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Home / Business / One company gets a $ 10 billion catalyst next week – How to play it

One company gets a $ 10 billion catalyst next week – How to play it



Cloud computing is expected to grow 17.5% this year to a global value of $ 214.3 billion, according to Gartner Inc.

It is no wonder that tech giants like Microsoft Corp. (NASDAQ: MSFT) and International Business Machines Corp. (NYSE: IBM), who just hit their earnings estimates in the back of their cloud industries, is working furiously to get hold of its share.

Currently, even the Government comes with the program, so to speak. Microsoft and Amazon.com Inc. (NASDAQ: AMZN), via Amazon Web Services (AWS), is fighting for a $ 10 billion cloud computing project for the Pentagon, called the Joint Enterprise Defense Infrastructure (JEDI) project . As if a Star Wars-themed name wasn't good enough, call someone to the Defense Department's "War Cloud" project.

Although this emphasizes how important the cloud will be, it also provides a great opportunity for a short-lived

You see, a company is more likely to get the contract and it can provide a quick, short-term increase to the shares as soon as as of next week.

Here's why computing is such a game changer – and which company do we think has the best shot at landing this $ 10 billion a week …

Why Cloud Computing is Fueling Tech Growth

Clouden is really just another term for the internet – because a company or a person can access data and applications from anywhere and theoretically on their handheld device.

As technology becomes less centralized, businesses can store their data offsite in reliable, backed-up servers operated by others. And they can lease time on powerful computers that would be too expensive for them to own and maintain themselves. This collective off-site power is just called the "cloud," and companies that provide hardware, software, and services are called cloud computing companies.

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These companies drive the spectrum from offering broadband speed to connect computers to cloud networks, servers for storing data and software-as-a-service companies ( SaaS) that offers remote access to powerful applications.

It's innovation! And that's the current technology.

Right now, Amazon's Amazon Web Services and Microsoft's Azure cloud divisions are leading the cloud computing sector.

It's no wonder they are both finalists to win the Pentagon's coveted $ 10 billion contract.

But only one of them will get it …

Who will win the Pentagon's JEDI contract?

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