The 3 Best Cloud Computing Stocks to Buy in February 2024 – InvestorPlace

These cloud computing stocks can march higher in 2024

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Cloud computing has helped corporations increase productivity and reduce costs. Once a business uses cloud computing, it continues to pay annual fees to keep its digital infrastructure.

Cloud solutions can quickly turn into a companys backbone. Its one of the last costs some companies will think of removing. Firms that operate in the cloud computing industry often benefit from high renewal rates, recurring revenue and the ability to raise prices in the future. Investors can capitalize on the trend with these cloud computing stocks.

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Amazon (NASDAQ:AMZN) had a record-breaking Black Friday and optimized its logistics to offer the fastest delivery speeds ever for Amazon Prime members. Over seven billion products arrived at peoples doors on the same or the next day or the order. Its a testament to Amazons vast same-day delivery network that encompasses 110 U.S. metro areas and more than 55 dedicated same-day sites across the United States.

The delivery network makes Amazon Prime more enticing for current members and people on the fence. The companys efforts paid off and resulted in 14% year-over-year (YoY) revenue growth in the fourth quarter of 2023.

Amazons ventures into artificial intelligence (AI) can also lead to meaningful stock appreciation. The companys generative AI investments have paid off and strengthened Amazon Web Services value proposition. Developers can easilyscale AI appswith Amazons Bedrock. These resources can help corporations increase productivity and generate more sales.

Innovations like these will help Amazon generate more traction for its e-commerce and cloud computing segments. The AI sector has many tailwinds that can help Amazon stock march higher for long-term investors.

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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is a staple in many funds. The equity has outperformed the broader market with a 58% gain over the past year. Shares are up by 170% over the past five years.

Shares trade at a reasonable 22x forward P/E ratio. The stock initially lost some value after earnings but has parried some of its losses. The earnings report wasnt too bad, with 13% YoY revenue growth and 52% YoY net income growth.

Investors may have wanted higher numbers since Meta Platforms (NASDAQ:META) reported better results. However, a 7% drop in earnings didnt make much sense. The business model is still robust and is accelerating revenue and earnings growth. Alphabet also has a lengthy history of rewarding long-term investors.

Many analysts believe the equity looks like a solid long-term buy. The average price target implies a 9% upside. The highest price target of $175 per share suggests the equity can rally 16.5% from current levels.

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ServiceNow (NYSE:NOW) is an information technology company with an advanced cloud platform that helps corporations increase their productivity and sales. The equity has comfortably outperformed the market with 1-year and 5-year gains of 77% and 248%, respectively.

The company currently trades at a 61x forward P/E ratio, meaning youll need a long-term outlook to justify the valuation. ServiceNow certainly delivers on the financial front, increasing revenue by 26% YoY in Q4 2023. ServiceNow also reported $295 million in GAAP net income, a 97% YoY improvement. The company generated $150 million in GAAP net income during the same period last year.

Revenue is going up, and profit margins are accelerating. These are two promising signs for a company that boasts a 99% renewal rate for its core product. The companys subscription revenue continues to grow at a fast clip and generates predictable annual recurring revenue.

On this date of publication, Marc Guberti held a long position in NOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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The 3 Best Cloud Computing Stocks to Buy in February 2024 - InvestorPlace

Cloud Computing Security Start with a ‘North Star’ – ITPro Today

Cloud computing has followed a similar journey to other introductions of popular technology: Adopt first, secure later. Cloud transformation has largely been enabled by IT functions at the request of the business, with security functions often taking a backseat. In some organizations, this has been due to politics and blind faith in the cloud services providers (CSPs), e.g., AWS, Microsoft, and GCP.

In others, it has been because security functions only knew and understood on-premises deployments and simply didn't have the knowledge and capability to securely adapt to cloud or hybrid architectures and translate policies and processes to the cloud. For lucky organizations, this has only led to stalled migrations while the security and IT organizations played catch up. For unlucky organizations, this has led to breaches, business disruption, and loss of data.

Related: What Is Cloud Security?

