Category Archives: Cloud Computing

Cognitive Cloud Computing: Enhancing Cybersecurity with AI

In todays digital age, cybersecurity has become a critical concern for businesses, governments, and individuals alike. As the volume and sophistication of cyber threats continue to grow, traditional security measures are no longer sufficient to protect sensitive data and systems. Cognitive cloud computing, which combines the power of artificial intelligence (AI) with the flexibility and scalability of cloud-based infrastructure, offers a promising solution to this pressing challenge.

Cognitive cloud computing refers to the integration of AI technologies, such as machine learning, natural language processing, and computer vision, into cloud computing platforms. This fusion enables the development of intelligent applications and services that can learn from data, adapt to changing conditions, and make informed decisions. In the context of cybersecurity, cognitive cloud computing can be harnessed to enhance threat detection, response, and prevention capabilities.

One of the key advantages of cognitive cloud computing in cybersecurity is its ability to process and analyze vast amounts of data at unprecedented speeds. As cyber threats become more complex and diverse, security analysts are often overwhelmed by the sheer volume of information they need to sift through. AI-powered cognitive systems can quickly and efficiently analyze large datasets, identifying patterns and correlations that may indicate a potential security breach. This not only helps security teams detect threats more quickly but also enables them to prioritize their response efforts based on the severity and likelihood of an attack.

Another significant benefit of cognitive cloud computing is its capacity for continuous learning and adaptation. Traditional security systems rely on predefined rules and signatures to identify threats, which can be easily bypassed by sophisticated attackers using novel techniques. In contrast, AI-driven cognitive systems can learn from past experiences and automatically update their knowledge base to stay ahead of emerging threats. By continually refining their models and algorithms, these systems can detect and respond to new attack vectors that may have gone unnoticed by conventional security tools.

Moreover, cognitive cloud computing can help organizations develop more proactive and resilient cybersecurity strategies. Instead of merely reacting to incidents after they occur, AI-powered systems can predict potential vulnerabilities and recommend appropriate countermeasures. For example, machine learning algorithms can analyze historical data on security incidents to identify trends and common attack patterns. This information can then be used to inform the development of targeted security policies and controls, reducing the likelihood of future breaches.

In addition to enhancing threat detection and prevention capabilities, cognitive cloud computing can also improve the efficiency and effectiveness of cybersecurity operations. By automating routine tasks and streamlining workflows, AI-driven systems can free up valuable time and resources for security analysts to focus on more strategic and complex issues. Furthermore, cognitive systems can facilitate collaboration and information sharing among security teams, helping to break down silos and foster a more unified approach to cybersecurity.

Despite its many advantages, the adoption of cognitive cloud computing in cybersecurity is not without challenges. Issues such as data privacy, algorithmic bias, and the potential for AI-driven systems to be exploited by malicious actors must be carefully considered and addressed. Additionally, organizations must invest in the necessary infrastructure, tools, and skills to support the effective implementation of cognitive cloud computing solutions.

In conclusion, cognitive cloud computing holds significant potential for enhancing cybersecurity in an increasingly interconnected and data-driven world. By harnessing the power of AI, organizations can better detect, respond to, and prevent cyber threats, while also improving the overall efficiency and effectiveness of their security operations. As the technology continues to evolve and mature, it is likely that cognitive cloud computing will play an increasingly central role in the ongoing battle against cybercrime.

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Cognitive Cloud Computing: Enhancing Cybersecurity with AI - CityLife

Over the years, cybersecurity threats have evolved significantly, from simple attacks like viruses and malware to complicated hacking techniques and ransomware attacks. As the cybersecurity landscape becomes more complex, the need for equally advanced defense mechanisms becomes paramount.

However, with rapid technological advancements, there has been a significant rise in innovative solutions that offer unprecedented protection against cyber-attacks. Among these technologies, generative AI and cloud computing stand out as powerful tools that leverage artificial intelligence in enhancing cybersecurity. In this article, we will explore how generative AI and cloud computing can work together in enhancing cybersecurity and offer unparalleled protection.

The integration of generative AI, a subset of artificial intelligence, into the realm of cybersecurity has a ton of potential. One such application can be the generation of realistic honeypots. Honeypots are systems or networks designed to attract attackers, diverting their attention from actual targets. By integrating artificial intelligence into cybersecurity systems, organizations can develop authentic honeypots that mimic real systems or networks, making it harder for attackers to differentiate between real and fake ones.

