For the second year in a row, VC investors have had their eyes on cloud computing according to a 2104 Global Venture Capital Confidence Survey, which is great news for MSPs looking to expand their businesses.
For the second year in a row, VC investors have had their eyes on cloud computing according to a 2104 Global Venture Capital Confidence Survey, which is great news for MSPs looking to expand their businesses in the cloud, including with cloud-based file sharing.
The survey, which probed the minds of more than 300 venture capital, private equity and growth equity investors in the Americas, Europe, Asia and Africa showed particularly strong levels of investor confidence in the mobile and cloud computing area.
The following is a closer look at some of the results, and what this could mean for the future cloud innovation and computing.
Investor confidence is up in the United States
The investors polled were asked to rate their confidence levels on a variety of different market factors in specific geographies and industry sectors on a scale of 1 to 5, with 5 being the most confident.
For the second year in a row, VC investors in the United States listed cloud computing and mobile technology as their top choice for investor confidence, with cloud computing at 4.29 and mobile technology close behind at 4.28. In fact, overall investor confidence has grown over the past 3 years, up from 2 percent last year. This was attributed to improving capital market conditions and the abundance of new start-up companies.
Zeus Kerravala from ZK Research said, “This is great. Typically, innovation comes from start-ups, not the huge IT companies. These smaller, more nimble companies can bring innovative solutions to market. VC investments help drive new ideas.”
Therefore, we can expect to see many opportunities for change and innovation in the cloud and MSP arenas, as venture capitalists put their funding into new cloud resources and solutions.
VC investments could further help cloud expand into mobile arena.
It’s not a coincidence that investors are confident in the mobile and cloud space simultaneously. Solid financial backing will help converge the mobile and cloud computing spaces in a way that broadens the set of cloud solutions available to us.
Currently, cloud services are predominantly made to run with desktop apps. But as Kerravala puts it, “cloud apps should be more predictive and have contextual knowledge of who you are, where you are and what you’re doing.”
Optimizing the cloud for the mobile world will offer new opportunities for MSPs and help enterprises integrate into their systems.
Maintaining this investor confidence
Bobby Franklin, president and CEO of the National Venture Capital Association spoke of this wealth of investor confidence and called on policymakers to support the innovators who build these next generation companies.
"In order to maintain this enthusiasm in U.S. innovation, policymakers in Washington need to come together to enact policies that support the creation of sustainable, high-growth companies that create jobs and drive economic growth."
According to the survey, the greatest confidence for investing lies within IT and technology related sectors that are less capital intensive. In other words, enterprises that require a proportionately large financial expenditure relative to the amount of labor involved, such as hardware and semiconductor sectors, are not seeing much enthusiasm.
Technology, robotics, enterprise software, cloud computing and mobile companies will be seeing a lot of change however, leaving a lot of room and opportunity for MSPs to evolve with it.
How might MSPs expand on the areas where VCs are investing? Leave a comment in the section below.