It’s Official: The Cloud Is a Game Changer

Cloud computing is every bit the game changer some investors believe it to be. So says a new survey commissioned by Rackspace Hosting (NYSE: RAX  ) and conducted by Manchester Business School, which found that U.S. businesses cut total IT costs by 26% using cloud computing.

Sixty-two percent of study respondents from 1,300 U.K. and U.S. businesses agreed that cloud computing had helped them boost profits and a whopping 94% of U.S. participants said using the cloud saved them money. Importantly, 92% of start-up companies said using the cloud made it easier to set up operations, a notion widely shared among venture capitalists.

Can Rackspace take advantage of these favorable industry dynamics in spite of talk of a so-called "price war" with its closest competitor, Amazon.com (NASDAQ: AMZN  ) ? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses this question and more in the video below. Please watch, and then leave a comment to let us know what you think.

Amazon may be the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of its competitors'. We'll tell you what's driving the company's growth and fill you in on reasons to buy and reasons to sell Amazon in our Motley Fool premium report. We'll also be providing a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.


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