The cloud computing market continues to grow with cloud services and solutions providers announcing large investments and expansion.
Alibaba Group Holdings, Inc., a Chinese e-commerce giant with a cloud computing presence, announced an investment of $1.0 billion over the next three years to support customers using its cloud services and solutions. According to Gartner, a technology research and consulting firm, Alibaba is the third-largest cloud computing provider behind Microsoft Corporation and Amazon.com Inc’s Amazon Web Services (AWS).
The investment will primarily consist of financial and non-financial incentives to help its customers localize their cloud computing needs. Alibaba’s management sees cloud computing as an important component of the business, and it could provide future growth and profitability.
Recently, due to a slowdown in the Chinese economy, Alibaba’s cloud computing business has slowed down. However, the company is trying to increase its presence outside of China. Over the past few years, the company has opened data centers in Singapore and Thailand.1
Alphabet Inc’s Google announced that it will set up its first cloud region—which is a cluster of data centers—in Greece. This will contribute $2.13 billion to Greece’s economy and create 20,000 jobs by 2030. Greece’s cloud region will provide storage and cloud computing services for Google customers. It will let organizations better use their data, enhance security, and improve low latency.
Google announced its cloud region in Greece just two years after Microsoft announced its plans to set up data centers in the country. Meanwhile, Amazon’s cloud computing business unit opened its first office in Greece last year.2
Paylocity Holding Corporation
Paylocity Holding Corporation, a provider of cloud-based payroll and human capital management software solutions for medium-sized organizations in the U.S., announced its revenue for the fiscal year 2022 ended on June 30 surged 34% year-over-year.
Regarding business conditions, the Co-CEO of the company, Steve Beauchamp, said that the company’s software solutions continue to resonate with customers and there’s been a significant increase in product utilization.3
Concentrix Corporation, focused on providing customer experience solutions and technology, was awarded a Leader position for Customer Experience Management (CXM).
This position was awarded to Concentrix for the seventh year in a row by Everest Group—a global research firm focused on strategic IT, engineering services, business services, and sourcing.4
Concentrix also recently announced its financial results for its third quarter of fiscal 2022 ended on August 31. Chris Caldwell, the president and the CEO of the company, said that Concentrix is seeing strong revenue growth and profit. In addition to this, he said that the company has seen strong new business signings in recent quarters and closed two large deals that will continue to provide an edge to the company over the long term.5
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For the month, Zscaler Inc. made the largest contribution to the Fund, followed by Citrix Systems Inc., and Paylocity Holding Corp. The largest detractors to performance for the month were Servicenow Inc., followed by Amazon.Com Inc., and Oracle Corp. On last rebalance, these securities were added to the portfolio: Concentrix Corp. and DocuSign Inc. By weight, the Fund’s largest geographic exposure was to the United States, followed by Germany and Israel.
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- Kharpal, A., “Alibaba pledges $1 billion to cloud computing customers to reignite growth,” CNBC, September 22, 2022; https://www.cnbc.com/2022/09/23/alibaba-pledges-1-billion-to-cloud-computing-customers-to-reignite-growth.html.
- Google to build its first cloud region in Greece,” Financial Post, September 29, 2022; https://financialpost.com/pmn/business-pmn/google-to-build-its-first-cloud-region-in-greece,
- “Paylocity Announces Fourth Quarter and Full Fiscal Year 2022 Financial Results,” Paylocity Holdings Corporation, August 4, 2022; https://investors.paylocity.com/news-releases/news-release-details/paylocity-announces-fourth-quarter-and-full-fiscal-year-2022.
- “Concentrix Earns Another Leader Recognition in Highly Competitive Customer Experience Management Market,” Concentrix Corporation, September 8, 2022; https://concentrix.gcs-web.com/news-releases/news-release-details/concentrix-earns-another-leader-recognition-highly-competitive.
- “Concentrix Reports Third Quarter 2022 Results,” Concentrix Corporation, September 28, 2022; https://concentrix.gcs-web.com/news-releases/news-release-details/concentrix-reports-third-quarter-2022-results.