Best investment in the cloud space
We’ve discussed the strategy and acquisitions Amazon (AMZN) might adopt to stay competitive in the cloud space. In the middle of April 2018, Morgan Stanley (MS) said in a research note reported by Bloomberg that the next computing cycle will be centered on data.
The research company said, “The dawning data-centered computing cycle can double incremental enterprise technology investment over the next 10 years and speed broader productivity growth for the first time in 20 years.”
Semiconductor, network providers, and cloud players—in that order
In this computing cycle, several new technologies such as IoT (Internet of Things), AI (artificial intelligence), automation, and VR (virtual reality) have emerged simultaneously.
According to Bloomberg, these data technologies could facilitate “$1.6 trillion in incremental IT investment in 10 years, more than double the $740 billion on average that was added in each of the previous three cycles.”
The semiconductor sector has already begun to benefit from the latest computing cycle. Next, infrastructure providers are expected to excel, followed by cloud providers such as Amazon, Microsoft (MSFT), IBM (IBM), and Alibaba (BABA). All these cloud providers are increasingly investing in AI, machine learning, IoT, and AR/VR (augmented and virtual reality) at various levels.