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Cloud Services Stocks: Key Moves and Market Trends in 2025

Cloud Services
Cloud Services Stocks: Key Moves and Market Trends in 2025

Cloud Services: Navigating Growth and Change in 2025

Cloud services continue to weave deeper into the fabric of business operations, driving a suite of strategic maneuvers from big players and newcomers alike. From hybrid cloud innovations to strategic divestments, here are some of the top stock stories shaping this bustling sector.

IBM vs. Oracle: The Hybrid Cloud Power Players IBM and Oracle are battling it out in the hybrid cloud arena. Oracle’s Infrastructure-as-a-Service revenue surged by 51%, hitting $10.2 billion, showcasing hungry demand for its cloud infrastructure.

IBM, meanwhile, is banking big on a hybrid cloud and AI combo. By snapping up companies like HashiCorp, which boosts cloud software capabilities, IBM is crafting a stronger hybrid multi-cloud approach. Additionally, purchases like StreamSets and webMethods help IBM sharpen its AI and automation edge. But it’s a tough fight against Amazon AWS and Microsoft Azure, with pricing pressures squeezing margins and a challenging shift from traditional business models.

Watchlist Spotlight: NetApp and Cloud Storage Dynamics On the cloud storage front, NetApp remains a notable player. It boasts a diverse portfolio from hybrid cloud to public cloud services, managing data efficiently for a range of enterprise needs. With a market cap of over $20 billion and a solid PE ratio, NetApp’s shares have been actively traded, reflecting investor interest.

Several other companies like Commvault Systems, Alarm.com, and Backblaze are also attracting attention as cloud storage demand grows, driven by companies and consumers needing secure, scalable data solutions.

Applied Digital’s Bold Shift: Divesting Cloud for Data Centers Applied Digital is taking a sharp turn. Planning to sell its cloud services arm — which accounts for a third of its revenue — the move aims to reposition the company as a focused data center real estate investment trust (REIT).

This pivot is about clearing the way for a smoother financing path and better market valuation. They’re distancing from cloud competition with hyperscale customers to favor their core business in high-performance computing and data-center infrastructure leasing. Despite a recent revenue dip shaking investors, Applied Digital secured big deals worth billions, underscoring strong demand for data-center infrastructure.

Hybrid Cloud Storage: The New Frontier Hybrid cloud storage solutions are catching on fast, driven by the need to manage growing volumes of enterprise data efficiently—especially for AI workloads. The market is nascent but robust, generating around $100 billion in 2024 and expected to grow 16% annually over six years.

Key vendors like Cloudian, CTERA, Hammerspace, LucidLink, Nasuni, NetApp, Panzura, and Peer Software are competing to provide unified data platforms that handle diverse data types and support large-scale AI applications.

Cloudflare: Edge Computing and Security Highlights Cloudflare continues to expand beyond content delivery into edge computing, serverless platforms, and cybersecurity. They’ve launched innovative services like Cloudflare Workers, an edge SQL database, and acquired companies to ramp up bot management for IBM Cloud.

They also play a stealthy but critical role helping boost SpaceX’s Starlink performance and recently introduced new web tools akin to Google Fonts. Their SASE platform—Cloudflare One—incorporates acquisitions enhancing email phishing defense and cloud network capabilities.

What This Means for Investors and Businesses

  • The cloud services space is diversifying rapidly with tighter competition and strategic realignments.
  • Hybrid cloud and AI integration remain growth engines but bring operational challenges.
  • Data center infrastructure is emerging as a rival focus area with promising demand.
  • Edge computing and cybersecurity are critical battlegrounds exemplified by Cloudflare’s moves.

Whether you’re an investor or a professional navigating cloud trends, these stories highlight the sector’s dynamism and the need to stay informed about both technology shifts and business strategies.

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