Top 5 Cloud Computing Companies’ Stocks to Invest in 2021
Cloud computing has taken the tech industry by storm, and for a good reason. By offering remote access to computing resources, the technology has become an essential tool for businesses worldwide. As the world ‘s reliance on cloud computing continues to grow, so does the demand for companies providing these services. With this demand and growth, there is an opportunity for investors to capitalize on these trends by investing in cloud computing companies. In this article, we will explore the top five cloud computing companies ‘ stocks that investors should consider investing in for 2021.
1. Amazon Web Services (AWS)
Amazon’s cloud computing division, AWS, is widely considered the kingpin of the cloud computing industry, with the highest market share. AWS offers a broad range of cloud computing services, including storage, databases, computing, and analytics. The company has captured a significant share of the market due to its robust infrastructure, cost-effectiveness, and agility. AWS is expected to continue to grow, with CAGR estimates projected to reach 29% between 2020 to 2025.
2. Microsoft Azure
Microsoft Azure is a cloud computing platform offered by Microsoft Corporation. The platform offers a suite of services, such as computing and storage, web and mobile application development, and data analytics. Microsoft Azure increases its revenue through Hybrid cloud technology, which provides users with access to on-premises, private cloud, and third-party services. The company has cemented its position as a leading provider of cloud computing services – even so, Azure still lags behind AWS in market share, with a current market share of 20.3% compared to AWS’s 32.3%.
3. Alphabet Inc. (Google Cloud)
Google’s cloud computing platform, known as Google Cloud, has emerged as a powerful competitor to AWS and Azure. Google offers a wide range of cloud services, including computing, storage, and databases. With Google’s strong brand recognition, the company is expected to see significant growth in the cloud-computing industry, with current revenue estimates projected to grow by 21% between 2019 to 2024. However, Google Cloud has a market share of around 9.5%, which is substantially lower than AWS and Microsoft Azure.
4. Alibaba Cloud
Alibaba Cloud is a cloud computing service provided by Alibaba Group. The company operates worldwide and earns revenue from various services, including databases, storage, and computing. Alibaba Cloud has a robust presence in the Asia-Pacific region, with 44% of its revenue coming from the region in 2019. The platform has become a strong competitor for AWS in the Chinese market, where Amazon ‘s cloud services experience regulatory restrictions by the Chinese government. The company’s annual growth is well above the industry average, with estimates projected to reach 26.5% between 2020 to 2025.
5. Salesforce
Salesforce is a cloud computing company that offers customer relationship management (CRM) services. Salesforce’s core product is its customer relationship software, which helps businesses manage their customer base and sales activities. The platform also offers other cloud services such as e-commerce, marketing automation, and analytics. Salesforce’s revenue from its cloud services has been on a steady upward trend, with estimates showing growth reaching 23.34% CAGR between 2020 to 2025.
Conclusion
Cloud computing is the future of the IT industry. As the world continues to rely on cloud services, investors should consider investing in these leading cloud computing companies. These top five companies offer investors a range of products and services that are essential to the modern business landscape. While AWS remains the dominant force in the cloud-computing industry, Microsoft Azure, Google Cloud, Alibaba Cloud, and Salesforce have all established themselves as fierce competitors. With the increasing growth the cloud-computing market is predicted to see, investing in one or more of these cloud providers could be a wise investment decision for investors looking for long-term growth potential.
