It's only the early innings for cloud computing

If you think the opportunities to invest in cloud computing have come and gone, think again.

Bryan Borzykowski 30 August, 2017 | 5:00PM
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You may think that most companies would have moved all their business processes to the cloud by now, especially with so many studies showing how much cheaper and more efficient cloud computing technology can be. In reality, though, the majority of enterprises are still using clunky servers stored on-site or software once installed off a CD-ROM. In a recent white paper, Morningstar estimated that just 20% to 25% of virtualized infrastructure is running in a public cloud environment.

That's likely to change. All three main types of cloud computing markets--software as a service (programs people use), infrastructure as a service (virtual server space) and platform as a service (a virtual environment where companies can test their own apps and programs)--are expected to grow exponentially over the next few years.

The software market will jump the most, growing from US$39 billion in 2016 to an estimated US$110 billion in 2020, but infrastructure and platform should soar as well, from US$38 billion to US$70 billion and US$13 billion to US$30 billion, respectively, according to estimates from ClearBridge Investments, a New York City-based asset manager.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Adobe Inc610.09 USD0.42Rating
Alibaba Group Holding Ltd ADR168.00 USD0.73Rating
Alphabet Inc A2,827.36 USD0.15Rating
Alphabet Inc Class C2,833.50 USD0.19Rating Inc3,409.02 USD3.31Rating
Microsoft Corp304.21 USD0.48Rating Inc291.66 USD0.57Rating
ServiceNow Inc663.18 USD1.55Rating

About Author

Bryan Borzykowski

Bryan Borzykowski  Bryan Borzykowski is a Toronto-based business and investments writer. He’s contributed to the New York Times, CNBC, BBC Capital, CNNMoney and several other publications. Bryan’s also written three personal finance books and appears regularly on CTV News.

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