How Investment in Cloud Computing Can Be Good, Bad or Ugly
Grazed from CloudWedge. Author: Hadley Jones.
Have you ever thought about how much money it takes to set up a cloud computing service? Behind the end-user convenience of low or no capital investment and pay-per-use agreements, somebody has to finance the infrastructure, the computing power, the networking and the personnel to look after it. Cloud service providers have to take a deep breath and write large checks to put the service in place – or find somebody else who is willing to make the investment. So where (if you were so inclined) should you put your money if you want a good return on investment?
The Money-Makers
Enthusiasm for cloud service providers as an investment opportunity seems to have calmed in recent times. Some emerging companies make it clear that the pot of gold at the end of the rainbow is still far away, if indeed it can ever be reached. Box Inc., the innovative online file sharing and synchronization service provider, recently filed to go public with this statement: “We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.”…