Cloud security can be complex. However, more often than not, it is ridiculously simple the misconfigured S3 bucket being a prime example. It reached a point where malefactors could simply look for misconfigured S3 buckets to steal data; no need to launch an actual attack.

It's time for organizations take a step back and improve cloud security, and the best way to do this is to put security at the core of cloud transformations, rather than adopting the technology first and asking security questions later. Here are four steps to course correct and implement a security-centric cloud strategy:

Related: Cloud Computing Predictions 2024: What to Expect From FinOps, AI

For multi-cloud users, there is one other aspect of cloud security to consider. Most CSPs are separate businesses, and their services don't work with other CSPs. So, rather than functioning like internet service providers (ISPs) where one provider lets you access the entire internet, not just the sites that the ISP owns CSPs operate in silos, with limited interoperability with their counterparts (e.g., AWS can't manage Azure workloads, security, and services, and vice versa). This is problematic for customers because, once more than one cloud provider is added to the infrastructure, the efficacy in managing cloud operations and cloud security starts to diminish rapidly. Each time another CSP is added to an organization's environment, their attack surface grows exponentially, unless secured appropriately.

It's up to each company to take steps to become more secure in multi-cloud environments. In addition to developing and executing a strong security strategy, they also must consider using third-party applications and platforms such as cloud-native application protection platforms (CNAPPs), cloud security posture management (CSPM), infrastructure as code (IaC), and secrets management to provide the connective tissue between CSPs in hybrid or multi-cloud environments. Taking this vital step will increase security visibility, posture management, and operational efficiency to ensure the security and business results outlined at the start of the cloud security journey.

It should be noted that a cloud security strategy like any other form of security needs to be a "living" plan. The threat landscape and business needs change so fast that what is helpful today may not be helpful tomorrow. To stay in step with your organization's desired state of security, periodically revisit cloud security strategies to understand if they are delivering the desired benefits and make adjustments when they are not.

Cloud computing has transformed organizations of all types. Adopting a strategy for securing this new environment will not only allow security to catch up to technology adoption, it will also dramatically improve the ROI of cloud computing.

Ed Lewis is Secure Cloud Transformation Leader at Optiv.

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Cloud Computing Security Start with a 'North Star' - ITPro Today

The Future of Cloud Computing in Business Operations – Data Science Central

The digital era has witnessed the remarkable evolution of cloud computing, transforming it into a cornerstone of modern business operations. This technology, which began as a simple concept of centralized data storage, has now evolved into a complex and dynamic ecosystem, enabling businesses to operate more efficiently and effectively than ever before. The Future of Cloud Computing holds unparalleled potential, promising to revolutionize the way companies operate, innovate, and compete in the global market.

Cloud computing refers to the delivery of various services over the Internet, including data storage, servers, databases, networking, and software. Rather than owning their computing infrastructure or data centers, companies can rent access to anything from applications to storage from a cloud service provider.

Cloud computing has revolutionized the way businesses operate, offering a plethora of advantages that enhance efficiency, flexibility, and scalability. In this discussion, well delve into the key benefits of cloud computing, explaining each in simple terms and underlining their significance in todays business landscape.

Cloud computing significantly cuts down on the capital cost associated with purchasing hardware and software, especially in sectors like the healthcare industry. Its an economical alternative to owning and maintaining extensive IT infrastructure, allowing businesses, including those in the healthcare sector, to save on setup and maintenance costs. This aspect is particularly beneficial in cloud computing in healthcare industry, where resources can instead be allocated toward patient care and medical research.

The ability to scale resources elastically with cloud computing is akin to having a flexible and adaptable IT infrastructure. Businesses can efficiently scale up or down their IT resources based on current demand, ensuring optimal utilization and avoiding wastage.

Cloud services are hosted on a network of secure, high-performance data centers globally, offering superior performance over traditional single corporate data centers. This global network ensures reduced latency, better application performance, and economies of scale.

Cloud computing facilitates a swift and agile business environment. Companies can quickly roll out new applications or resources, empowering them to respond swiftly to market changes and opportunities.

