Welcome!

Government Cloud Authors: William Schmarzo, Kevin Jackson, Elizabeth White, Liz McMillan, Pat Romanski

Related Topics: @CloudExpo, Containers Expo Blog

@CloudExpo: Article

Why Do Investors Care About Cloud Computing?

Cloud computing helps IT cut infrastructure costs while adding new features and services

Cloud computing seems to be the buzzword in IT these days as companies are looking for the next big thing in computing. The IT folks at the leading companies are working hard to roll out these “clouds.” This emerging technology is gaining attention from major research institutions including Carnegie Mellon University. Let's not forget the likes of Google, IBM, and Microsoft who are amongst a large group of corporations investing time and money to mature this unique idea.

Cloud computing is an idea that has been around for quite a while. It is the concept of spreading computing processes over several resources through a network. Servers and computers are not always utilized and tend to be inactive. The typical data center houses hundreds of servers where many will sit idle as neighboring servers take the brunt of the workload. The likes of Google, Microsoft, IBM and HP utilize cloud computing in their operations.

IT professionals claim that cloud computing has already become prevalent with the rise of virtualization. Several IT companies have adopted cloud computing with the advent of online applications. A great example is Google Apps, a free office applications suite very similar to Microsoft office. This type of application is refereed to as SaaS (Software as a Service) and has been touted by the likes of Information Week. Here users can create and manipulate various documents in real time using the resources of Google’s cloud. Cloud computing is providing people with the capability to access powerful computing resources from devices like cell phones, laptops, and smart phones. Cloud computing should revolutionize data processing and mobile computing even further. This is just an example of the power of clouds, but where can it take businesses and how can investors reap it’s benefits?

The Investor Connection

Investors should keep an eye on clouds not only because companies can start expanding their service offerings over the Internet, but also because clouds can help reduce costs. Cloud computing helps IT cut infrastructure costs while adding new features and services to grow core businesses. Clouds can help grow margins as costs are cut back but service offerings are expanded. Clouds are being used for office applications, application development, and also complex tasks like risk calculations. Often times, corporations will have technology sitting idle in a building, using up resources, clouds now can utilize the power of these machines and put it to use. This will help businesses cut technology spending (hardware wise) and invest in software to efficiently distribute the workload across networks to harness the previously wasted computing power.

So let us recap, why do investors care about clouds:

  • Cuts infrastructure costs, which can lead to margin expansion
  • A part of the green initiative in IT
  • Unlock computing power for complex situations

Who Is Investing in Cloud Computing?

Although cloud computing has been around in a very crude form before, companies are stepping up to actively develop high end cloud networks to offer services to customers. There are several large IT firms who are taking part in this revolution including Google, Microsoft, IBM, Oracle, HP, Salesforce.com, Amazon and Yahoo. Out of this elite group, Google and IBM hands down are positioned best to profit from the growth of cloud computing.

According to Bloomberg, IBM reported R&D costs at $1.6 million for the most recent quarter. I think it is safe to say that a substantial amount of the costs were devoted to further cloud related technology. Several computing processes rely on virtualization and resource sharing. In order to solidify clouds as a reliable force in data centers, IBM must develop the hardware and core software properly. Unveiling the Blue Cloud was a big step for the company as a it provides Web 2.0 services to corporations allowing networks to function like an Internet.

Google, another leader in the cloud computing space, is a direct customer of IBM’s hardware and software. Using IBM’s offerings, Google is strengthening its backend with investment in cloud technology. GoogleApps, is a great example of SaaS where the company has opened up it’s cloud to developers to author applications based on it’s infrastructure and even allows end users basic applications like spreadsheets, presentations, and word processing. CEO Eric Schmidt believes clouds are a core value to his company’s business and according to Information Week the company has spent over $2.0 billion on four data centers. Paired with IBM, Google seems to be the best software and service provider of clouds in the future.

It is important to stay on top of the trends in computing although they can often times be hard to understand. Google and IBM prove to be leaders in the software, services, and hardware aspects of this revolutionary idea. The global slowdown could affect these companies as they rely heavily on ad revenue (Google) and IBM who also relies heavily on international exposure. Just take my two cents and consider the developments in the field as the market continues to find a bottom and the bulls prepare to regain control next year.


[This appeared originally here and is republished in full by the kind permission of the author,, who retains copyright.]

More Stories By Santosh Sankar

Santosh Sankar is currently a junior at Penn State's Smeal College of Business where he is majoring in Finance. He has held leadership positions with the Nittany Lion Fund and currently is an analyst in the IT Sector. He just finished an internship in the financial services sector.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...