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4 Stocks to Make the Most of the Rising Demand for BDaaS
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With digitization advancing rapidly, vast amounts of data are being generated on a regular basis. Such data is rich with information that businesses can analyze to their advantage. They can gain useful insights and take informed decisions for improving their operational efficiency as well as productivity. However, setting up a big data analysis infrastructure is costly and there are firms which might find it difficult to afford and maintain, especially if those are just starting out. To address this issue, Big Data as a Service (“BDaaS”) has arrived. BDaaS offers businesses data management and analytics tools via cloud platforms which means that firms don’t have to buy expensive hardware since storage and computation are taken care of by the vendor. This in turn also reduces the time taken to utilize such services as firms can simply sign up for BDaaS by paying regular subscription fees and start using the available software and tools for their benefit.
The outbreak of the coronavirus last year drove demand for various cloud computing services further. This is because cloud computing allows firms and employees to access data and other information from anywhere, simply with the help of an Internet connection. Since BDaaS is available on the cloud, firms also have the option to use the resources per their requirements. If they are expanding their operations, which might lead to higher data generation, they can use more resources. Meanwhile, they can scale down their usage when they don’t need to store and analyze too much data. What’s more is that as a business progresses, its requirements change, and BDaaS with its suite of analytics tools can provide firms with the right technology that they require at that moment.
Reflective of the advantages that BDaaS is offering to firms, in terms of storing and analyzing vast amounts of data, it is only expected that the BDaaS market will grow going forward. Per a report by Research and Markets, the global BDaaS market is estimated to see a CAGR of about 28% from 2021 to 2026, as mentioned in a Business Wire article.
4 Stocks to Keep a Close Eye On
With the importance of studying and analyzing data rising continuously, BDaaS has become a go-to option for firms for increasing their efficiency and productivity by utilizing such big data. This seems like an opportune moment to consider companies with strong fundamentals that can make the most of this trend. We have selected four such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Corporation (MSFT - Free Report) offers Azure HDInsight which is an open-source analytics service in the cloud for enterprises. HDInsight can run popular open-source frameworks like Apache Hadoop, Spark and Hive, for effectively processing vast amounts of data.
Shares of Microsoft have gained 30.7% year to date and the company currently has a Zacks Rank #2. The Zack Consensus Estimate for its current-year earnings has moved up 3.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 8%.
Oracle Corporation (ORCL - Free Report) provides Oracle Big Data Service, which provides a cost-effective Hadoop environment to enterprises on the cloud.
Shares of this Zacks Rank #2 company have risen 37.5% year to date. The Zacks Consensus Estimate for its current-year earnings has risen 0.2% over the past 30 days. The company’s expected earnings growth rate for next year is 13.1%.
Alphabet Inc.’s (GOOGL - Free Report) Google offers several BDaaS through the Google Cloud platform, namely, Dataproc which allows firms to store and analyze large volumes of data. It also offers BigQuery, which is a cost-effective multicloud data warehouse, and other services.
Shares of Alphabet have risen 54.6% year to date and the company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved 14.3% north over the past 60 days. The company’s expected earnings growth rate for the current year is 73.8%.
SAP SE (SAP - Free Report) offers SAP Big Data Services, which allow firms to utilize a ready-to-use big data framework using open-source frameworks like Apache, Hadoop and Spark.
Shares of SAP have gained 13.2% year to date. The Zacks Consensus Estimate for its current-year earnings has risen 13.6% over the past 60 days. The Zacks Rank #3 company’s expected earnings growth rate for the current year is 17.6%.
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4 Stocks to Make the Most of the Rising Demand for BDaaS
With digitization advancing rapidly, vast amounts of data are being generated on a regular basis. Such data is rich with information that businesses can analyze to their advantage. They can gain useful insights and take informed decisions for improving their operational efficiency as well as productivity. However, setting up a big data analysis infrastructure is costly and there are firms which might find it difficult to afford and maintain, especially if those are just starting out. To address this issue, Big Data as a Service (“BDaaS”) has arrived. BDaaS offers businesses data management and analytics tools via cloud platforms which means that firms don’t have to buy expensive hardware since storage and computation are taken care of by the vendor. This in turn also reduces the time taken to utilize such services as firms can simply sign up for BDaaS by paying regular subscription fees and start using the available software and tools for their benefit.
The outbreak of the coronavirus last year drove demand for various cloud computing services further. This is because cloud computing allows firms and employees to access data and other information from anywhere, simply with the help of an Internet connection. Since BDaaS is available on the cloud, firms also have the option to use the resources per their requirements. If they are expanding their operations, which might lead to higher data generation, they can use more resources. Meanwhile, they can scale down their usage when they don’t need to store and analyze too much data. What’s more is that as a business progresses, its requirements change, and BDaaS with its suite of analytics tools can provide firms with the right technology that they require at that moment.
Reflective of the advantages that BDaaS is offering to firms, in terms of storing and analyzing vast amounts of data, it is only expected that the BDaaS market will grow going forward. Per a report by Research and Markets, the global BDaaS market is estimated to see a CAGR of about 28% from 2021 to 2026, as mentioned in a Business Wire article.
4 Stocks to Keep a Close Eye On
With the importance of studying and analyzing data rising continuously, BDaaS has become a go-to option for firms for increasing their efficiency and productivity by utilizing such big data. This seems like an opportune moment to consider companies with strong fundamentals that can make the most of this trend. We have selected four such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Corporation (MSFT - Free Report) offers Azure HDInsight which is an open-source analytics service in the cloud for enterprises. HDInsight can run popular open-source frameworks like Apache Hadoop, Spark and Hive, for effectively processing vast amounts of data.
Shares of Microsoft have gained 30.7% year to date and the company currently has a Zacks Rank #2. The Zack Consensus Estimate for its current-year earnings has moved up 3.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 8%.
Oracle Corporation (ORCL - Free Report) provides Oracle Big Data Service, which provides a cost-effective Hadoop environment to enterprises on the cloud.
Shares of this Zacks Rank #2 company have risen 37.5% year to date. The Zacks Consensus Estimate for its current-year earnings has risen 0.2% over the past 30 days. The company’s expected earnings growth rate for next year is 13.1%.
Alphabet Inc.’s (GOOGL - Free Report) Google offers several BDaaS through the Google Cloud platform, namely, Dataproc which allows firms to store and analyze large volumes of data. It also offers BigQuery, which is a cost-effective multicloud data warehouse, and other services.
Shares of Alphabet have risen 54.6% year to date and the company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved 14.3% north over the past 60 days. The company’s expected earnings growth rate for the current year is 73.8%.
SAP SE (SAP - Free Report) offers SAP Big Data Services, which allow firms to utilize a ready-to-use big data framework using open-source frameworks like Apache, Hadoop and Spark.
Shares of SAP have gained 13.2% year to date. The Zacks Consensus Estimate for its current-year earnings has risen 13.6% over the past 60 days. The Zacks Rank #3 company’s expected earnings growth rate for the current year is 17.6%.