The cloudification of the economy is based on a rare and promising configuration. It is the 2nd digital revolution, after the 1st, mainly driven by the GAFAMs. 250 listed companies worldwide operate in the Cloud (median sales: €0.6 bn and median capitalization: €3.7 bn). Clouddification is a theme that stands out for its sustained exposure to hypergrowth:
- 65% of Cloud companies report sales growth in excess of 20%, compared with 16% of Nasdaq companies and 7% of S&P500 companies;
- Cloud companies are creating new markets or taking market share from less digitalized players. Like the GAFAMs, which have posted annual growth in excess of 20% for over 20 years for the oldest companies, the new Cloud players are expected to enjoy sustained strong growth.
Cloud companies base their growth on the SaaS (software as a service) model. This subscription model enables customers to make their technological investments more variable.