Moreover, generative AI can help in anomaly detection in cybersecurity. By training artificial intelligence models on large datasets of normal system behavior, organizations can leverage generative AI algorithms to detect anomalies or deviations from expected patterns. These anomalies can serve as indicators of potential cyber-attacks or security breaches. Through real-time monitoring of system behavior, organizations can swiftly identify and respond to any suspicious activities, preventing threats from causing significant damage.

Cloud computing plays a vital role in enhancing cybersecurity by providing scalable and flexible infrastructures to handle the growing volume and complexity of security data. The clouds computational power and storage capabilities are crucial in processing and managing the vast amounts of data generated by security systems.

One of the significant advantages of cloud-based security solutions is the ability to share real-time threat intelligence and collaborate on defense mechanisms. By leveraging the cloud, organizations can aggregate and analyze security data from various sources, such as network logs, endpoint devices, and threat intelligence feeds. This holistic view enables the identification of patterns and correlations that would be challenging to detect with isolated, on-premises security systems. By sharing this threat intelligence across organizations and industries, collective defense strategies can be developed to proactively combat cyber threats.

Furthermore, cloud-based security solutions offer automatic updates and patch management. As cybersecurity threats constantly evolve, attackers discover new vulnerabilities and exploit them. By utilizing cloud-based security services, organizations can benefit from the expertise and resources of cloud service providers who continuously monitor and update their security systems to defend against emerging threats. This relieves organizations of the burden of manual updates and ensures they remain protected against the latest vulnerabilities.

When combined, generative AI and cloud computing can unleash unprecedented levels of cybersecurity protection. Generative AIs ability to create realistic decoys and detect anomalies, coupled with the scalability and flexibility of cloud computing, empowers organizations to effectively safeguard their sensitive data and systems.

However, it is crucial to acknowledge that the adoption of generative AI and cloud computing for cybersecurity also present new challenges and risks. The creation of realistic decoys using generative AI requires meticulous design and testing to ensure they cannot be distinguished from real systems by attackers. Additionally, the vast amount of security data processed and stored in the cloud raises concerns about data privacy and compliance with data protection regulations. Organizations must implement robust encryption and access control mechanisms to secure their cloud environments and protect sensitive data.

Cybersecurity is a critical concern in our interconnected world. The advancements in generative AI and cloud computing offer ground-breaking solutions to enhance cybersecurity measures. Generative AI enables the creation of realistic decoys and the detection of anomalies, while cloud computing provides scalable infrastructure for handling security data and enables collaborative defense strategies. Although challenges and risks exist, with proper implementation and security measures, the combination of generative AI and cloud computing can lead to unparalleled protection against cyber threats. By leveraging the power of artificial intelligence and the capabilities of the cloud, organizations can fortify their defenses and ensure a safer digital environment for all.

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Enhancing Cybersecurity with Generative AI and Cloud Computing - Analytics Insight

New Jersey, United States,-Mr Accuracy Reportspublished new research on GlobalCloud Computing in Educationcovering micro level of analysis by competitors and key business segments (2022-2029). The Global Cloud Computing in Education explores comprehensive study on various segments like opportunities, size, development, innovation, sales and overall growth of major players. The research is carried out on primary and secondary statistics sources and it consists both qualitative and quantitative detailing.

Some of the Major Key players profiled in the study areAdobe Systems, Inc., Cisco Systems, Inc., Ibm Corporation, Oracle Corporation, Microsoft Corporation, Nec Corporation, Netapp, Vmware, Inc., Amazon Web Services, Inc., Ellucian Company L.P.

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Various factors are responsible for the markets growth trajectory, which are studied at length in the report. In addition, the report lists down the restraints that are posing threat to the global Cloud Computing in Education market. This report is a consolidation of primary and secondary research, which provides market size, share, dynamics, and forecast for various segments and sub-segments considering the macro and micro environmental factors. It also gauges the bargaining power of suppliers and buyers, threat from new entrants and product substitute, and the degree of competition prevailing in the market.

Global Cloud Computing in Education Market Segmentation:

Cloud Computing in Education Segmentation by Type:

.

Cloud Computing in Education Segmentation by Application:

K-12, Higher Education

Key market aspects are illuminated in the report:

Executive Summary:It covers a summary of the most vital studies, the Global Cloud Computing in Education market increasing rate, modest circumstances, market trends, drivers and problems as well as macroscopic pointers.

