The Future of Technology
As we kick off 2021, there are six emerging technology trends that are set to define the next decade.
Renting out IT capacity in the cloud rather than building it yourself - is arguably the biggest tech trend of this decade.
Software as a Service
This service continues to grow and be a bigger piece of the pie as companies move to the cloud model and a subscription model of accessing the latest and greatest and secure software at all times.
5G and the companies that enable 5G technology, the semiconductors and required equipment are also favorable trends in technology.
The Internet of Things
The internet of things is something we continue to hear more about - making devices smarter, with more sensors, more processors, and greater connectivity.
Big data is an ongoing trend - capturing and analyzing data and storing it efficiently.
Cybersecurity continues to be a focus, accelerated by the global move to remote working and the need to access networks and software from different devices and in different ways.
ETFS Morningstar Global Technology ETF (ASX Code: TECH) provides exposure to quality global tech companies and captures the growing trends across the tech sector. TECH, therefore, enables investors to access individual themes, such as cloud computing, through a broader sector ETF with companies vetted for quality and value through Morningstar’s moat methodology.
Trend in Focus: Cloud Computing
Drilling down into Cloud Computing, 20 companies in TECH's portfolio with a combined weight of 56.5% have exposure to this theme (as of 12 April 2021). These are companies that create and develop cloud solutions, software as a service companies that use cloud infrastructure, cybersecurity companies and other firms that are involved in the building, managing or selling of equipment or chips into cloud vendors. Alongside Microsoft, Salesforce and Workday, lesser-known companies with exposure to Cloud Computing in TECH include:
Artisan Networks Inc.
Artisan Networks Inc. is an industry leader in cognitive cloud networking for mission-critical data center and campus environments.
Citrix Systems Inc.
Citrix Systems Inc. is in the process of transforming to a cloud-based model with its focus on moving from software licenses to software as a service, driving growth in its Citrix Cloud product and via its recent US$2.5bn acquisition of Wrike – a provider of leading cloud-native, collaborative work management platforms.
F5 Networks Inc.
F5 Networks Inc. provides multi-cloud application services for the security, performance, and availability of network applications, servers, and storage systems. The company's multi-cloud application services enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud.
Oracle Corp., via its Oracle Cloud Infrastructure (OCI) product, provides all three layers of the cloud - connected in unprecedented ways.
Service Now Inc.
Service Now Inc. is one of the fastest‑growing $1‑billion cloud enterprise software companies in the world, fo