Cloud Computing Services: A Necessity In WorkPlaces

June 03, 2022 at 12:30 PM EDT

Enterprise software values haven’t been as ineptly affected by increasing interest rates, rapid inflation, and general economic apprehension as other forms of technology. IT executives report that demand for cloud computing services is holding steady as companies continue to refocus on the power of data and the cloud.

Computer-related businesses which include International Business Machines, Hewlett-Packard Enterprise, and Oracle Corp. have shown resilience in the face of technology stock declines. Since the beginning of the year, all three have beaten sliding market averages.

It has plummeted more than 23% since the beginning of the year on the Nasdaq Composite Index. Share prices for NYSE: IBM, a company that delivers cloud-based corporate software and services, gained 4.3 percent over the same time.

HPE, a commercial software company that was carved from Hewlett-Packard, has seen its prices stabilize. Online software orders almost doubled from the previous year, according to the company’s earnings release on Wednesday, which showed revenues of $6.7 billion for the three months ending April 30, up 1.5% year over year.

Oracle’s stock price hasn’t done much better, plummeting by almost 17% so far this year. Even yet, its value has regularly outperformed that of the broader technology market. During the fourth quarter, which ended in February, the business recorded a double-digit increase in cloud revenue.

“Enterprise IT is deemed safer and less temperamental than consumer IT by investors,” said Karena Man, a consultant at management consulting company Egon Zehnder. It was a total loss for online shoppers when the dot-com crash occurred in the early 2000s. Enterprise technology, on the other hand, was where she claimed investors were still pouring their money.

Broadcom Inc., a semiconductor powerhouse, said this week that it would pay $61 billion for VMware Inc., a sign of the growing demand for business technology. Virtualization technology, such as that provided by VMware, allows for less costly software to take the place of more expensive physical equipment.

Johnson & Johnson, a healthcare and consumer products company located in New Brunswick, New Jersey, has named Jim Swanson its executive vice president and enterprise chief information officer. As the Covid-19 outbreak has shown, cloud-based corporate technologies are critical for coping with market shifts and coping with difficult times.

Ms. Man advised companies to continue using cloud computing, in the same manner, they used it during the pandemic—for remote work, customer support, and productivity. ‘Companies who want to reduce their risk exposure and prepare for future volatility concerns should be thinking about this now,’ she says.

Cloud computing services, which allow consumers to rent computer resources, are in increasing demand. According to IT research and consulting firm Gartner Inc., global spending on public cloud services is expected to exceed $494.7 billion this year, up 20.4 percent from last year. Many businesses use many clouds, which provide a wide range of options for storing data and running applications.

“The ability to readily determine where to allocate a task based on cost-effectiveness is a vital capability,” said Brennan Sullivan, chief information officer of Quest Software Inc. “It’s such a fundamental requirement inside any workplace IT environment that at this moment, I don’t see any link with the market’s moves.”

Enterprise IT firms are benefiting from the growing demand for cloud computing.

Salesforce Inc., the cloud market’s largest pure-play seller of subscription-based corporate software, reported quarterly sales of $7.4 billion on Tuesday, up 24% year over year. The company, whose main product is customer relationship management software, is expected to produce $30 billion in annual revenue.

Several computer behemoths, such as Microsoft and Amazon.com, have enjoyed significant growth in their cloud computing businesses. At the end of April, Windows Azure cloud revenue for the three months ending March was $23.4 billion, up 32% from a year before.

When Amazon reported its first quarterly loss in seven years in April, the cloud was a source of strength for the firm. There was a 37 percent increase in the first-quarter revenues of Amazon’s cloud computing provider, Amazon Web Services, to $18.4 billion. Sales for the company as a whole increased by 7% to $116.4 billion.

According to Erik Bradley, chief strategist at Enterprise Technology Research, big data storage is becoming increasingly important to the way most businesses operate. Mr. Bradley predicts that data governance, management, and other analytic tools will be in high demand regardless of economic conditions.

Last year, Databricks Inc. raised $1.6 billion in a single round of fundraising, bringing the company’s private market valuation to $38 billion. In February of the current year, the firm declared a revenue increase of 80% over the previous year’s $800 million.

According to John-David Lovelock, a research vice president, and senior analyst at Gartner, there is “no meaningful chance to withdraw expenditure” on technology that helps organizations increase revenue.

The post Cloud Computing Services: A Necessity In WorkPlaces appeared first on Best Stocks.

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Cloud Computing Services: A Necessity In WorkPlaces

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