Will the Government’s Financial Support for Cloud Computing Help Investors in the Technology?

While the infrastructure bill President Biden is stomping to gather support for is not likely to pass in its current form, it is clear that there will be an infrastructure bill that passes. When a modified bill reaches his desk to sign, it will include projects that the administration believes are important to the country. When we think of infrastructure, we tend to think of roads, bridges, and railways. But this is 2021 and investing in infrastructure also includes improving the three Cs, communication, connectivity, and cloud services.

During the pandemic last year, it became highly apparent how important the three Cs are to our daily lives. And now it’s easy to recognize the increasing importance in our daily work, play, backup storage, and personal gathering of information. While infrastructure improvements in telecommunications and connectivity are understood by most, the cloud is a bit harder to wrap our minds around. The technology is only finding more uses and with high-tech attacks on data and storage needs growing, this area is becoming more exciting to investors as it matures and remains on the national infrastructure list.

Cloud Infrastructure Defined

To understand cloud infrastructure, we can’t skip over cloud computing. According to the National Institute of Standards and Technology website, cloud computing “…enables ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” Put another way; resources are available from everywhere, on-demand on a shared but partitioned, offsite resource.

Cloud infrastructure refers to the hardware and software components of the networks, servers, storage, virtualization software, applications, etc., that support the computing requirements of cloud computing. Cloud infrastructure also includes the abstraction layer that hides the inner workings and logically presents the resource or service to cloud users via app interfaces or another software intermediary. This allows the two to comprehend each other and deliver a usable resource.

In cloud computing, these resources are hosted by a service provider or IT department and are available to users over the internet or through a network. The resources include machines and components, such as servers, memory, network switches, firewalls, load balancers, and storage.

Cloud Infrastructure Components

Investors seeking to benefit from the government’s attention to this area ought to discover the local companies involved in the design and manufacture of the various components, especially those more likely to receive a piece of taxpayers’ money. The cloud infrastructure includes the recognizable back-end hardware elements found within data centers – but on a greater scale. These are multisocket, multicore servers, persistent storage, and local area network equipment, such as switches and routers. U.S. Manufacturers of these components may benefit when a bill passes.

Take-Away

Globally the cloud computing market is projected to reach $791.48 billion by 2028, which has a compound annual growth rate of 17.9%. Specifically, in the U.S., there is a focus and likely funding that adds to the attractiveness of this tech sector. Although where the money will be spread is not certain, a recent executive order by the President shows he believes the big tech companies and other corporate giants have grown too large. Information on smaller U.S.-based companies operating in this sector are available on Channelchek along with company descriptions, data, and in the case of Digitech (DGTI), a newly published analysts report.

Suggested Reading: