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Market Update

It's Only the Early Innings for Cloud Computing

If you think the opportunities to invest in cloud computing have come and gone, think again.

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You may think that most companies would have moved all their business processes to the cloud by now, especially with so many studies showing how much cheaper and more efficient cloud computing technology can be. In reality, though, the majority of enterprises are still using clunky servers stored on-site or software once installed off a CD-ROM. In a recent white paper, Morningstar estimated that just 20% to 25% of virtualized infrastructure is running in a public cloud environment.

That's likely to change. All three main types of cloud computing markets--software as a service (programs people use), infrastructure as a service (virtual server space), and platform as a service (a virtual environment where companies can test their own apps and programs)--are expected to grow exponentially over the next few years.

Bryan Borzykowski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.