The Covid-19 pandemic is a historic event which will bring significant changes and will be studied by various experts for years. It’s the first global event of this scale in modern history and the first real challenge to the way present day societies react and respond to crises together.
And while studying all of this will indeed take years (plus the outbreak is still actually going on), there are some aspects that are important right now, not only in health. One of them is the cloud computing industry. As we’ve said before, the cloud is the hero that kept the Internet afloat while millions of people and businesses had to rely heavily on remote work.
Time to put some extra effort
And while the cloud did its job, now it’s time to thank it. And what better way than by increasing investments in cloud computing? According to investors from Bessamer Venture Partners, right now is the time to double down on cloud investments. Some of the reasons are obvious.
For example, the cloud will need a lot more data centers and better infrastructure to be able to handle the continuous rise in data consumption and traffic. All experts agree that the outbreak had many companies and people discover the benefits of remote work and this will continue to be a hot topic after the pandemic is over. One of the latest examples here is Facebook. Recently Mark Zuckerberg announced that within this decade Facebook will have at least half of its global workforce work remotely permanently.
Zuckerberg says that this will take years as it will require a lot of changes. New remote work tools will have to be developed, there has to be better cybersecurity and of course, IT infrastructure able to handle the load and provide stable, constant service over big distances in real time. As he envisions using a lot of AR and VR for remote meetings, all of this will result in an even bigger strain on the networks.
So, the cloud will need a lot of investments to be able to provide all of this. The good news is that it also means lots of new business opportunities and plenty of innovations. Exactly the ingredients that investors love.
It’s about the money, too
The technology isn’t the only attractive reason for investors in the cloud. The Bessemer Venture Partners investors also say that the cloud has proven to be resilient during volatility periods in financial markets, too. This means that it’s not only a good segment for investments, but it also holds value well.
The BVP Nasdaq Emerging Cloud index already passed $1 trillion in February. During the March stock market crash, it dropped to about $750 billion but it recuperated fast and by May 11 it reached $1.2 trillion – an all-time high. And the expectations are for the rise to continue.
This is a clear sign that investors see the value of cloud computing and actively invest in it. The results will be more money for them, but also better cloud services for everyone.