Assessment of the investment attractiveness of the cloud technologies industry

Abstract

The cloud technology industry is one of the fundamentally important industries today, occupying an important place in the context of digital transformation due to the colossal increase in information. The process of digital transformation began not so long ago, but it has already become obvious that cloud computing has become a key factor in the rapid implementation of innovations in local and international markets. Increasing competition in the digital field forces international and local enterprises to take unprecedented steps to collect and analyze large amounts of data that users leave in the Internet space. This is what drives cloud providers to make huge capital investments in hardware and human capital.The purpose of the study is to analyze the current state of the cloud technology industry for making an investment decision. The article reveals the economic potential of the cloud technology industry, providing highlighted the key benefits of cloud computing that are accelerating the adoption rate of the technology and identified the major key players that make up the majority of the market. According to the results of the study, it was found that the most attractive country for investments in the field of cloud technologies is the USA, which, according to the criterion of the volume of investments in the industry, occupies a leading position, having a wide list of cloud service providers. Among the analyzed companies, in the context of the search for the optimal enterprise for investment, it was determined that Microsoft Corporation has the highest profitability ratios among existing enterprises in the industry, and financial risks are at a moderate level. During the implementation of the discounted cash flow model, it was found that the company’s shares have a stable growth potential. Based on the results of the study, it is proposed to combine two approaches to the analysis of existing alternative technologies for storing and processing large databases, identifying the nature of key financial risks and their negative impact on determining the final fair value of a share.
 JEL classіfіcatіon: G11, G24