What is SaaS and how does it impact businesses?

Software-as-a-Service (SaaS) is a software delivery model where applications are hosted in the cloud and accessed via the internet, typically through a subscription. Unlike traditional software that requires installation on devices, SaaS solutions like Salesforce, Microsoft 365, and Zoom can be used instantly from any device with an internet connection. For businesses, this means lower upfront costs, automatic updates, easier scalability, and the ability to access powerful tools without maintaining complex IT infrastructure. This new approach is revolutionizing how companies operate, making enterprise-grade software accessible to businesses of all sizes.

How is cloud computing different from traditional computing?

Cloud computing delivers computing services (like storage, processing power, databases, and software) over the internet ("the cloud") instead of on local hardware. In traditional computing, companies need to buy, maintain, and upgrade their own servers and data centers. With cloud solutions from companies like Microsoft Azure or Google Cloud, businesses can use exactly what they need on-demand, scaling up or down instantly. This significantly reduces hardware costs, eliminates maintenance headaches, enables remote work, and provides access to cutting-edge technologies without massive investments. It's like switching from generating your own electricity to simply connecting to the power grid.

What does the projected market growth mean for cloud computing stocks?

The projected growth of the cloud computing market from $371.4 billion to over $1.25 trillion by 2028 signals tremendous potential for companies in this sector. This 17.5% annual growth rate suggests that cloud companies have substantial room to expand their customer bases, increase revenues, and potentially deliver strong returns to investors. For cloud computing stocks, this could mean continued business expansion, rising valuations, and opportunities to develop new services. However, it's worth noting that while the overall sector is growing rapidly, competition is intense, and not all companies will benefit equally from this expansion.

Why are businesses moving to SaaS and cloud solutions?

Businesses are rapidly adopting SaaS and cloud solutions for several compelling reasons. First, affordability: they can access sophisticated software through subscription models without large upfront investments in hardware and licenses. Second, flexibility: companies can easily scale services up or down based on changing needs. Third, accessibility: employees can work from anywhere with internet access, which has become essential in today's remote and hybrid work environments. Finally, innovation: cloud providers continuously update their services with the latest features and security patches, allowing businesses to stay current without managing complex upgrades. This combination of benefits makes cloud solutions a strategic advantage rather than just an IT choice.

18 handpicked stocks

SaaS & Cloud Computing

Invest in the digital revolution that's reshaping how businesses operate worldwide. This collection of carefully selected stocks represents companies at the forefront of software innovation, cloud technology, and digital transformation.

+10

Han Tan | Market Analyst

Published on May 23

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Microsoft Corporation

MSFT

Current price

$517.43

Salesforce Inc

CRM

Current price

$238.88

Adobe Systems Inc.

ADBE

Current price

$349.98

Alphabet Inc (Google)

GOOGL

Current price

$243.69

ServiceNow, Inc.

NOW

Current price

$914.12

Snowflake Inc.

SNOW

Current price

$240.54

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+9.77%

≈

About This Group of Stocks

Our Expert Thinking

These companies are powering the global shift to digital solutions. With cloud computing projected to grow at 17.5% annually to reach $1.25 trillion by 2028, these industry leaders are positioned at the heart of business transformation and innovation.

What You Need to Know

This group includes established giants like Microsoft and Google alongside specialized innovators like Salesforce and Shopify. Together they represent various segments of the cloud ecosystem, from infrastructure and security to specialized business applications.

Why These Stocks

These 20 companies were selected for their leadership positions in high-growth cloud segments. Each offers unique strengths in the SaaS and cloud computing ecosystem, with strong market positions and the potential to benefit from the ongoing digital transformation.

Group Performance Snapshot

9.72%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 9.72% over the next year.

15 of 18

Stocks Rated Buy by Analysts

15 of 18 assets in this group are rated Buy by professional analysts.

3.7%

Group Growth

This group averaged a 3.7% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

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Explosive Market Growth

The cloud computing market is set to triple from $371 billion to over $1.25 trillion by 2028. These companies are the engines behind this massive growth wave.

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Business Essentials, Not Options

Cloud software isn't a luxury anymore—it's how modern business operates. These stocks represent services becoming as essential as electricity for companies worldwide.

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Future-Proof Your Portfolio

Digital transformation isn't slowing down. By investing in cloud leaders now, you're positioning yourself in one of technology's most resilient and innovative sectors.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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