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Is the cloud industry witnessing herd behavior?INTL

Is the cloud industry witnessing herd behavior?

We are witnessing two major announcements in the cloud industry — Kaltura and DigitalOcean have filed to go public (separately, not together, just to clarify).

On one hand, Kaltura, which is known for its Video Experience Cloud and boasts around 1,000 customers (including 25 of the Fortune 100 firms), plans to raise up to $100m in its upcoming IPO. On the other hand, DigitalOcean, which is a cloud computing services provider, aims for a similar valuation once its shares hit the NYSE.

Both announcements come amid a major IPO fever in the tech world, which is likely boosting the companies’ valuations — so why not take advantage? We know we certainly would!

why it matters
The cloud industry has always had a tough hill to climb due to the debate around cybersecurity and data privacy; however, it experienced an uptick in popularity during the pandemic. This type of “herd behavior” will only push more companies in the sector to take advantage of the current optimistic IPO market – especially whilst demand for their products remains trending so long as the pandemic lingers around.