You’ve heard the term thrown around but what the heck is “cloud computing”? Well, this post is going to review what is cloud computing and how you too can win with cloud computing and investing in the stock market.
When the internet was in its infancy the word ‘cloud’ was used as a metaphor to describe how the complex telephone networks connected. Now, many people and organizations refer to it as ‘THE cloud’ but it’s not a single entity, and it doesn’t exist in one just place. So, what exactly is it?
Cloud is a model of computing where servers, networks, storage, development tools, and even applications (apps) are enabled through the internet. Instead of organizations having to make major investments to buy equipment, train staff, and provide ongoing maintenance, some or all of these needs are handled by a cloud service provider.
Think about it a different way, we all know that computers have a limited life span. Your phone is out of date within a year or two. Your computer that you just bought a few years ago, is woefully behind the times now. Technology improves quickly and if you are business owner, constantly upgrading and buying new hardware is a huge expense and requires you to make large purchases every year or every couple of years. This is the allure of cloud computing where you reduce how much you have to spend to buy and maintain your critical systems.
For us investors, we too can also win with cloud computer. There are several ETFs that specialize in this field such as Global X Cloud Computer ETF (CLOU) and Digital Realty Trust, Inc. (DLR). If you are wondering whether this type of investment is right for your portfolio, set up a FREE consultation appointment here.
Read this article if you want to learn more about how the big companies, like Amazon, Microsoft, and Google, are using “THE cloud” to their benefit.