Cloud is fast emerging as as the new model of computing since many companies now prefer to rely on cloud based service providers for highly specialized computing services so that they can focus on their core businesses.
Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) —two of three most valuable companies in the US—reported better-than-expected results last month thanks mainly to strong growth in their cloud computing businesses, Azure and Amazon Web Services (AWS).
In simple words, cloud computing is the delivery of computing services, including servers, storage, databases, networking, software and services and more, over the Internet by an external provider.
In addition to cost savings, this results in higher productivity, better security and greater efficiency.
The global cloud computing market is estimated to grow to more than $300 billion by 2022, up from about $188 billion currently.
The First Trust Cloud Computing ETF (SKYY - Free Report) holds companies actively involved in the cloud computing industry. Its top holdings include Zynga (ZNGA - Free Report) , VMware (VMW - Free Report) , Facebook (FB) and Netflix (NFLX - Free Report) .
The Global X Cloud Computing ETF (CLOU) holds companies that are positioned to benefit from growing adoption of this technology.
Shopify (SHOP), Zscaler (ZS - Free Report) , Coupa Software (COUP - Free Report) and Twilio (TWLO) are among its top holdings.
To learn more about the ETFs, please watch the short video above.