Cloud storage technology is a relatively simple concept. We can compare it to physical storage units. An entrepreneur usually buys a space and constructs a group of storage units. Persons who have excess “stuff” will rent a unit away from their premises. The same concept is used in Cloud Storage. IT companies have purchased a series of servers capable of storing huge amounts of data. Companies are finding that their own local servers are not adequate to store all their files and documents. They either rent or buy storage space from Cloud Storage companies. Cloud storage has increased 57% from 21% in 2010. Global data center IP traffic is expected to increase 33% by 2015. The industry has spawned a variety of support companies that provide the hardware and software for Cloud Storage. Intel (INTC) provides the chips for Cisco servers. Cisco then provides the servers to cloud storage companies.. Seagate Technology (STX) has a 42% global share of the disk drive market for cloud storage. Palo Alto Networks (PANN) produces a suite of products for the security of cloud storage centers.
The leaders in cloud storage technology include the following:
EMC (EMC) Recent price $25.49 52 week high/low is $27.24/$21.45 ESP is $1.45 PE Ratio is 18.08 Dividend $.40 Market Cap is $53.04 B. EMC designs, manufacturers and supports hardware and software and provides services for storage, manufacturing, protection and sharing of electronic information. (Barcharts.com) EMC has 25% of market share and has shown a 37% sales growth year on year.
Vmware (VMW) Recent price $94.94 52 week high/low is $101.52/$64.56 EPS is $2.23 PE ratio is 43.81 Market Cap is $40.73 B Vmware provides solutions and programs for a network and operating system all at once. The company allows enterprises to build their own clouds. High profile users include Verizon, Southwest Airlines and NYSE Euronet.
Rackspace Hosting (RAX) Recent price $37.13 52 week high/low is $79.95/$32.62 ESP is $.67 PE ratio is 55.82 Market Cap is $5.16 B Rackspace is the world’s leader and specialist in hosting. The company delivers computing as a service and utilizes the best technologies to provide a flexible service, making it more reliable and affordable. High Profile users include Kraft Foods, Under Armor and Vodophone.
Salesforce.Com Inc. (CRM) Recent price $58.40 52 week high/low is $61.45/$36.09 EPS $.28 Market Cap $34.81 B. Salesforce provides a suite of on demand CRM applications that allow customers to manage, and share all of their sales, support, marketing and partner information on demand. High profile users include HP, Time Warner Cable and TWC.
Akamai Technology (AKAM) Recent price $48.34 52 week high/low is $53.61/$32.63 EPS is $1.57 PE ratio is 31..60 Market Cap is $8.61 B. Akamai is a global leader and service provider for accelerating content and business processes online. It has 125,000 servers in 70 countries and has 15% to 20% of web traffic each day. Customers include 90% of the top 10 retailers. Sales growth has been 20% year on year.
Amazon (AMZN) Recent price is $387.60 52 week high/low is $408.06/$245.75 EPS is $.28 PE ratio in 1,428.11 Market Cap is $177.09 B Amazon has entered the cloud storage arena by providing a pay-as-you-go storage platform.
This discussion is neither a recommendation to buy nor to sell any of the above securities. You must always do your own diligent research.