Profit from cloud computing

So far, 'cloud computing' has not lived up to the hype – big business has stayed away because of security fears. But that's set to change. James McKeigue examines the sector and picks the three best stocks to buy now.

For more than a decade, technology experts have been predicting a computing revolution. They dreamed of computing power becoming commoditised delivered through a grid system that would allow providers to sell hardware and software just as a utility trades electricity. In the last few years, this dream has spread from Silicon Valley to Wall Street, where any firm specialising in 'cloud computing' the latest buzzword for the concept trades on sky-high valuations.

But despite the investment hype, cloud computing is still a long way from meeting the heady expectations of the late 1990s. While individuals and smaller firms have taken to various forms of cloud computing, most large firms have yet to be convinced, and experts in the field are still struggling to overcome several technical challenges. The good news for investors is that there are plenty of companies, still unnoticed by the market, who are set to benefit when cloud computing for big business goes mainstream.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.