Study Analysis:Covers major companies, vital market segments, the scope of the products offered in the Global Cloud Computing in Education market, the years measured and the study points.

Company Profile:Each Firm well-defined in this segment is screened based on a products, value, SWOT analysis, their ability and other significant features.

Manufacture by region:This Global Cloud Computing in Education report offers data on imports and exports, sales, production and key companies in all studied regional markets

Market Segmentation: By Geographical Analysis

The Middle East and Africa(GCC Countries and Egypt) North America(the United States, Mexico, and Canada) South America(Brazil etc.) Europe(Turkey, Germany, Russia UK, Italy, France, etc.) Asia-Pacific(Vietnam, China, Malaysia, Japan, Philippines, Korea, Thailand, India, Indonesia, and Australia)

The cost analysis of the Global Cloud Computing in Education Market has been performed while keeping in view manufacturing expenses, labor cost, and raw materials and their market concentration rate, suppliers, and price trend. Other factors such as Supply chain, downstream buyers, and sourcing strategy have been assessed to provide a complete and in-depth view of the market. Buyers of the report will also be exposed to a study on market positioning with factors such as target client, brand strategy, and price strategy taken into consideration.

Key questions answered in the report include:

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Table of Contents

Global Cloud Computing in Education Market Research Report 2022 2029

Chapter 1 Cloud Computing in Education Market Overview

Chapter 2 Global Economic Impact on Industry

Chapter 3 Global Market Competition by Manufacturers

Chapter 4 Global Production, Revenue (Value) by Region

Chapter 5 Global Supply (Production), Consumption, Export, Import by Regions

Chapter 6 Global Production, Revenue (Value), Price Trend by Type

Chapter 7 Global Market Analysis by Application

Chapter 8 Manufacturing Cost Analysis

Chapter 9 Industrial Chain, Sourcing Strategy and Downstream Buyers

Chapter 10 Marketing Strategy Analysis, Distributors/Traders

Chapter 11 Market Effect Factors Analysis

Chapter 12 Global Cloud Computing in Education Market Forecast

If you have any special requirements, please let us know and we will offer you the report as you want. you can also get individual chapter wise section or region wise report version like North America, Europe or Asia.

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Cloud Computing in Education Market 2023 Growth Opportunities ... - The Bowman Extra

New Jersey, United States,-Mr Accuracy Reports , Cognitive Cloud Computing marketreport contains detailed information on factors influencing demand, growth, opportunities, challenges, and restraints. It provides detailed information about the structure and prospects for global and regional industries. In addition, the report includes data on research & development, new product launches, product responses from the global and local markets by leading players. The structured analysis offers a graphical representation and a diagrammatic breakdown of the Cognitive Cloud Computingmarketby region.

The global market size of Cognitive Cloud Computing will reach (2028 Market size $$) million $ in 2027 with a CAGR of % from 2022-2027.

Some of the Major Key players profiled in the study areGoogle, Inc., Clarifai, Inc, Apple, Inc., IBM Corporation, BMC Software, Inc., Amazon Web Services, Inc., IPsoft Inc., Baidu, Inc., Attivio, Inc., CognitiveScale

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Market Overview

In the past few years, the Cognitive Cloud Computing market experienced a huge change under the influence of COVID-19, the global market size of Cognitive Cloud Computing reached (2021 Market size $$) million $ in 2021 from (2016 Market size $$) in 2016 with a CAGR of 7% from 2016-2021 is. As of now, the global COVID-19 Coronavirus Cases have exceeded 200 million, and the global epidemic has been basically under control, therefore, the World Bank has estimated the global economic growth in 2021 and 2022. The World Bank predicts that the global economic output is expected to expand 4 percent in 2021 while 3.8 percent in 2022. According to our research on Cognitive Cloud Computing market and global economic environment, we forecast that the global market size of Cognitive Cloud Computing will reach (2026 Market size $$) million $ in 2026 with a CAGR of % from 2021-2026.

