Cloud Computing: In Whom Do I Invest?

Grazed from YahooFinance. Author: Shudeep Chandrasekhar.

For the uninitiated, cloud computing can be a daunting subject. For investors, it's a nightmare. ETFs like First Trust ISE Cloud Computing Index Fund (SKYY) do a good job of aggregating the best stocks in this segment, but as with any ETF you tend to get a lot of chaff with the wheat. This article showcases the three largest cloud providers in the world and highlights why they will remain at the top for the foreseeable future.

What is cloud computing?

In its simplest form, the cloud is merely virtual real estate space for data. As businesses started to move away from keeping manual records to "computerizing" themselves, they needed increasingly large amounts of hardware and a host of software applications to keep the engine running. In addition, they had to invest in networking solutions and other add-ons that made them more efficient...

But that efficiency came at a cost, and the cost was so high that IT soon became the largest expense item for most companies...

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