Despite the recent pandemic-fuelled increases in expenditure on cloud technology, Anthony Ginsberg, Co-creator of the HAN-GINS Cloud Technology UCITS ETF (SKYY) expects cloud spending globally to gain further momentum.
He says this is because of new ‘Work From Home behaviours’, which he sees as lasting, and the fact that Cloud now drives the Internet of Things, elements of Healthcare Innovation such as telemedicine, Future Cars, Cyber Security and Social Media. These themes are increasingly dependent on Cloud.
Ginsberg, Co-creator of the SKYY cloud computing ETF, says: “It is clear COVID has significantly fast-tracked adoption rates of Cloud. We see Cloud now embedded in mainstream work-life activities. We estimate that more than two thirds of global organisations across most industries now use cloud-based systems. We see the highest adoption rates found in manufacturing, healthcare and financial services.
“Cloud is increasingly becoming a utility type service – charging flexible monthly subscription fees. This pay-for-use model will encourage even more enterprises to make the switch away from expensive onsite data centres, which risk becoming increasingly obsolete.
“The flexibility of scaling up services, such as the Disney+ successful new online streaming service and flexible subscription model will ensure this shift accelerates further, away from onsite hardware. Less well known is the large adoption by governments and the public sector in general of various Cloud services, which includes a huge shift by large public health providers and hospitals.”
According to research firm Canalys, Global Cloud spending hit a record high in the 2nd quarter – USD34.6 billion, up 11 per cent over prior quarter, and 30 per cent over same 2019 period. This is reflected in the strong performance of HAN-GINS Cloud Technology ETF (SKYY). In August it posted a gain of 7.94 per cent, for the last 12 months SKYY is up 40.44 per cent. Past performance is no guarantee of future performance. Your capital is at risk.
The leading stocks that contributed to SKYY’s performance in August are Salesforce up 39.93 per cent, Zoom up 28.04 per cent and NVIDIA up 26 per cent in August.
The original article can be found at etfexpress