Business, Tech

Is Cloud Technology Investment about to Change in a Huge Way?

When you look back on recent technological advances within the business sector, it is fair to say that cloud technology has played a big part. From giving businesses new digital ways to engage with customers or collaborate within their own organization, the cloud has made a huge impact. Whether your company uses Office 365 or Amazon Web Services, most forward-thinking organizations will have a presence there.

Why is the cloud so great for business? In simple terms, it boosts productivity, allows for greater work efficiency, and allows you to offer a better service to customers. The agile and creative nature of the cloud gives your staff the ability to work anytime from any device and collaborate much more effectively.

More money coming into the sector

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There is no doubt that cloud technology is already pretty big and has seen heavy investment into it to date. Koch Equity Development is a well-known investment firm that put $2bn into cloud tech business Infor two years ago, for example. Recent news confirmed by Infor’s CEO and industry guru Charles Phillips though has shown a real change in the investment coming into the cloud tech sector.

Speaking to online magazine Diginomica, Phillips confirmed that Koch along with Golden Gate Capital were about to put an additional investment of $1.5bn into Infor. This in turn has led many to expect Infor to offer an Initial Public Offering to retail and institutional investors by 2020. If this IPO does go ahead, it will see huge amounts of money invested into Infor to develop more cloud-based tech solutions. With Infor already turning over $3bn annually at present, it could also pave the way for the company to grow further under the leadership of Phillips.

What could it mean for the overall cloud tech sector?

The recent investment into Infor and the expected IPO that this could bring is not just good for the company on an individual basis.

Such large-scale investment and share offerings would no doubt also benefit the whole cloud tech sector. As other investors and retail shareholders look to buy into other tech companies that develop cloud solutions, an influx of new money could push the sector to greater heights in general. The additional investment into these kinds of firms could also see greater advances and applications for cloud-based solutions. If you own a business that deals with online virtual solutions, then it could be very good news for you.

Why is the cloud sector so attractive to investors?

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If you are involved in business, then investment is always a great way to grow. Of course, finding that investment can sometimes be tricky, but the cloud tech sector is very attractive at the moment for people looking to invest money. Here are a few reasons why:

  • Cloud tech is becoming more common in business

    – as we have already noted, more and more businesses now use the cloud tech solutions developed by companies such as Infor. This means that investing money into businesses that produce or run cloud-based products is a wise move. As more businesses migrate to the cloud and use the products or platforms needed, the share prices of the providers and cloud sector will rise.

  • Blockchain

    – there is a big, new trend on the horizon for cloud tech developers and it is called blockchain. Originally the code foundation that cryptocurrencies ran on, it has since been earmarked as a useful tool for business in its own right. Many people expect blockchain to soon be used in cloud-based solutions and be very popular. Investors are therefore pumping money into the sector now to get decent returns when this happens.

  • Big money to be made

    – projected figures peg the cloud computing sector to be worth over $400bn by 2020. This is a staggering sum and one that many experts think will only grow as more businesses move into the cloud to use the services provided there. It is these huge sums of money that attract investors as they will simply be able to see large profits themselves.

  • Integral to how society operates

    – there is no doubt that cloud computing and technology have already become a major part of our lives. With this only expected to grow into the future, investors are happy to put more money into it, to see a bigger return. Health care is a great example of this – cloud technology allows this vital service to run smoothly and efficiently due to the online enterprise-level software that underpins it all.

Investment in the cloud is changing

As the above shows, investing in this digital sector is attractive for a number of reasons. This will mean that the money coming into cloud computing will change in a big way, for the better. Already, deals such as the recent one for $1.5bn completed by Infor have shown this. As the overall sector continues to be more needed and more essential, more investment will come into it.

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