Microsoft Corporation (MSFT), Adobe Systems Incorporated (ADBE) Getting Creative in the Cloud

Conclusion

As the business world continues to shift from physical to digital products when possible, the continued shift of products from perpetual licenses to cloud-based SaaS products is largely inevitable. Some of these services will face competition; an example of this would be Office 365 contending against Google Inc (NASDAQ:GOOG)’s Google Docs or open-source projects such as Libre Office. Other services won’t face quite as much competition due to a relatively small number of competitors as is the case with Creative Cloud (since there are few if any competing products that offer all of the components of Creative Cloud in a single suite.)

Cloud-based services could become major growth drivers for the companies that develop them, however, and for the companies that host them. While there is a major focus in investing communities lately on companies that are expanding into emerging markets, attention should also be paid to those companies that are taking large steps toward leveraging the cloud to their own benefit.

John Casteele owns shares of Microsoft. The Motley Fool recommends Adobe Systems and Amazon.com. The Motley Fool owns shares of Amazon.com and Microsoft.

The article These Companies Are Getting Creative in the Cloud originally appeared on Fool.com and is written by John Casteele.

John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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