The growth potential of cloud computing and big data analytics will be two prominent investment ideas in the high-tech sector going into 2015, according to portfolio managers at Natixis Global Asset Management (NGAM).
In a market insight piece, Ng Kong Chiat, equity analyst, portfolio manager, at NGAM affiliate Absolute Asia Asset Management, wrote that IT and hardware providers geared towards the long-term and structural growth of the cloud and big data offer an exciting investment theme. He reasoned that with corporate spending on traditional hardware plateauing, customers were instead focussing resources on more cutting edge IT systems, such as social networking, mobile, analytics and the cloud.
Cloud computing refers to storing and accessing data and applications over an internet connection, rather than storing them on in-house hardware. The use of cloud services has become a notable trend among asset managers in recent years on the back of improvements in data security by IT services providers. According to a survey by CEB TowerGroup, more than 71% of asset management firms intend to adopt cloud computing, or increase its usage, by 2017.
Mr. Ursillo said Loomis Sayles held a modestly positive view on the IT sector going into next year, given the maturity it has built over the past decade. He expects IT spending to grow in line with the global economy next year, which has shown signs of slowing down. This will result in a more difficult environment for the traditional hardware, software and networking vendors to thrive, he wrote.