Cloud Capital: SAP's Cloud Lust, Equinix's Data Center Love + CLOU's Desire to be Antithetic
In today's episode of "Cloud Capital", SAP ushers in a "new era" in the way consumers and enterprises interact, Equinix extends the "digital edge", and we also find out why the ETF CLOU is so hot.
In our top story, "Smart, Simple and Secure" is the unofficial alliterative slogan for SAP's HANA and SAP Cloud Platform. But what's the company's underlying ambition? In a nutshell it might be transporting the HANA database to the cloud where it can acts as a single gateway to address the challenges of distributed data landscapes.
In other words, the goal for SAP's Platform is to provide customers access to all SAP and third-party application data, reduce data duplication and offer a single point for security and governance.
"The combination of the in-memory technology of HANA with data virtualization results in simplicity for data consumers and flexibility for data management" said the company. "(Our)
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On-premise customers of HANA could also benefit from the new cloud services as they could flexibly add capacity as needed.
SAP's Cloud Platform is evolving into a business technology platform, enabling customers to easily extend and integrate SAP applications with differentiating capabilities.
"Decision-makers can easily apply advanced analytics, machine learning and other techniques to business processes to uncover new opportunities"
Ticker Symbol (SAP), the stock ended the week at $125.75, or around 3.4% off its 52-week high.
In other news, datacenter facilities offer companies the ability to interconnect with an extensive ecosystem of network and cloud providers. This can provide enterprises with distinctive strategic advantages in their markets.
At least that is the mantra at Equinix (EQIX), who plans to open 12 new International Business Exchange data centers and expand 23 existing IBX data centers this year.
"Connectivity is critical for the development of modern distributed, hybrid, multi-cloud environments"
As digital transformations reshape virtually every industry across the globe, companies are thinking differently about how they interact with every element of their supply chain, and a clear architecture of choice is emerging – one that is cloud-first, distributed and hybrid.
By providing new capacity in 2019, Equinix continues to extend Platform Equinix, further enabling companies to deploy their IT infrastructure and services at the digital edge in more than 50 metros across the globe.
The stock ended the week at $479.82, up 1.6% for the week.
Meanwhile, a great blurb posted on ETF dot com by Lara Crigger forwarded an explanation for why Global X Cloud Computing ETF (CLOU) is already up to $108 million in assets in less than a month of trading.
Now by itself, an ETF getting hot isn't news. Here's the hook: consider over the same period, CLOU's main competitors, the $2.3 billion First Trust Cloud Computing ETF (SKYY) has taken in roughly half as much. And a third cloud computing ETF, the $2.7 million Tortoise Cloud Infrastructure ETF (TCLD), has attracted no additional net inflows beyond seed since its launch in January.
The reason, Crigger says, is that CLOU's portfolio is "radically" different from TCLD and SKYY's, due to the difference in how each fund defines and weights cloud computing stocks.
"CLOU applies a broad, yet fairly common sense, definition of cloud computing" says the analyst. "It also has a provision where it may hold, on a capped basis, stocks that generate at least $500 million in revenue from public cloud infrastructure."
Essentially, these are the same kinds of companies that SKYY defines as "technology conglomerates,"
"This means that, despite these three ETFs having fairly small portfolios—all three funds hold fewer than 50 names" adds Crigger. "There is surprisingly little overlap in their holdings. A whopping 94% of CLOU's portfolio differs from TCLD, while 95% differs from SKYY.
So there you go… Investors are doing their homework and looking under the hood, and not just blindly investing in thematic funds.
Cloud Capital is produced by The Tech Video Project, and sponsored by RestonLogic, cloud wizards leveraging over 10 years experience helping companies automate, transform and build highly-secure and stable systems. Click over to restonlogic dot com to book your strategy session today.
Disclaimer: The blurbs highlighted on Cloud Capital are available for information purposes only, and don't necessarily reflect opinions of our editors.