Due to the COVID-19 pandemic, according to World Bank statistics, global GDP has shrunk by about 3.5% in 2020. Entering 2021, Economic activity in many countries has started to recover and partially adapted to pandemic restrictions. The research and development of vaccines has made breakthrough progress, and many governments have also issued various policies to stimulate economic recovery, particularly in the United States, is likely to provide a strong boost to economic activity but prospects for sustainable growth vary widely between countries and sectors. Although the global economy is recovering from the great depression caused by COVID-19, it will remain below pre-pandemic trends for a prolonged period. The pandemic has exacerbated the risks associated with the decade-long wave of global debt accumulation. It is also likely to steepen the long-expected slowdown in potential growth over the next decade.

The world has entered the COVID-19 epidemic recovery period. In this complex economic environment, we published the Global Cognitive Cloud Computing Market Status, Trends and COVID-19 Impact Report 2021, which provides a comprehensive analysis of the global Cognitive Cloud Computing market , This Report covers the manufacturer data, including: sales volume, price, revenue, gross margin, business distribution etc., these data help the consumer know about the competitors better. This report also covers all the regions and countries of the world, which shows the regional development status, including market size, volume and value, as well as price data. Besides, the report also covers segment data, including: type wise, industry wise, channel wise etc. all the data period is from 2015-2021E, this report also provide forecast data from 2021-2026.

Region Segmentation North America (United States, Canada, Mexico) South America (Brazil, Argentina, Other) Asia Pacific (China, Japan, India, Korea, Southeast Asia) Europe (Germany, UK, France, Spain, Italy) Middle East and Africa (Middle East, Africa)

Cognitive Cloud Computing Segmentation by Type:

.

Cognitive Cloud Computing Segmentation by Application:

Healthcare, IT&telecom, Government(Defense), Banking Financial Services, Insurance(BFSI), Retail, Other

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What is the goal of the report?

The market report presents the estimated size of the ICT market at the end of the forecast period. The report also examines historical and current market sizes. During the forecast period, the report analyzes the growth rate, market size, and market valuation. The report presents current trends in the industry and the future potential of the North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa markets. The report offers a comprehensive view of the market based on geographic scope, market segmentation, and key player financial performance.

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Cognitive Cloud Computing Market 2023 by Keyplayers and ... - The Bowman Extra

Exploring the Impact of Multicloud Management Platforms on Cloud Computing Evolution

The cloud computing landscape has undergone a significant transformation in recent years, with the emergence of multicloud management platforms taking center stage. These platforms are revolutionizing the way businesses and organizations manage their cloud infrastructure, providing a comprehensive solution for managing multiple cloud environments. As more enterprises adopt multicloud strategies, the impact of multicloud management platforms on the evolution of cloud computing is becoming increasingly apparent.

One of the most notable impacts of multicloud management platforms is the way they have streamlined the management of cloud resources. In the past, managing multiple cloud environments was a complex and time-consuming process, often requiring IT teams to juggle multiple tools and interfaces. Multicloud management platforms have simplified this process by providing a single, unified interface for managing resources across multiple cloud environments. This not only saves time and effort for IT teams but also reduces the risk of errors and misconfigurations that can lead to security vulnerabilities and performance issues.

Another significant impact of multicloud management platforms is the increased visibility they provide into cloud environments. With the ability to monitor and manage resources across multiple clouds, IT teams can gain a comprehensive view of their entire cloud infrastructure. This enables them to identify potential issues and bottlenecks more quickly, as well as optimize resource usage and costs. Additionally, the increased visibility provided by multicloud management platforms can help organizations better understand their cloud spending and make more informed decisions about resource allocation and budgeting.

Multicloud management platforms also play a crucial role in enhancing security and compliance in cloud environments. By providing a centralized platform for managing security policies and configurations across multiple clouds, these platforms help ensure that organizations maintain consistent security practices across their entire cloud infrastructure. This is particularly important in the age of stringent data protection regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which require organizations to implement robust security measures to protect sensitive data.

In addition to improving security and compliance, multicloud management platforms also facilitate greater collaboration between IT teams and other business units. By providing a single platform for managing resources across multiple clouds, these platforms enable IT teams to work more closely with other departments to ensure that cloud resources are being used effectively and efficiently. This can lead to better alignment between IT and business objectives, as well as improved overall organizational performance.

Finally, multicloud management platforms are driving innovation in the cloud computing industry by encouraging the development of new tools and technologies. As organizations increasingly adopt multicloud strategies, the demand for solutions that can simplify and streamline the management of multiple cloud environments is growing. This has led to a surge in innovation in the multicloud management space, with new platforms and tools being developed to help organizations manage their cloud infrastructure more effectively.

