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    Cloud Computing is Expected to Reach $700B by 2025

    From a somewhat obscure buzzword in the early 2000s to one of the most common words in the realm of technology, cloud computing has definitely changed numerous aspects of our daily lives. However, as widespread as it is today, cloud computing is expected to grow even further, expanding the areas of technology which it encompasses. 

    So what is cloud computing? Cloud computing is a very broad term that basically means any process that does not take place locally on a single computer. Cloud computing can use a vast network of computers and servers to carry out complex and data heavy processes and deliver the end result to a user, thus, greatly decreasing the end user’s workload. 

    Today, with numerous applications operating on the cloud, such as email, streaming video and audio, social media, its presence feels almost as natural as its fluffy namesake. In fact, around 90% of all companies use some form of cloud computing today³. 

    The cloud market is projected to reach $700 billion by 2025¹, and to grow 20% year-over-year over the next five years². With such growth come investment opportunities.

    To give investors exposure to this extremely present and ever-growing sector, eToro has created the CloudComputing CopyPortfolio, which offers balanced exposure to a wide range of cloud shares.

    Check out CloudComputing

    The Impact of the Coronavirus

    One main advantage of cloud computing is that it is accessible from almost anywhere. All one needs to access a cloud service is a computer or smart device and an internet connection. Therefore, it is quite apparent that cloud computing has been in widespread use during the 2020 coronavirus pandemic.

    As numerous countries around the world employed various lockdown measures, many organisations were forced to shift to work-from-home (WFH) practices. Naturally, these practices lean heavily on the cloud, and cloud computing companies were pushed to their limits. The new workload came on top of the existing, already high usage, as the average employee uses 36(!) cloud services every day⁴. 

    Working remotely means maintaining a proper virtual office environment, and that requires constant communication, including text, video and voice calls. Despite some fears that this may reduce productivity, many companies actually embraced the change and about 74% of companies say that they will shift some employees to permanent WFH positions⁵ — and having a robust cloud infrastructure is one of the main reasons.

    Cloud is a Reality

    It is easy to understand why the cloud is here to stay, at least for the foreseeable future. Cloud computing supports so much of everyone’s daily lives that it will be impossible for contemporary society to function without it. Moreover, since cloud infrastructure has been established as the norm, many near future technologies will also depend on it.

    One example is driverless cars. A key aspect of supporting an autonomous traffic system is car-to-car and infrastructure to car communication. In other words, most of the computational power that will support and enable the impending driverless revolution will take place in the cloud. 

    Another example that will help strengthen the impact of cloud computing is the 5G revolution. The next generation network is being deployed around the world and will serve as additional infrastructure for the cloud. The increased bandwidth will enable more devices to become connected to cloud services and will also mean additional computing power for existing services. 

    Investing in Cloud Stocks

    As the world becomes more connected and a growing number of devices become linked to the global network, the cloud will only become more powerful and ever-present. Moreover, as new cloud related technologies emerge, the cloud will only deepen its roots in our everyday lives, becoming an even greater part of contemporary society. 

    To offer investors the opportunity of cloud computing investing, eToro has created the CloudComputing CopyPortfolio —  a diversified portfolio comprising pure cloud players alongside tech giants from this sector. The portfolio presents both an investment opportunity and a way to gauge and measure the growth of the industry and the companies operating in it. To track its performance, add CloudComputing to your watchlist today.

    Add CloudComputing to Watchlist

    Sources:

    1. https://www.globenewswire.com/news-release/2019/05/30/1859268/0/en/Cloud-Computing-Market-will-grow-at-CAGR-of-10-2-to-hit-696-25-billion-by-2025-Global-Analysis-by-Trends-Size-Share-Deployment-Product-Organization-size-Application-and-Regions-Adr.html
    2. https://www.fool.com/investing/2019/08/06/why-cloud-computing-could-be-a-major-investing-the.aspx
    3. https://leftronic.com/cloud-computing-statistics/
    4. https://www.mcafee.com/blogs/enterprise/cloud-security/12-must-know-statistics-on-cloud-usage-in-the-enterprise/
    5. https://www.gartner.com/en/newsroom/press-releases/2020-04-03-gartner-cfo-surey-reveals-74-percent-of-organizations-to-shift-some-employees-to-remote-work-permanently2

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