The coronavirus outbreak continues to be a major concern across the globe, with the situation aggravating in the United States, Europe and India. Unfortunately, the health crisis has already claimed more than a million lives globally. In such a scenario, some industries including cloud computing have been thriving with majority of people working from home.
Cloud computing and storage have empowered video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. It has also found applications in social networking, messaging apps and streaming services. Cloud computing is also supporting organizations in remotely processing a lot of information, developing and running key applications and services.
In the wake of the pandemic, cloud technology adoption is projected to witness robust growth in sectors where the work-from-home initiatives are helping sustain business functions. Notably, the global cloud computing market size is projected to rise from $371.4 billion in 2020 to $832.1 billion by 2025, at a CAGR of 17.5%, per a ResearchAndMarkets.com report.
Expanding Cloud Computing Offerings
Keeping up with the growing demand, major players in the cloud computing space are increasingly expanding their offerings. Oracle (ORCL) is seeing robust growth in the adoption of cloud solutions. The company’s latest Exadata Cloud@Customer service offering is also gaining rapid adoption among on-premise customers. Recently, Oracle won a deal from Altair, a software and cloud solutions provider, for migrating the latter’s high computing performance workload to its Oracle Cloud Infrastructure. Moreover, the next-generation autonomous database launched by Oracle, supported by ML, is becoming popular.
Alibaba (BABA) is also working hard to expand its presence in the promising cloud computing space. In this regard, the company introduced innovative cloud-based products at the 12th annual Apsara Conference. Its cloud computing arm Alibaba Cloud unveiled a cloud computer, which happens to be the company’s first such device. The palm-sized cloud computer provides users with unlimited computing resources anytime and anywhere, with the help of back-end cloud support.
Further, Alibaba Cloud introduced an autonomous logistic robot, which is meant for boosting the last-mile delivery capacity of Alibaba in the e-commerce space. Additionally, the company introduced Cloud Lakehouse — an advanced big data architecture, Lindorm — a cloud-native multi-model database, PAI-DSW 2.0 — a machine-learning interactive development platform and Sandboxed-Container 2.0 —a cloud container service for Kubernetes.
Going on, Ribbon Communications (RBBN) recently informed the availability of its cloud and edge platform — Session Border Controller Software Edition Lite — on Amazon.com’s (AMZN) cloud computing arm — Amazon Web Services.
Cloud Computing & Healthcare
In today’s time, data management and storage have become an integral aspect of healthcare. Moreover, the coronavirus pandemic has resulted in doctors increasingly opting for online consultations. Thus, with increasing technological advancements in healthcare sector, rising adoption of healthcare IT solutions and advantages of cloud usage in healthcare, the cloud computing market is on a growth trajectory, per the sources. The space is forecasted to reach a worth of around $64.7 billion by 2025 from $28.1 billion in 2020, at a CAGR of 18.1%, according to ReportsnReports.
In fact, Microsoft has launched Microsoft Cloud for Healthcare to reduce administrative tasks and manage rising telehealth workloads. The service will be available from Oct 30, 2020. Microsoft Cloud for Healthcare will reportedly be inclusive of Azure, Microsoft Dynamics 365, Microsoft Power Platform and Microsoft 365 capabilities along with all its other healthcare solutions to offer health care businesses with better insights to improvise data interoperability, operational analytics and patient interactions and experiences.
Cloud Computing ETFs to Keep Soaring
Gartner Report, spending on public cloud is expected to grow 6.3% to $257.9 billion while SaaS, and platform-as-a-service (PaaS) growth rates are projected to be 2.6% and 16%, respectively, in 2020. By 2022, the public cloud services market is projected to hit $364.1 billion, up 50% from $242.7 billion in 2019, added the Gartner report. Here we highlight some ETFs that can gain from the growing demand for cloud computing as the coronavirus situation aggravates: First Trust Cloud Computing ETF ( SKYY Quick Quote SKYY - Free Report)
The fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the ISE Cloud Computing Index. It tracks the performance of companies actively involved in the cloud computing industry. The fund holds about 64 securities in its basket. It has AUM of $4.95 billion and an expense ratio of 0.60% (read:
Time for Tech is Back: 5 Low P/E ETFs to Play). Global X Cloud Computing ETF ( CLOU Quick Quote CLOU - Free Report)
The fund seeks to invest in companies positioned to benefit from the increased adoption of cloud computing technology, including companies whose principal business involves offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), managed server storage space and data-center real estate investment trusts, and/or cloud and edge computing infrastructure and hardware. The fund holds about 36 securities in its basket. It has AUM of $1.22 billion and an expense ratio of 0.68% (read:
Snowflake Melting After a Red-Hot IPO: Buy the Dip With ETFs?). WisdomTree Cloud Computing ETF ( WCLD Quick Quote WCLD - Free Report)
The fund seeks to track the price and yield performance, before fees and expenses, of the BVP Nasdaq Emerging Cloud Index, an equally weighted Index designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers. The fund holds about 54 securities in its basket. It has AUM of $798.3 million and an expense ratio of 0.45% (read:
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