In conclusion, multicloud management platforms are playing a pivotal role in the evolution of cloud computing, driving significant improvements in the way organizations manage their cloud infrastructure. By streamlining the management of multiple cloud environments, providing increased visibility into cloud resources, enhancing security and compliance, facilitating greater collaboration between IT teams and other business units, and driving innovation in the cloud computing industry, these platforms are revolutionizing the way businesses and organizations leverage the power of the cloud. As multicloud strategies continue to gain traction, the impact of multicloud management platforms on the evolution of cloud computing is likely to become even more pronounced in the coming years.

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How Multicloud Management Platforms are Revolutionizing Cloud ... - CityLife

HONG KONG (AP) Alibaba plans to spin-off of its cloud computing business and said Thursday that its logistics and grocery units will explore initial public offerings as the Chinese e-commerce company kickstarts a restructuring of its operations in hopes of spurring growth.

The company in March announced plans to reshape itself into six business divisions with plans to allow all but its core e-commerce business to raise external capital and go public.

In an earnings call Thursday, Alibaba CEO Daniel Zhang said that the Alibaba plans to fully spin off its cloud computing unit and complete a public listing in the next 12 months, allowing it to optimize operations, Zhang said.

Alibabas board of directors approved the full spin-off of the cloud computing unit via a stock dividend distribution to shareholders, the company said.

Zhang also said that Freshippo, its groceries arm, as well as logistics arm Cainiao, are ready to go public.

Alibabas board has approved plans to begin Freshippos IPO process and Cainiao will explore an IPO in the next 12 to 18 months, he said.

Other units such as Alibabas international digital commerce group, which operates Singapore-based e-commerce platform Lazada, will also explore raising external capital as it seeks to expand globally.

Alibaba Group Holding on Thursday posted a lower-than-expected 2% rise in revenue for the quarter ended March, suggesting that spending has been slow to bounce back in China since the removal of COVID-19 restrictions amid slowing economic growth.

The company reported revenues of 208.2 billion yuan ($29.6 billion) for its March quarter. It also reversed losses from the same quarter last year, posting a net income of 23.5 billion yuan ($3.3 billion) due to one-off gains from its equity investments.

Revenue from its China commerce business Alibabas largest business unit by revenue declined 3% compared with the same period last year. Its cloud computing unit also declined 2% in revenue.

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Alibaba approves cloud computing unit spin-off, prepares for grocery and logistics arms to go public - Yahoo Finance

By Stephen Nellis

(Reuters) - Ampere Computing on Thursday released a new family of data center chips with technology it has custom-designed for cloud computing companies.

Founded by former Intel Corp president Renee James, Ampere has focused on courting cloud companies that buy thousands of chips at a time and in turn rent them out. The company has deals in place with Alphabet Inc's Google Cloud, Microsoft Corp's Azure and Oracle Corp's cloud unit, among others.

Unlike Intel, Ampere uses a computing architecture from SoftBank Group Corp-owned Arm Ltd, which is also an investor in Ampere. But the new AmpereOne offerings announced Thursday are the first that use Ampere's own custom-designed computing cores, which are the most important part of the chips, which are in turn the brains of data center servers that power everything from business apps to social media sites.

The new Ampere chips will have as many as 192 of those cores where Intel chips tend to have only a few dozen. The high core counts are because cloud companies make money by slicing up chips and selling just a piece of their computing power to customers, and having a large number of cores makes doing so easier.

After Ampere disclosed its approach, Advanced Micro Devices announced a 128-core chip based on the what is called the "x86" architecture used by AMD and Intel. Intel also has a high-core-count chip in the works.

"It's flattering that the x86 vendors have been able to get closer to us, but we're well on our way to higher core counts now," said Jeff Wittich, Ampere's chief product officer.

Ampere last year filed a confidential registration with U.S. securities regulators for an initial public offering. Oracle, where Ampere's CEO James sits on the board, is a major investor. James declined to say when Ampere might go public.

"We did not pull our registration. We are ever hopeful that the market will open and that it will open for growth companies," James said.

(Reporting by Stephen Nellis in San Francisco; Editing by Mark Potter)

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Ampere Computing launches its custom chips aimed at cloud computing - Yahoo Finance

Amazon Web Services is a hulking mess of a cloud computing platform. It offers hundreds of distinct products and services, many of which overlap, with pricing schemes that almost seem designed to confuse. Enterprises love AWS, but then again, they also have armies of IT staff to figure it all out.

