Amazon's Amazon Web Services or AWS is the leader in cloud computing services with its approximately 30% market share. Microsoft is with circa 17 % cloud computing market share, Alphabet, Google, producer, is ranked third in cloud computing.
Cloud computing is the electrical grid of our modem information technology society. Long time ago many corporations were afraid to delegate the production of electricity which is still critical to production, so they had their own electricity generators. Yes, most companies nowadays also have their own electricity generators, but they serve mainly for back-up.
GitLab is an interesting niche player in cloud computing's mainstay Infrastructure as a Service. or IaaS. Goldman Sachs, Siemens and NVIDA already use GitLab's services. In short, the one who controls the software coding process will control the cloud computing infrastructure and GitLab has a significant edge in this.
Yes, the stock market listed GitLab is currently overvalued by most valuation metrics. But GitLab's advance has revolutionary potential which makes a 5-7 year call option on GitLab's stock seem severely undervalued.
Microsoft acquired the pioneer in hosted software development GitHub for 7.5 billion USD in 2018. But Microsoft is a large corporation, usually with slow inertia, slow to react to changes and slow to adapt. GitLab, on the other hand is an agile, quick, innovative, lean startup, be it valued into billions of USD now.
Yes, GitLab's founders have some dubious moments in their autobiographies, but when it comes to building an innovative IaaS startup I think the facts speak for themselves.
So GitLab's value is option like. It could be said that GitLab has unrealised potential. Huge, at that. Many people say that the one who controls information controls everything. And GitLab is on the way to be a large player in the production of software and software just stores, processes, analyses and outputs information. Guiding hardware as a result.
In short, I am of the opinion that GitLab is a rising technology star, which could reach a market capitalisation of 100 billion USD in 10 years, if management executes right, the cloud business is not over-regulated and if a new bright tech startup does not out-innovate severely GitLab.
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