Cloud computing is rapidly gaining traction across the globe and is a bright highlight of modern technology. It’s allowed businesses and consumers to achieve digital feats that previously felt impossible.

Simply put, cloud computing has already started to shake the world. So, what exactly is cloud computing?

Cloud computing is the delivery of computing services – including servers, storage, databases, networking, software, analytics, and intelligence – over the internet to offer accelerated innovation, flexible resources, and economies of scale.

There are several reasons why consumers pivot to cloud computing.

First of all, cloud computing completely eliminates the steep cost of buying expensive hardware and software and running on-site datacenters.

Second, the cloud is secure – many providers of cloud computing offer an extensive set of policies, technologies, and controls that strengthens security and protects data, apps, and other infrastructure from threats.

Third, cloud computing is reliable – data backup and other digital storage issues are much easier to navigate and less expensive due to the fact that data can be mirrored at multiple sites.

Finally, the cloud is fast – the majority of cloud computing services are on demand, providing consumers with a higher level of flexibility and taking pressure off capacity planning.

These are just a few reasons why cloud computing is gaining widespread popularity. It’s exciting to think about what companies can accomplish by utilizing this cutting-edge technology moving forward.

Salesforce Inc. Quarterly Results

A giant in the cloud space, Salesforce

CRM

, reported quarterly results earlier this week, and the market reacted very positively to the release. Following the report, shares surged nearly 10% the day after, and today, shares tacked on another 7%.

Looking at the report, quarterly EPS of $0.98 was more than enough to exceed expectations, penciling in a 5.4% bottom-line beat. The top-line showed strength as well, as CRM reported sales of $7.4 billion – marginally beating the Zacks Consensus Sales Estimate by 0.5%.

The company has been no stranger to EPS beats, chaining together a more-than-impressive streak of 20 straight bottom-line beats dating back to 2017.

Revenue of $7.4 billion pegged a 24% increase in the top-line from the year-ago quarter, and CRM initiated Q2 FY23 revenue guidance of $7.69 – $7.70 billion. In addition, operating cash flow came in at $3.7 billion, a sizable 14% year-over-year increase.

Cloud results were robust. The company’s Sales Cloud continued to accelerate, surpassing $1.6 billion in the reported quarter, an 18% year-over-year increase.

CRM’s Service Cloud grew 17% year-over-year to $1.8 billion in revenue in the quarter. Together, Commerce Cloud and Marketing Cloud grew 22% year-over-year for the reported quarter.

Additionally, the company’s data clouds grew 15% year-over-year.

The company highlighted its success with DoorDash

DASH

, stating that the company fulfilled more than 400 million orders in the last quarter alone. DASH turned to Salesforce to improve the customer experience and respond to issues in real-time for its hundreds of thousands of merchants, customers, and d

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.

Simply put, it was an excellent quarter for the company, and it shows just how quickly cloud computing has been growing.

Two other companies with cloud computing operations worth highlighting include Alphabet (GOOGL) and Microsoft (MSFT).

Google Cloud

Alphabet

GOOGL

company sports a robust cloud computing segment, aiding substantial revenue growth and has been a major key catalyst. The company’s cloud offerings include Google Cloud Platform and Google Workspace, which are continuously gaining momentum in the booming cloud computing market.

Currently, Google Cloud has 29 cloud regions and 88 availability zones.

Google Cloud raked in $6.4 billion in revenue in its latest quarter, displaying a sizable 41% growth from the year-ago quarter. Since FY17, Google Cloud revenue has grown by a massive 375%.

Additionally, the company’s growing number of data centers is assisting the company in expanding its cloud footprint.

Microsoft Azure

Microsoft

MSFT

Azure is the company’s cloud computing service. It’s the only consistent hybrid cloud, delivering unparalleled developer productivity and comprehensive, multilayered security. Azure is available in more than 60 regions globally.

Microsoft’s Azure cloud platform paved the way for a strong performance in its latest quarterly report. Since 2017, Microsoft’s cloud revenue has climbed by a sizable 119%.

It reported better-than-expected commercial booking growth of 28%, and Azure Cloud revenue was $23.4 billion, up 32% year-over-year. Additionally, MSFT believes that cloud technology will be a critical growth driver of the world’s economic output and will further boost its top line in the future.

Bottom Line

Cloud computing has quickly become a part of today’s modern world, and it seems that it is the future of the digital world.

CRM’s strong quarterly report revealed how highly consumers rank cloud computing. Additionally, GOOGL and MSFT have also enjoyed robust growth across their respective cloud platforms.

It’s an exciting technology that anybody can celebrate, and companies with these operations, such as CRM, MSFT, and GOOGL, will undoubtedly reap the rewards of this industry for years to come.

Investors can’t miss the boat on this wave.

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