Venture Capitalists Recognize the Cloud's Potential

The term "cloud computing" is a broad phrase that encapsulates multiple smaller markets, including those designed for improving infrastructure, security, storage, and other mission-critical services. Still, the cloud and all its sub-genres hold massive potential for many industries, including the venture capital landscape, which recognizes the hosted solutions as one of the largest and most financially promising areas.

VentureBeat recently highlighted this notion, noting that the cloud's ability to optimize performance is one of the biggest reasons so many companies are pursuing the technology. Due to the inherent low costs and scalable nature of the cloud, it can drive business results in numerous ways, allowing smaller firms to gain a competitive advantage over larger enterprises, while granting successful businesses new chances to widen the gap over rivals.

"We're seeing a wide array of companies building solutions that may not seem to be very sexy but deliver tremendous value," said Cindy Padnos, founder and managing partner at Illuminate Ventures, according to VentureBeat.

The Big Data phenomenon in particular is encouraging organizations to implement the cloud in an effort to manage information and other digital assets more efficiently. Because the cloud is much more flexible than traditional IT infrastructure services, companies can gather, analyze, and use data to engage with clients more effectively, creating a holistic experience that will encourage prospective and existing customers to return to the business again and again.

The need to manage data
Although the proliferation of digital information holds promise for organizations of all sizes, those advantages can only be achieved when companies leverage a platform that is capable of deciphering the complex nature of that data, VentureBeat noted. Cloud infrastructure transformations are presenting new opportunities to companies that have traditionally struggled to use information.

"There is a natural progression over time as data platforms mature," said Jake Flomenberg, venture capitalist at Accel Partners, VentureBeat reported. "The first thing is arming the more technical folks and later you see more targeting of business users."

A report by market research firm Ovum highlighted how the cloud is changing the conventional business intelligence landscape by offering organizations the ability to leverage highly scalable and easy-to-use platforms. Doing so will give decision-makers the chance to embrace Big Data with fewer concerns about management and analytics in general.

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