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No. of Recommendations: 6
with most of those IPOs I have a hard time visualizing what they do up in the clouds. Is cloud in a bubble?

From my point of view, the answer here is a resounding "Cloud is real"

Cloud is a transformation in the way everyone does business - it is much cheaper and more efficient, so if you don't go to the cloud, you will be left on the side of the highway. For large enterprises this means big changes - no more data centers and servers, a whole new way to do scaling, security, monitoring, disaster recovery, etc. Employees need to update their skills, execs need to get their heads around new operational advantages and risks. Legal, compliance, and security all have to change their policies and procedures.

This big a change is expensive and risky and companies that simplify or ease the change will do really well and become the bedrock of the new technology - hence the focus on growth at the expense of profits, and the huge run-up on some stocks.

As I look at the market, I don't see all cloud companies going up equally - investors are very targeted in what they invest in, looking for real success in the transformation, so it doesn't seem like a bubble to me at all. There is definitely speculation, and some of these companies will fail, but some will shoot to the moon, and I do think the Fool is helping us to separate the two.
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