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

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Adobe Inc372.95 USD-1.59
Alibaba Group Holding Ltd ADR212.59 USD-2.50
Alphabet Inc A1,483.46 USD-2.21
Alphabet Inc Class C1,485.11 USD-2.18
Amazon.com Inc2,095.97 USD-2.65
Microsoft Corp178.59 USD-3.16
Salesforce.com Inc189.50 USD-2.00
ServiceNow Inc344.48 USD-2.40

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.