The efficiency and speed offered by cloud computing translate into enhanced productivity. Reduced network latency ensures applications and services run smoothly, enabling teams to achieve more in less time.

Cloud computing enhances collaboration by enabling team members to share and work on data and files simultaneously from any location. This virtual collaboration space is crucial for businesses with remote teams and global operations.

Here, we explore the transformative role of cloud computing in business, focusing on 7 key points that forecast its future impact and potential in streamlining and innovating operational landscapes.

In the Future of Cloud Computing, handling enormous amounts of data will become more critical than ever. Businesses of all sizes generate data at unprecedented rates. From customer interactions to transaction records, every piece of data is a potential goldmine of insights. Cloud computing steps in as the ideal solution to manage this surge efficiently.

Cloud storage provides a scalable and flexible way to store and access vast datasets. As we move forward, cloud providers will likely offer more tailored storage solutions, catering to different business needs. Whether its for high-frequency access or long-term archiving, cloud storage can adapt to various requirements.

Another significant aspect of data management in the Future of Cloud Computing is real-time data processing. Businesses will rely on cloud computing not just for storage, but also for the immediate processing and analysis of data. This capability allows for quicker decision-making, a crucial factor in maintaining a competitive edge.

One of the most transformative impacts of cloud computing is its ability to transcend geographical boundaries. In the Future of Cloud Computing, remote and global teams can collaborate as if they were in the same room. Cloud-based tools and platforms allow team members from different parts of the world to work on projects simultaneously, share files instantaneously, and communicate in real-time.

In the Future of Cloud Computing, we can expect a rise in virtual workspaces. These digital environments simulate physical offices, providing a space where remote workers can feel connected and engaged. They offer features like virtual meeting rooms, shared digital whiteboards, and social areas, replicating the office experience in a digital realm.

Cloud computing does more than just streamline operations; it also opens doors to innovation. With cloud resources, businesses can experiment with new ideas without significant upfront investment in infrastructure. This flexibility encourages creativity and risk-taking, which are essential for innovation.

Cloud computing accelerates the product development cycle. Teams can quickly set up and dismantle test environments, prototype more efficiently, and bring products to market faster. This agility gives businesses a significant advantage in rapidly evolving markets.

The landscape of cloud computing is rapidly evolving, with new trends constantly emerging to redefine how businesses leverage this technology. In the context of the future of cloud computing, 3 key trends stand out for their potential to significantly shape the industry. Understanding these trends is crucial for businesses looking to stay competitive and innovative.

Artificial Intelligence (AI) and Machine Learning (ML) are becoming increasingly integral to cloud computing. This integration is revolutionizing how cloud services are delivered and utilized. AI algorithms are enhancing the efficiency of cloud platforms, offering smarter data analytics, automating routine tasks, and providing more personalized user experiences. For instance, cloud-based AI services can analyze vast amounts of data to predict market trends, customer behavior, or potential system failures, offering invaluable insights for businesses.

This integration not only boosts the performance and scalability of cloud solutions but also opens up new avenues for innovation across various sectors.

As cloud computing becomes more prevalent, the focus on security and compliance is intensifying. The increasing frequency and sophistication of cyber threats make robust cloud security a top priority for businesses. In response, cloud service providers are investing heavily in advanced security measures, such as enhanced encryption techniques, identity and access management (IAM), and AI-powered threat detection systems.

Furthermore, with regulations like GDPR and CCPA in place, compliance has become a critical aspect of cloud services. The future of cloud computing will likely witness a surge in cloud solutions that are not only secure but also compliant with various global and industry-specific regulations. This trend ensures that businesses can confidently and safely leverage the cloud while adhering to legal and ethical standards.

Sustainability is a growing concern in the tech world, and cloud computing is no exception. There is an increasing trend towards green cloud computing, focusing on reducing the environmental impact of cloud services. This involves optimizing data centers for energy efficiency, using renewable energy sources, and implementing more sustainable operational practices.

It will likely see a stronger emphasis on sustainability as businesses and consumers become more environmentally conscious. Cloud providers who prioritize and implement eco-friendly practices will not only contribute to a healthier planet but also appeal to a growing segment of environmentally-aware customers.