There's a big market for cloud computing simplicity. Platforms like DigitalOcean, Akamai's Linode, Vultr, Netlify, Vercel, and many others aim to make life as simple as possible for developers. In some cases, that means a highly curated list of services with dead-simple pricing. In others, it means an opinionated serverless platform that makes deploying applications a breeze.

Cloudflare (NET -0.91%) is taking the latter route with its serverless Workers platform. With Workers, developers can deploy full-stack applications to Cloudflare's global fleet of edge servers. Code runs nearly instantly as close to the end user as possible.

Cloudflare has been building an ecosystem around Workers for the past few years, rolling out products including R2 object storage, Pub/Sub for messaging, and the D1 relational database. But there's been one glaring problem that has made the whole platform a non-starter for many potential customers, and Cloudflare finally has the pieces in place to fix it.

Any useful web application needs some sort of database. There are countless database software options to choose from. In the world of relational databases, there's Oracle, Microsoft's SQL Server, and open-source options like MySQL and PostgreSQL. Outside of relational databases, there's the document-based MongoDB, key-value store Redis, and a slew of others. Some applications may use multiple databases, while others may stick to one. But somewhere, data needs to be persisted in an orderly, queryable way.

The one thing that almost all databases have in common is that they don't work over HTTP. In other words, hitting the database isn't just a simple API call. Databases generally use lower-level, long-lived TCP connections with custom protocols.

Up until now, Cloudflare's Workers did not support TCP connections. That means that a developer running a database somewhere else could not use Workers with that database without resorting to a middleman. A developer could set up a server application outside of Cloudflare that accepts API calls from a Worker, pulls data from the database, and returns it to the Worker, but the Worker could not access the database directly.

That's an annoying problem. Annoying enough, in all likelihood, to make Cloudflare Workers a non-viable option for many developers. The good news is that Cloudflare finally has the beginnings of a solution to this problem. On Tuesday, the company announced a new feature for Workers that allows outbound TCP connections.

Cloudflare Workers can now connect to any service that accepts TCP connections. There are some caveats, though. For connecting to databases, the database driver library a developer uses to initiate and manage the connection must explicitly support Cloudflare's solution. Cloudflare is working on broadening support, but there are currently big gaps.

Database access was the missing piece of the puzzle for Cloudflare workers. Once a Worker can connect directly to any database, the potential of the platform greatly expands. Suddenly, a developer hosting a database on AWS, or on any other cloud platform, can run their actual application on Cloudflare Workers, benefiting from the global reach of Cloudflare's network.

Serverless platforms like Cloudflare Workers take cloud computing and distill it down into deploying applications and not worrying about issues like scaling and performance. The platform takes care of all that. Compare this to the nightmare of managing complex cloud infrastructures on AWS, and you can see why serverless platforms are gaining in popularity.

With database access on its way to being a solved problem, Cloudflare Workers takes another step toward largely eliminating the need for a traditional cloud platform for developers and businesses.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Timothy Green has positions in DigitalOcean. The Motley Fool has positions in and recommends Amazon.com, Cloudflare, DigitalOcean, Microsoft, and MongoDB. The Motley Fool has a disclosure policy.

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Cloudflare Is Fixing the Biggest Problem with Its AWS Killer - The Motley Fool

Amazons cloud computing unit plans to invest $12.7 billion in India by 2030 to meet growing demand for cloud services in the worlds most populous country, the company announced Thursday.

The long-term commitment will take Amazon Web Services total investment in India to $16.4 billion, following its $3.7 billion investment between 2016 and 2022, which Amazon (ticker: AMZN) used to launch two data infrastructure regionsin Mumbai and Hyderabad.

Big...

Amazon s cloud computing unit plans to invest $12.7 billion in India by 2030 to meet growing demand for cloud services in the worlds most populous country, the company announced Thursday.

The long-term commitment will take Amazon Web Services total investment in India to $16.4 billion, following its $3.7 billion investment between 2016 and 2022, which Amazon (ticker: AMZN) used to launch two data infrastructure regionsin Mumbai and Hyderabad.

Big Tech companies have been expanding their footprint in one of the worlds fastest-growing economies in recent years. Microsoft (MSFT) has three data centers in India and plans to open a fourth, while Alphabet (GOOGL) opened its second cloud data center region in the country in 2021.

