Welcome!

Agile Computing Authors: Elizabeth White, Amit Gupta, Larry Alton, Pat Romanski, Astadia CloudGPS

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
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...