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Why are we doubling the amount invested in the cloud

Wearing a mask can be as common as owning a phone; telework, Telefone, and online education will be a standard rather than a contingency plan; and for the global economy, the cloud will transform the basic infrastructure of businesses and entire industries.

   COVID-19 is a turning point for the founders of cloud and cloud companies. For its computing power and as a software distribution model, the cloud has been considered a solution to the many challenges businesses face during times of recession and economic recovery. now on. Not only is the cloud industry able to recover faster than other industries, but the cloud model also offers businesses a promising future in an age of social alienation and more.

   We believe that once founders find shelter in the cloud, they will never return.
   The resilience of the cloud in the context of historical volatility over the past decade, there has been a dramatic shift in the market from on-premises to cloud, as 94% of businesses use at least one cloud service today. 2020 has been an important year for the cloud industry, as the total interest revenue of SaaS and IaaS has surpassed $ 100 billion, and BVP Nasdaq’s emerging cloud market index (^ EMCLOUD) crossed the $ 1 trillion mark in early February. However, for a few days, when the COVID-19 pandemic spread, fear ripped the financial market.
   In early March, public markets experienced the strongest crash in history with the volatility we’ve seen since the Great Depression. The cloud index market cap dropped to ~ $ 750 million and the cloud multiples returned to near their historical average of ~ 7 times while the VIX volatility index soared in the mid-1980s. both were at global highs in February 2020, ^ EMCLOUD and S&P 500 were trading about 35% in mid-March. However, over the next two months, ^ EMCLOUD recovered those losses, taking them to an all-time high on May 7.
   The cloud index has continued to increase since then, and by the end of May 11, the market capitalization was over $ 1.2 trillion and returned to the multiplier with a transitional turnover rate 12 times higher from 2019. Similar to Adobe 2012, we expect more businesses to move to the cloud model and the index will continue to expand. As we predicted this year, Bang State of the Cloud 2020, by 2025, we expect the cloud to penetrate 50% of enterprise software.

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