Apple (AAPL) has also expanded its presence in the country, opening its first stores in the South Asian country in April, while iPhone maker Foxconn is planning to build a new factory in the state of Karnataka. The states chief minister Basavaraj Bommai said it will create 100,000 jobs.

AWSs investment in data center infrastructure will create 131,700 jobs annually, it said in a release.

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Since 2016, AWS has invested billions of dollars into cloud infrastructure in India to support the tremendous growth we have witnessed in the use of cloud for digital transformation, AWS Indias president of commercial business, Puneet Chandok said.

Write to Callum Keown at callum.keown@barrons.com

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Amazon's Cloud Business Makes a Big Bet on India. Big Tech Loves the Country. - Barron's

What happened

There's no question that the primary driver of the stock market over the past year or so has been the state of the economy. High inflation, rising interest rates, various political dramas, and concerns about a potential recession have all weighed on the market.

Yet investor sentiment has been rising in recent weeks, as earnings season showed that the sky was not falling, contrary to popular belief. Furthermore, slowly but steadily improving economic conditions are fueling investor hopes for a so-called "soft landing," with the economy ultimately avoiding a recession.

With that as a backdrop, Cloudflare (NET -0.91%) rose 19.3%, Confluent (CFLT) climbed 18.5%, and Splunk (SPLK -0.50%) jumped 13.3% for the week, as of 11:11 a.m. on Friday, according to data provided by S&P Global Market Intelligence.

Image source: Getty Images.

A check of all the usual sources -- regulatory filings, earnings results, and changes to analysts' targets -- turned up little in the way of company-specific news driving these cloud stocks higher this week. This seems to suggest that the majority of investors are responding to incremental improvements in the state of the broader economy.

The U.S. Department of Labor released its unemployment weekly claims report, which revealed that initial jobless claims decreased by 22,000 to 242,000 for the week ending May 13, which was well below economists' forecasts of 254,000. It also marked the largest drop in weekly jobless claims since November 2021. Continuing claims, or the number of people already collecting unemployment benefits, decreased by 8,000, largely unchanged at a total of 1.79 million. This suggests that unemployed workers are finding new positions quickly.

The strength of the labor market continues to defy concerns that a recession could be imminent. Further debunking those fears were better-than-expected results from Walmart, which points to resilient consumer spending -- the bedrock of the economy.

In the lone piece of company-specific news, regulatory filings confirmed that activist investor Starboard Value more than doubled its position in Splunk. For the quarter ending March 31, Starboard increased its stake by 2.7 million shares, bringing its total holdings to 4.6 million -- or roughly 2.8% of the shares outstanding.

Starboard has previously said it believes Splunk is undervalued, compared to its opportunity, and has a significant opportunity to drive operational improvements and expand its margins -- an opinion that's no doubt music to the ears of shareholders.

But while investor sentiment saw the glass as half full this week, the market is just one negative report away from turning south, since challenges remain and stocks will continue to be volatile for the foreseeable future.

So what does all this have to do with cloud computing stocks? Software-as-a-service (SaaS) and other cloud-based businesses have been particularly hard hit by the downturn, as investors turned to the safety of profitable stocks.

A quick look at Confluent, Cloudflare, and Splunk show that they were, indeed, part of that illustrious group, with their stocks down 71%, 66%, and 26%, respectively, during 2022. It's no coincidence that all three were unprofitable over the past year.

However, as the specter of a recession dims, investors are increasingly willing to take chances on these stocks, as long as they have compelling growth prospects.

Then there's the matter of valuation. None of these stocks is cheap, though they are trading at a significant discount to their recent highs. Cloudflare, Confluent, and Splunk are currently selling for 12 times, 8 times, and 4 times next year's sales, respectively, when a reasonable price-to-sales ratio is generally between 1 and 2.

Valuation shouldn't be viewed in a vacuum, and investors frequently award higher valuations to businesses with continued strong revenue growth -- even unprofitable ones -- given the chance of strong future returns.

For investors willing to hold their shares for three to five years, these stocks represent an intriguing opportunity. While they aren't for everyone, this trio of companies could generate impressive gains over time, but they do carry a higher degree of risk.

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Why Cloudflare, Confluent, and Other Cloud Stocks Soared This Week - The Motley Fool