A Look at the World's Leading Cloud Computing Tech Hubs

From huge multinational corporations to normal everyday end users, the cloud has introduced a level of autonomy and efficiency never seen before.

Cloud computing provides on-demand access to applications, platforms, and infrastructure without the need for heavy infrastructure investment. The majority of these services fall into three categories:

• IaaS (Infrastructure as a Service)
• PaaS (Platform as a Service)
• SaaS (Software as a Service)

As this space continues to grow and technology develops, cloud entrepreneurs and innovators will continue to propel the industry to newer and ever more exciting heights.

But where exactly are all of these cutting-edge cloud collectives congregating, which countries are leading the charge into a cloud-based future, and what factors are influencing this rapid rise of technological greatness?

Where in the world has the most cloud computing companies?

Although there is strong competition globally in cloud-based tech companies, it only seems fair that the birthplace of the internet is also a major hotspot for technological advancement; with the highest proportion of cloud-based companies in the world. The United States is known for its vast array of tech entrepreneurs and development hubs, making it integral for many cloud-based innovations.

The hotly-contested second spot goes across the Atlantic to the United Kingdom, where the government has recently set core objectives to "sustain strategic advantage" in its technological developments by 2023.

As a whole, European countries feature more on the top 20 than any other continent, with locations including Sweden, France, and the Netherlands boasting widely diverse clusters of cloud-based companies.

Which US states have the most cloud companies?

When it comes to disruptive technological breakthroughs, the United States is arguably unmatched; hosting some of the world's leading cloud computing for both long-standing and startup businesses alike.

It’s no surprise that California is leading the pack with 842 cloud companies in the state alone. Silicon Valley has long been known as the global center for high technology and innovation with cloud companies across the state, from Santa Clara to Palo Alto and Cupertino to Irvine.

But when it comes to cloud computing, it’s no longer all about the West Coast. Following the “Golden State’s” example, the likes of New York (151) and Texas (148) are forging their own paths in the East and South respectively. Although these 299 businesses pale in comparison to California’s cloud catalogue; they are definitely places to watch for future development.

The future of cloud computing

The United States has long established itself as a key player with regards to its high concentration of cloud businesses. However, the future could look very different, as other nations climb the ranks.

The following reveals the most up-and-coming countries for cloud entrepreneurs, based on the number of cloud-based startups in the past 5 years. This has been plotted against each country’s respective population to show the true scale of growth.

Israel’s cloud startup economy is growing fast, with the country boasting 76 cloud startups founded since 2017, as well as the highest proportion of cloud-based businesses per million people at 8.4.

Another notable location for growth among the top countries is Singapore. Its prowess for the future of the cloud is exemplified through its 33 cloud computing startups founded in the last 5 years; its 5.5 cloud startups per million people; as well as a relatively low corporate tax rate (17%) and one of the fastest internet speeds in the world at 211Mbps.

For such a comparatively small island, Cyprus could be another cloud center to watch. With its forgiving corporate tax rate of 12.5%, and its Cypriot Investment Program affording relatively fast citizenship for foreign investors; the 5 cloud computing startups founded there since 2017 could see some healthy contemporaries spring up alongside them in the very near future.

Which cloud startups have had the most investment?

eStruxture is the largest Canadian-owned network and colocation data center provider and has received the most funding since its inception in 2017. The business has had investments totaling over $919 million from huge investors including the National Bank of Canada.

Dubai-based Kitopi is a service provider for restaurants enabling them to open delivery-only locations and has raised over $800 million in investment since 2018. The brand now operates with a dual strategy, combining cloud kitchen tech with insights from traditional restaurants to help enable more extensive data collection for their customers.

Another UAE-based company, Group 42 (sometimes referred to as G42) has attracted substantial amounts of funding. The Silver Lake-backed business has raised $800 million towards its AI-focused endeavors in its 4 short years of trading.

The year of cloud computing

2017 was the year of cloud computing, with the majority of cloud-based businesses founded in this year than any other from the findings.

The years prior saw many predictions about which startups would reach prominence in the future; with a strong focus on artificial intelligence, virtual reality, and cybersecurity. Within the cloud space, businesses like Cyxtera and Upstack shattered expectations, with the two businesses now estimated to turn over $1.1 billion in revenue collectively.

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