Cloud computing has been a boon for companies that have been able to capitalize on the increased work-from-home labor force amid the Covid-19 pandemic. As more countries continue to undergo a recovery around the globe, cloud computing will be one of those sectors that will assist recuperating economies.
“Looking at the public clouds developed in the last 15 years, it almost seems like they were designed to handle the global demand shock caused by the Covid-19 pandemic,” noted a ZDNet article. “Not only did the pandemic turn millions of office workers into home and remote workers overnight, it also changed how every IT department and development shop functioned. Without public cloud apps, development services, tools and infrastructure available to every business and consumer on demand, imagine how different (and hobbled) the pandemic response would have been. In 2020, cloud proved that, indeed, one should never let a good crisis go to waste.”
“In 2021, cloud will power how companies adapt to the ‘new, unstable normal.’ No one knows how far into 2021 we’ll continue to work from home, shop primarily online, or avoid air travel — but it’s clear that every enterprise must become more agile, responsive and adaptive than ever before,” the article added.
As cloud computing continues to power through 2020 and beyond, one such fund ETF investors can consider is the Global X Cloud Computing ETF (CLOU). Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services.
The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribute infrastructure and/or hardware components used in cloud and edge computing activities.
An additional fund to consider in the cloud computing space is the WisdomTree Cloud Computing Fund (WCLD). The fund seeks to track the price and yield performance of the BVP Nasdaq Emerging Cloud Index, which is designed to track the performance of emerging public companies primarily involved in providing cloud computing software and services to their customers.