TRUESHARES

TRUESHARES

CIOs Continue to Prioritize Cyber Security and Cloud Migration in 2023

The tech industry shifted1 from high growth throughout the pandemic to cost control starting in late 2022 and continuing into 2023. As a result, companies and their CIOs are focused on building resilience1 into their operations. Technology is a critical component to weathering uncertainty, responding to labor shortages, and keeping employees satisfied. More specifically, CIOs will continue to prioritize security software and cloud migration this year.

100 CIOs from the US and Europe were surveyed by Morgan Stanley for their 1Q23 CIO Survey. The survey found that in 2023, security software remains the top CIO priority, followed by cloud computing, data warehousing/business intelligence/analytics (DW/BI/Analytics), AI/ML, and digital transformation. In this quarter’s survey, AI/ML surpassed digital transformation from last quarter’s survey.

It is not surprising that CIOs continue to prioritize cybersecurity after cyber attacks increased in 20221 and are expected to continue increasing this year. The CIOs surveyed indicate that security software will receive the greatest IT spend in 2023. Investing in cybersecurity is a great way for companies to build resilience amidst shortages in critical IT skills and labor in general.

In many ways, cloud computing and digital transformation go hand-in-hand. While only 19% of data is stored in the cloud today, CIOs expect 43% of data to be centralized in a cloud data-based warehouse or lake by the end of 2024. Even more encouraging for the sector, the percentage of CIOs expecting to or having already completed data centralization increased from 64% in 2021 to 77% this year.

DW/BI/Analytics and AI/ML add significant resilience for companies across industries. Both tech categories are essential for enabling companies to do more with less while still allowing growth as they continue making cost-conscious decisions this year. Experts recommend1 embracing the latest data mining and analysis tools as well as AI/ML for the sustainability of their businesses, better customer experience, and enhanced employee effectiveness and satisfaction. 

The TrueShares Technology, AI & Deep Learning ETF (LRNZ) provides exposure to a concentrated portfolio of technology companies that are significantly involved in these CIO top priority categories like cybersecurity, cloud computing, data storage and analytics, and AI/ML, among others.

Snowflake, a cloud computing–based data company, is one LRNZ holding. Snowflake is the third-largest cloud data storing vendor (after Microsoft and Amazon) with its market share growing year-over-year. According to the CIO survey, Snowflake is one of the top five companies to watch in 2023 in the cloud computing and DW/BI/Analytics spaces. ServiceNow, another LRNZ holding, was also highlighted in the CIO Survey as a top company to watch in digital transformation and AI/ML. LRNZ holdings also include other top cybersecurity and cloud computing companies like Crowdstrike, SentinelOne, and ZScaler. By investing in the top CIO priorities, companies can understand that they can build resilience for these uncertain times while cutting costs without sacrificing the essentials. We anticipate that cybersecurity and cloud computing will be big winners in 2023.

  1. https://www.cio.com/article/418987/8-top-priorities-for-cios-in-2023.html
Recent Posts

    Request a meeting with our investment team

    433 W. Van Buren Street, 1100-D
    Chicago, IL 60607
    Email: info@true-shares.com
    Phone: 877.774.TRUE

    ©2024, TrueShares, ©2024 TrueMark Investments, LLC. (“TrueMark”).

    Before investing, carefully consider the TrueShares ETFs investment objectives, risks, charges and expenses. Specific information about TrueShares is contained in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.www.true-shares.com. Read the prospectus carefully before you invest.

    An investment in TrueShares is subject to numerous risks, including possible loss of principal. The ETFs are subject to the following principal risks: Authorized Participants, Market Makers, and Liquidity Providers Concentration Risk associated with ETFs; Equity Market Risk; Management Risk; Market Capitalization Risk (Large Cap; Mid Cap, Small Cap Stock); Market Risk; New Fund Risk.

    Individual investors should contact their financial advisor or broker dealer representative for more information on TrueShares ETFs.

    Investment Products and Services are: Not FDIC INSURED / May lose value / No bank guarantee

    All registered investment companies, including TrueShares, are obliged to distribute portfolio gains to shareholders at year-end regardless of performance. Trading in TrueShares ETFs will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.

    TrueShares ETFs are bought and sold through exchange trading at market price, not Net Asset Value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.

    ETF shares may be bought or sold throughout the day at their market price, not their NAV, on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.

    ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF’s NAV. Brokerage commissions and ETF expenses will reduce returns.

    Fund Intelligence Mutual Fund Industry and ETF Award shortlists and winners are comprised of individuals and firms who have submitted entries or been nominated via the online submission process, as well as through recommendations from leading market participants. Fund Intelligence Mutual Fund Industry and ETF Award judges will use the submitted application material, as well as any uploaded supplemental information, to determine which firm, individual or product they believe to be the most suitable and deserving winners for each category. Fund Intelligence Mutual Fund Industry and ETF Award judges have the discretionary power to move nominations into alternative categories that they think may be more suitable. Fund Intelligence Mutual Fund Industry and ETF Awards were decided by an independent panel of 20 judges with expertise across the asset management space.

    TrueShares ETFs (the “Funds”) are registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940. Foreside Fund Services, LLC is the distributor for the Structured Outcome Funds, LRNZ, ERNZ, FLDZ, DIVZ, RNWZ, and SPCZ.  Paralel Distributors LLC is the distributor for QBER and QBUL.  Foreside Fund Services, LLC, Paralel Distributors LLC, and TrueMark Investments, LLC. are not affiliated.  

    TrueMark Investments, LLC, not an affiliate of Foreside Fund Services, LLC., is the investment advisor to the Funds and receives a fee from the Funds for its services.

    TrueShares ETFs are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this website should be considered a solicitation to buy nor an offer to sell shares of any fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.