Insights
Find the latest news and insights from TrueShares below.
How Cloud Migration is Creating a Tech Inflection Point
The buzzwords that have graced headlines in the tech world over the past year -- Artificial Intelligence, generative AI, machine learning -- are all made possible by another mega-trend happening almost behind the scenes. Though more than a decade in the making, cloud migration is creating a technology inflection point1.
Cloud migration refers to the transfer of applications, data, security, and infrastructure from on-site (or on-premise) servers to a cloud computing environment. Its proliferation stands to accelerate growth and other technological advancements for everything from chatbots to Internet of Things (IoT).
Before the cloud2, companies relied on on-premise data storage and computing mainframes, but only the largest companies with excess capital could afford such infrastructure. By the 1960s2, computing systems were leased out to hundreds of companies who couldn’t afford their own in-house systems. Eventually, however, computing infrastructure became affordable enough for more companies to invest in their own.
Salesforce is said to have created the first Software as a Service (SaaS)3 cloud application with its customer relationship management (CRM) system in 1999. The government and finance industries were the first adopters of cloud computing, which took the form of a shared resource model for file storage, CRM systems, and accounting. In the first decade of the 21st century, large companies like Amazon, Google, Microsoft, and even NASA, deployed their own cloud computing systems2. Then in 2020, the COVID-19 pandemic urged many companies to accelerate their migration to the cloud to accommodate remote and hybrid work requirements4. Since the pandemic, customers and employees have maintained their expectations of high performance digital experiences.
As of Q2 20235, Amazon, Microsoft, and Google control two-thirds of the cloud computing market, with eight of the largest providers controlling 80%. Cloud computing infrastructure services brought in a cumulative total of $65 billion in Q2 2023, a $10 billion increase over Q2 2022. The cloud computing market is an estimated $247 billion opportunity5. It may be surprising, therefore, to know that a large majority6 of companies are still using on-premise servers.
The cloud migration mega-trend has impacted companies of all scales, allowing a diversity of sectors and industries to migrate their data to the cloud. Companies young and old are often motivated4 to migrate to the cloud because it offers greater flexibility, speed, risk reduction, affordability, and performance.
So while AI and chatbots are the tech buzzwords of the moment, having advanced rapidly over the last year, they may not have gotten to this point if they had been limited by the up-front costs, rigidity, lag time, and risk of on-premise infrastructure. We think it’s safe to say that we are still in the early stages of cloud migration, with the most significant changes to the tech industry yet to fully materialize.
The cloud computing inflection point is working in tandem with advancements in other technologies, from chips and semiconductors to security and algorithms. These behind-the-scenes support technologies form the basis of our Technology, AI, and Deep Learning ETF (LRNZ), which is designed to provide thematic exposure to a concentrated portfolio of innovative technology companies with solutions for tomorrow’s AI needs.
The tech landscape is constantly changing, so knowing how and where to invest is crucial. Learn about more inflection points and get your AI questions answered with our Investor's Guide to Artificial Intelligence.
- https://www.investopedia.com/terms/i/inflectionpoint.asp
- https://www.pulsion.co.uk/blog/the-history-of-cloud-migration/
- https://www.ascendcloudsolutions.com/cloud-computing-history-part-2-the-makings-of-the-modern-cloud
- https://www.techtarget.com/searchcloudcomputing/definition/cloud-migration
- https://www.statista.com/chart/18819/worldwide-market-share-of-leading-cloud-infrastructure-service-providers/
- https://www.ciodive.com/news/on-premise-servers-persist-in-98-of-businesses-even-with-cloud-hype/549643/#:~:text=Cloud%2Dbased%20infrastructure%20commands%20industry's,are%20not%20soon%20going%20away
Chatbots: a computer program designed to simulate conversation with human users, especially over the internet.
Internet of Things (IoT): the interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data.
Software as a Service (SaaS): a method of software delivery and licensing in which software is accessed online via a subscription, rather than bought and installed on individual computers.
The TrueShares AI & Deep Learning ETF (AI ETF) is also subject to the following risks: Artificial Intelligence, Machine Learning and Deep Learning Investment Risk – the extent of such technologies’ versatility has not yet been fully explored. There is no guarantee that these products or services will be successful and the securities of such companies, especially smaller, start-up companies, are typically more volatile than those of companies that do not rely heavily on technology.
For a list of current fund holdings, please visit www.true-shares.com/lrnz
Thought Leadership,
Straight to Your Inbox
Disclosures
©2025, TrueShares, ©2025 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: The Fund is a recently organized, non-diversified management investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Additionally, the Adviser has not previously managed a registered fund, which may increase the risks of investing in the Fund.
Depositary Receipts Risk. American Depositary Receipts (“ADRs”) have risks similar to those of foreign securities (political and economic conditions, changes in the exchange rates, etc.) and entitle the holder to all dividends and capital gains that are paid out on the underlying foreign shares.
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. The fund is distributed by Paralel Distributors LLC, Member FINRA. Paralel is not affiliated with TrueMark Investments, LLC. TrueMark Investments, LLC, is the investment advisor to the Funds and receives a fee from the Funds for its services.
TrueMark Investments, 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.