Industry experts are projecting a huge increase this year in enterprise spending as companies look to migrate their networks further into the cloud.
IDC, a tech research firm, estimates that revenue from public cloud services exceeded $30.5 billion in 2012 and will grow to a staggering $72.9 billion in 2015. This growth is approximately four times faster than the IT market as a whole. Another source, Gartners, recently published the Gartner Hype Cycle for Cloud Computing, 2012, which estimates that the cloud business performance management market will grow 25% year over year. A few big names that are positioned for expansion in this area stand out as good choices for investors.
In the past decade, Google Inc (NASDAQ:GOOG) has diversified from strictly search engines and ads into areas of cloud computing services, mobile operating systems, Every story about cars that drive themselves or Google Glasses, which offer on-the-go augmented reality, reinforce the image of a company breaking new ground.
Google Inc (NASDAQ:GOOG) is the choice over other tech companies simply because of its anticipation of consumer trends and meeting the need. Google Drive is the method it has chosen to offer consumers the ability to access their files anywhere by putting their information into the Google Inc (NASDAQ:GOOG) cloud. Consumers can use the drive with any existing Gmail username and offers 5 GB of storage for free. With ads displayed in the current Google Inc (NASDAQ:GOOG) Drive format they will continue to drive ad revenue by allowing both personal and small business collaboration in the cloud for free, other cloud firms trying to attain these customers will be severely crippled by the free bottom line from Google Inc (NASDAQ:GOOG)’s cloud services such as Google Drive and Google Docs
Cisco Systems, Inc. (NASDAQ:CSCO) is best known for producing the software, switches and routers that run corporate and communications data networks. But thanks to heavy spending on research and development, as well as certain acquisitions, Cisco Systems, Inc. (NASDAQ:CSCO) is well-positioned for industry leadership in mobile computing, cloud computing, video-delivery services, network security, web conferencing and network storage.
Cisco Systems, Inc. (NASDAQ:CSCO) has put tremendous effort into ‘playing nice with others.’ Cross technology compatibility is a key consideration when IT managers worry about the interoperability of various technology components in their corporate ecosystem.
The company has set an ambitious target of doubling the revenue it derives from software in the next five years. This, in turn, should lead to a rising take rate for its expanding suite of service offerings.