Grazed from InsiderMonkey. Author: Marshall Hargrave.
We believe that a continued rapid consumption of network capacity, driven by a rising use of tablets and smartphones, will propel companies operating in the cloud computing and wireless network optimization space. In the interim, these companies are seeing a slowdown due to uncertainty in the economy, which has led to IT budget cuts. It appears that several funds are making moves into the cloud computing space in preparation for a future shift in enterprise technology that includes data center consolidation and virtualization. The five companies below are some of the top ways to play cloud computing—and include shareholders such as Jim Simons, D.E. Shaw, Steven Cohen and Ken Griffin.
The traditional data networking company, Cisco Systems, Inc. (NASDAQ:CSCO), is in competition with server and computing players for market share in the cloud computing and wireless area network optimization—see our other thoughts on Cisco. Cisco, being a $100 billion market cap company, has attracted some big name interest, including Ken Fisher and D.E. Shaw. Also, as of 2Q, Cisco was an Edinburgh Partners’ Top Pick and saw five funds with over 5% of their 13F portfolio invested in Cisco—see all funds owning Cisco. There have been a round of insider sales of late around $19, which is where the company currently trades. With Cisco’s initiative to focus on data storage partnerships versus acquisitions, the company is expected to grow EPS by only 7.7% next year…