In the Tri-Valley, the presence of the national labs provides the research draw while successful industry leaders based in the region have created a clustering effect. The cloud-tech industry growing around Workday is a prime example. We believe that technology, and cloud-based services in particular, will continue to be a dynamic and profitable sector in the Tri-Valley.
Cloud-related technology has experienced exceptional growth over the last eight years, as both developers and IT managers have shown a preference for the scalability, mobility, and agility of on-demand deployment. In 2008, the total market cap of cloud companies was less than $25 billion; in 2017, it surpassed $300 billion.25 Market research firm IDC estimates that cloud-related technology accounted for approximately one-third of all IT infrastructure spending in 2015 and projects that cloud-related spending will comprise over one-half of the IT infrastructure market by 2019.26 Bessemer Venture Partners (BVP) produces a cloud computing index and forecasts the index will hit $500 billion in market cap by 2020. BVP predicts that public industry cloud companies like Pleasanton-based Veeva Systems, are primed for a “winner takes most” dynamic.