7 Cloud Computing Stocks You Should Own

You have seen those commercials on television, in which families are graphically improving family photos and using cloud computing to extract saved photos and photo software to do the task. You have been wondering what cloud computing is. It is as simple as electricity flowing through the lines to your home, and in fact can be viewed as a utility in a sense. Large internet companies are increasing their cyber capacities to allow individuals and businesses to tap into their resources for computer tasks that would ordinarily take up the limited space on computer hard drives and memory banks. Essentially, when you “go to the cloud” you are invisibly accessing these cyberspace storage, software and files to use for your daily computing tasks. These cloud resources are not housed in your own computer, but are out there, “in the clouds”. You are charged only for the use you make of this cloud, just as you are charged for the electricity you use. It is a cost effective way to have access to software and programs that if purchased and installed on your computer would be a very high cost.

The seven major companies that are now expanding their cloud computing include F5 Network, SalesForce.com, VMware, Google, Amazon, Oracle and Microsoft. These seven companies are targeting growth in the cloud computing arena now. They are making deals with one another, and with smaller companies, that will boost cloud capacity and availability to all levels of society. Such a drive for growth means that the share prices of these companies will grow tremendously. In short, these companies are assuming the nature of utility companies, selling cloud computing resources.

F5 Networks has released its ARX Cloud Extender, along with the ARX Virtual Edition and Open Storage Management which is called API iControl. These features will make it possible for cloud users to have extended and accelerated automatic file storage with anytime access to program resources. F5 Networks is but one of many cloud computing stocks to invest in for rapidly rising gains.

A second company in the cloud computing stocks world is Salesforce. Salesforce CEO Marc Benioff had a light bulb moment some time ago when he realized that buying pricey software to install on family and business computers was not the best way to provide for computing needs. Instead, he envisioned giving access to the software resources of large internet companies so that the costs of software would no longer be necessary. Instead, the programs would be available in the “cloud”, or cyberspace of the large companies such as Salesforce, and could be tapped into with no interruptions and invisible connectivity that would be on a pay for use basis. Salesforce got the jump on Microsoft and Google in this cloud concept and is now realizing share price gains that are greater than that seen even by Google. In the world of cloud computing stocks, Salesforce is indeed a powerful force.

Yet another contender for gains in the realm of cloud computing stocks is VMware. VMware presented its Virtual Data Center Operating System, “VDC-OS” in early 2009, via increased computer banks linked in a network that lets computer users hook into their software and storage resources instead of paying for hard drive installed programs. Tod Nielsen, VMware’s CEO, has created what he calls an ecosystem of storage and software functionality for users to access. The company’s 2009 performance outshone the broader market.

Google, Amazon, Oracle, and Microsoft are not about to let F5 Network, Salesforce, and VMware keep an edge in the cloud computing world. As share prices of these upstarts have soared, Google and Microsoft just finalized cloud computing deals with the General Services Administration and the Department of Agriculture, respectively. These two agreements will allow all the employees of these two governmental agencies to use the clouds created by Google and Microsoft. With such new contracts, investors can expect to see the shares of these companies climb in the coming years. Amazon and Oracle are cloud players not to be left behind: Amazon has launched its Amazon Web Services (AWS), and Oracle has teamed with Amazon to infuse its software resources into Amazon’s cloud. With continued associations like this, these seven companies filling the sky with clouds will rain down profits for investors in cloud computing stocks.

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