The rapid adoption of cloud technologies in the last decade has served as a boon for cloud computing stocks. The technology offers businesses and individuals a plethora of benefits — namely increased scalability, efficiency and lower IT costs. This has been amplified by the emergence of GenAI which spurred a new wave of growth, catapulting cloud computing companies to new heights. 

These benefits alone give cloud computing companies plenty of staying power but the industry is poised for substantial growth. Data shows that the market for cloud technologies currently valued at $0.68 trillion will reach $1.44 trillion by 2029. That represents a compound annual growth rate (CAGR) of 16.4%.

While the cloud computing market is a competitive one, it is largely dominated by a few tech companies. Amazon’s (NASDAQ:AMZN) AWS and Microsoft’s (NASDAQ:MSFT) Azure control over half of the market share for cloud technologies. However, beyond the big names, there’s a host of mid-sized companies that show promise for long-term gains. Here’s a look at three names vying for a piece of the pie.

Salesforce (CRM)

When it comes to cloud computing, Salesforce (NYSE:CRM) is a major player in the space. The company was an early mover in the industry and one of the first companies to dabble in cloud technology. Today, its customer relationship management (CRM) system offers software critical to several industries. This includes several communication channels for marketing and commerce along with data analytics tools. This has led to substantial growth for Salesforce in the last decade. 

Salesforce holds a strong market position with a high-growth business model but its recent earnings were a mixed bag. Earnings per share (EPS) for the first quarter of FY25 came in at $2.44 beating the estimated $2.38 per share. Revenue grew 11% year-over-year (YOY) to $9.13 million but missed analysts’ expectations by $40 million. The company touted macroeconomic headwinds as a major reason for the dip in revenue.

Nevertheless, Salesforce’s long-term prospects remain strong and the dip presents a great buying opportunity. The company has seen consistent sales growth since its public market debut in 2004. Moreover, CRM tools remain a critical component for many organizations and as a leader in the space, demand for its platform will sustain its growth trajectory.  

CRM stock is one of the top cloud computing stocks on the market for investors seeking a long-term play.

ServiceNow (NOW)

ServiceNow (NYSE:NOW) is an enterprise software maker that helps businesses handle large amounts of data with ease. Companies can store their data on its AI-powered centralized platform to support a more collaborative work environment and prevent data silos. Needless to say, the IT giant was a large beneficiary of the emergence of AI which catapulted its growth to new heights. This was fairly evident in its impressive second-quarter numbers. 

ServiceNow delivered several key wins in Q2. Subscription revenues for the period climbed 25% YOY to $2.54 billion. This was largely fueled by the demand for its GenAI cloud platform that secured 11 contracts worth over $1 million. This business will serve as a major growth tailwind in the coming years. Total revenue rose by 24% with earnings at $3.13 per share. Looking ahead, the company anticipates a 20% increase in subscription revenue for the current quarter and a 22% increase for the full year.

With strong financials and plenty of growth prospects, NOW stock has the potential to generate mouth-watering returns for investors in the long haul. Investors seeking a high-reward play will put ServiceNow among the top cloud computing stocks on the market. 

Datadog (DDOG)

Datadog (NASDAQ:DDOG) is a software-as-a-service (SaaS) platform that helps businesses manage their infrastructure through its cloud-based platform. It does this by providing real-time visibility on the company’s servers and databases to help troubleshoot problems before they occur. Like many of its cloud computing peers, Datadog leverages AI and uses its chatbot Bits AI to assess potential issues.

Despite facing macroeconomic headwinds, the company has managed to put up some impressive results over the years. Its CAGR from 2018 to 2023 was 61%. Although it experienced a slowdown in 2023 as it reined in costs amidst declining industry growth, 2024 is shaping up to be a strong year. Revenue in Q1 grew 27% YOY and beat analysts’ estimates, giving investors plenty to celebrate. Looking ahead, the company anticipates continued momentum and expects full-year revenue to fall in the $2.59 billion to $2.61 billion range. 

Datadog’s earnings signal massive upside potential for the company. While the stock isn’t cheap at 69 times forward earnings, its strong market position and solid growth prospects are likely to sustain its growth trajectory. This makes DDOG one of the most compelling cloud computing stocks on the market today. 

On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.