Industry Classification of Cloud Computing

Hard Industry And Company Analysis Industry Classification

As an equity analyst, you are tasked with classifying companies within the technology sector. One of your colleagues argues that cloud computing companies should be classified under traditional software due to their reliance on underlying software systems. However, another colleague believes that cloud computing represents a distinct industry category given its unique business models and service delivery methods.

In light of this debate over industry classification, which of the following options best reflects the characteristics of the cloud computing industry?

Cloud computing is primarily classified under the software industry due to its dependence on software technology.

Cloud computing should be classified in the technology sub-sector due to its unique service delivery and capacity models.

Cloud computing is a hybrid industry combining elements of hardware and software classifications.

Hint

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