My point about this article is not to buy Amazon, but that the use of cloud technology will be greatly expanding for companies over the short- and long-term. Cloud technologies, whether they are for infrastructure, software, platform, etc., have many benefits for corporations.
Cloud technologies are asset light. What that means is that a company does not have to buy the underlying computer assets (e.g., Wintel, big Unix boxes, mainframes, switches, routers, perpetual software licenses, etc.) that run the technology solutions. If they don't have to buy them, they don't have to put it on their balance sheet and pay depreciation expense over the useful life of the assets. Cloud services are usually priced as a subscription or pay as you use or pay as you go.
Another advantage to cloud technologies, is that you can get capacity on demand. Without utilizing the cloud technology, a company has to buy more assets than what they need as they forecast initial needs and anticipated growth. This can be very expensive, especially if you over-forecast demand. With cloud, you can time your expense with you rising or falling demand for the cloud technology. There are other advantages too, but I wanted to highlight a couple of big ones.
Why did I post this article then? These are the type of trends, that if you can train yourself to spot them, can help with your investment strategies. I call this "connecting the dots."
Sean Hyman is very, very good at connecting the dots and sifting through what is hype and what is real. Most of us are very busy and we don't have time to read several hours a day. I rely on my good friend, Sean, to help me stay current on what's going on and what trends are occurring that I can take advantage of in my investment portfolio. He has led me to several investment opportunities that I would have missed either due to lack of knowledge or lack of time.