Hosting/Cloud Index: Update

Back in December, 2009, I proposed an index of hosting and cloud providers, and posited that these sample portfolios would be an excellent gauge of the market's perception of the state of the business. I also made an update in December of 2010.

I thought I'd make an update again, and review the state of the business.  Also, it would seem that others are adopting the same idea, as I was recently reminded by Software Advice.  Good to see that these types of metrics are being adopted...hopefully they cut through some of the vendor hype.

Now, on with the statistics.

First, I created an index of a superset of publicly-traded hosting providers, some of whom also provide cloud computing resources. My only litmus test was that these were *not* SaaS providers, and that they provided hosting/IaaS services as their primary business. The performance was compared against the NASDAQ composite, and has been quite positive. The large increase in index price was primarily due to Verizon's acquisition of Terremark for a hefty premium.

Next, I took a subset of the providers who solely claimed to provide cloud-computing services.

As I had suspected, this index has vastly out-performed the NASDAQ - my supposition being that the market is placing a higher premium on any business conducting "cloud"-related business. 

The market would appear to still be going strong, and I'll continue to update progress every few months.