Cloud Technology Monthly Report | December

Cloud Technology ETF Monthly Report: Key Takeaways

• By 2025 >95% of new digital workloads deployed on Cloud, up from 30% in 2021. [1]

• Market growth of 16% expected in 2022 – hitting almost $500bn. [2]

• Ongoing pandemic & surge in digital WFH - making cloud centrepiece of new digital experiences. [3]

• Over 85% of enterprises to embrace Cloud by 2025. Can't fully execute their digital strategies without Cloud-native tech/platforms. [4]

• Gartner forecasts end-user spending on public cloud services to reach $396bn in 2021 and grow 21.7% in 2022. [5]

• Best monthly performers – Extreme Networks (up 37.3%), Vonage (27.9%), Nvidia (27.8%), Arista Networks (21.1%), Pure Storage (15.3%), Beijing Sinnet Tech (12.4%), Apple (10.5%) and Zscaler (8.8%). [6]

• For 2021 largest contributors – includes Alphabet, Microsoft, Nvidia, Fortinet, Oracle, Dell, Datadog, Cisco, Palo Alton Networks, Intel and Vonage (see Table on next page).

• SKYY’s 75 equal weighted 75 holdings – broadly reflect the Global Cloud industry with SaaS holdings (Software as a Service) now largest weighting followed by PaaS and IaaS. [7]

• Globally diversified - US exposure 72.3%, China 10.7%, Japan 4.3%, Israel 4.4% and Germany 2.5%. [8]

Please note that all performance figures are showing net data. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product.

Macro Outlook

• Total Global Cloud computing market size is expected to reach $1.3 trillion by 2028 - annualized growth rate (CAGR) of 19.1%. [9]

• Cloud’s fast annualized growth – due to faster 5G and wireless services, allowing for wider adoption. [10]

• Multi-cloud (hybrid) platforms are helping more businesses scale up faster – including in heavily regulated areas such as US banks that were slow adopters (Wells Fargo and Morgan Stanley both signed large Cloud deals recently.) [11]

• Cloud security firms are benefiting from increased spending in response to the growing number of hacking and cybersecurity attacks. [12]

• IaaS segment likely to enjoy highest CAGR over next few years - increased adoption of multi-cloud/hybrid benefits, adds scalability and fast data accessibility. [13]

• Small & Medium Enterprises (SMEs) to emerge as fastest-growing area through 2028 - high demand due to lower IT hardware and software costs. [14] 

• Public clouds expected to grow more dominant – leaders Amazon Web Services, Microsoft Azure, and Google cementing dominance. [15]

• Enterprise cloud spending, both public and private, increased 34.4% from a year previous, while non-cloud IT spending declined by eight percent. [16]

• Revenue growth to remain explosive through mid-decade, according to Deloitte’s projections, never dipping below 30 percent annually. Global cloud spending will grow seven times faster than overall IT spending through this period. IDC forecasts that worldwide spending on public cloud services and infrastructure will nearly double, to around $500 billion, by 2023. [17]

For 2021, the leading contributors for our Cloud Technology ETF are shown below:

For illustrative purposes only. Please note that all performance figures are showing net data.

Cloud Technology ETF Performance (As of 30.11.21)

Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product.
Source: Bloomberg / HANetf. Data as of 30/11/2021.Please note that all performance figures are showing net data. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product.

Learn more about our Cloud Technology ETF

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