.cloudcomputing-news.net/news/2022/jul/04/idc-cloud-infrastructure-spending-this-year-hit-90-2b/.
  3. Carr, A., “Walmart Is Weaning Itself Off of Big Tech,” Bloomberg, July 12, 2022; https://www.bloomberg.com/news/newsletters/2022-07-12/walmart-cloud-weans-itself-off-of-microsoft-azure-google-cloud.
  4. Novet, J., “Amazon says cloud-computing revenue rose 33%, topping Wall Street estimates,” CNBC, July 28, 2022; https://www.cnbc.com/2022/07/28/aws-earnings-q2-2022.html.

 

The contents of this blog are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. These contents are not an offer or solicitation of an offer or a recommendation to buy or sell any securities or financial instrument, nor shall it be deemed to provide investment, tax or accounting advice. The information contained herein is intended for informational purposes only.
Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds (funds). Please read the prospectus before investing. ETFs and mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus for a complete description of risks relevant to ETFs and mutual funds. Investors may incur customary brokerage commissions in buying or selling ETF and mutual fund units.
Certain statements contained in this blog may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve Funds undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Sign up for our newsletter

Disruptive and innovative trends are fundamentally transforming our world. Remain educated and be informed.