The future of cloud computing is bright and offers a plethora of opportunities for businesses to grow and evolve. By staying informed and adapting to these changes, companies can leverage cloud computing to gain a competitive edge in the market.

Remember, the future of cloud computing isnt just about technology; its about how businesses can harness this technology to drive innovation, efficiency, and growth.

For businesses aiming to thrive in the ever-changing digital world, embracing the advancements in cloud computing is not just a choice but a necessity. Staying updated and adaptable will be key to harnessing the power of cloud computing for business success in the years to come.

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The Future of Cloud Computing in Business Operations - Data Science Central

Beyond Cloud Nine: 3 Cutting-Edge Tech Stocks Shaping the Future of Computing – InvestorPlace

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Cloud computing has helped millions of companies save time and money. Businesses dont have to worry about hardware costs and can access data quickly. Also, cloud computing companies offer cybersecurity resources to keep data safe from hackers.

Many stocks in the sector have outperformed the market over several years and can generate more gains in the years ahead. Therefore, these cutting-edge tech stocks look poised to expand and shape the future of cloud computing.

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ServiceNow(NYSE:NOW) boasts a high retention rate for its software and continues to attract customers with deep pockets. The company has over 7,700 customers and almost 2,000 of them haveannual contract values that exceed $1 million.

Further, NOWs remaining performance obligations are more than triple the companys Q3 revenue. The platform allows businesses to runmore efficient help desksand streamline repetitive tasks with built-in chatbots. Also, ServiceNow offers high-level security to protect sensitive data.

Additionally, the company has been a reliable pick for investors who want to outperform the market. Shares are up by 74% over the past year and have gained 284% over the past five years. The stock is trading at a 58-forward P/E ratio. The companys net income growth can lead to a better valuation in the future. And, ServiceNow more than tripled its profits year over year (YOY) in thethird quarter. Revenue grew at a nice 25% clip YOY.

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Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL) makes most of its revenue from advertising and cloud computing. Google Cloud has become a popular resource for business owners, boasting over 500,000 customers. Also, Alphabet stands at the forefront of AI , enhancing the tech giants future product offerings.

Notably, the companys cloud segment remains a leading growth driver. Revenue for Google Cloud increased by 22.5% YOY in thethird quarter. And, Alphabets entire business achieved 11% YOY revenue growth, which is an acceleration from the previous period.

Also, Google Cloud reported a profitable quarter, swinging from a $440 million net loss in Q3 2022 to $266 million net income in Q3 2023. Alphabet investors positive response to the news helped the stock rally by 57% over the past year. The stock has gained 163% over the past five years.

Alphabet currently trades at a 22-forward P/E ratio and has a $1.8 trillion market cap. Finally, the companys vast advertising network gives them plenty of capital to reinvest in Google Cloud and the companys smaller business segments.

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Datadog(NASDAQ:DDOG) helps companies improve their cybersecurity across multiple cloud computing solutions. Cloud spending is still in its early innings and is expected to reach$1 trillion in annual spending in 2026. The company is projected to have a $62 billion total addressable market (TAM) in that year.

Specifically, Datadog removes silos and friction associated with keeping cloud applications safe from hackers. Over 26,000 customers use Datadogs software including approximately 3,130 customers with annual contract values exceeding $100,000. The companys revenue growth over the trailing twelve months is currently 31%. Further, operating margins have improved significantly to help the company secure a net profit in the third quarter.

In fact, DDOG has a good relationship with many cloud computing giants, including Alphabet. The two corporationsexpanded their partnership to close out 2023.

Investors have been rushing to accumulate Datadog stock in recent years. Shares have gained 68% over the past year and are up by 240% over the past five years. DDOG is still more than 35% removed from its all-time high. However, continued revenue growth and profit margin expansion can help the stock reclaim its all-time high.

On this date of publication, Marc Guberti held a long position in NOW. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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Beyond Cloud Nine: 3 Cutting-Edge Tech Stocks Shaping the Future of Computing - InvestorPlace