Clearwater International’s index of leading Cloud experts

 

Cloudex full graph Jun 17

Cloudex is an index of leading global Cloud technology businesses operating in software, services, hardware and infrastructure. It focuses on the financial performance and valuation of these companies versus the population of more general technology vendors.

Since we started to measure this index on 1st January 2010, Cloudex has outperformed both the NASDAQ and FTSE Techmark indices with the market recognising that Cloud-based propositions hold the greater promise. Since the markets faltered and the recovery stalled, we have seen Cloudex follow the trend of wider technology stocks but maintained at a higher level.

Our hypothesis at Cloudex is that over time the gap between Cloudex and the wider indices will close as cloud computing increases its penetration into that wider population of technology companies. The efficiency and improvements brought over time by SaaS, VOIP, virtualisation and other manifestations of cloud computing will see technology stocks generally outperform other sectors as this revolutionary period unfolds.

In 2013, we launched our Cloudex Awards programme with the aim of highlighting the top 20 independently-owned Cloud technology businesses.The Awards are based on more than simply turnover or profit growth. The panel of industry experts take into account metrics such as growth prospects, innovation and global competitiveness.

We would be delighted to hear your own views, whether you think your company should be listed in Cloudex or if you see cloud computing as dotcom 2.0.

How we calculate the index

Cloudex measures the performance of the top global Cloud companies relative to the NASDAQ 100 and FTSE Techmark All-Share indices. Cloudex companies are selected, based on market capitalisation, from a broader feeder index of approximately 90 Cloud companies. New Cloud companies are regularly added to this feeder index.

Cloudex is a market-capitalisation-weighted index calculated with reference to the market value of the outstanding shares for each of the constituent companies. The formula used for calculating the indices is straightforward:

Total market value of all Cloudex companies / Latest Cloudex divisor = Cloudex Value

However, determining the capitalisation of each constituent company and calculating the capitalisation adjustments to the index is more complex. The Cloudex divisor is an arbitrary number chosen at the starting point of the index to fix the index starting value. We launched Cloudex on 1 January 2010 with a starting value of 100. The divisor is then adjusted for only the most simple capitalisation amendments, such as additions and deletions of the constituents, which enables Cloudex to remain comparable over time. More complex adjustments to the divisor such as reflecting free float factors, or dividends are not undertaken.

Back to the Cloudex homepage.