The Big 5 in Cloud Infrastructure

[Pages:2]O'SHARES STRATEGY SERIES

may 2019

The "Big 5" in Cloud Infrastructure

? Growth in Cloud Infrastructure Services: The worldwide cloud infrastructure market grew from ~$55 billion in 2017 to over $80 billion in 2018, representing a growth rate of ~46%.

? "Big 5" in Cloud: The "Big 5", Amazon, Microsoft, Google, Alibaba and IBM, had combined revenue of ~$52 billion in 2018, up ~60% from 2017.

? Increasing Market Share: 4 out of the "Big 5", Amazon, Microsoft, Google and Alibaba, increased their market share from ~54% in 2017 to over 60% in 2018. IBM's market share decreased to under 4% from almost 5%.

Worldwide Cloud Infrastructure Spending Amazon, Microsoft, Google and Alibaba Increase Market Share

2017

2018

40.8%

31.5%

35.2%

31.7%

13.5%

6.4% 4.7% 3.0%

3.8%

8.5%

4.0%

16.8%

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Company

Amazon (AWS) Microsoft (Azure) Google Alibaba IBM Others Total

2017 ($ Billions)

$17.3 $7.4 $3.5 $1.7 $2.6

$22.4 $54.9

2018 ($ Billions)

$25.4 $13.5

$6.8 $3.2 $3.1 $28.3 $80.3

Growth

46.8% 82.4% 94.3% 88.2% 19.2% 26.3% 46.3%

Source: Canalys, data as of 3/31/2019. For informational purposes only and does not represent the O'Shares ETFs.

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O'SHARES STRATEGY SERIES

may 2019

Related Content: Internet & E-commerce

O'SHARES STRATEGY SERIES

may 2019

E-commerce Adoption: U.S. vs. China

? E-commerce Adoption: E-commerce sales in the U.S. represented nearly 9% of total retail sales in 2018 vs. China at over 23%.

? Growth Trend: E-commerce as a percent of total retail sales in the U.S. has grown ~44% since 2014 vs. China at over 120%.

U.S. - Total Retail Sales

Sales ($ Billions)

$6,000 $5,000 $4,000 $3,000 $2,000 $1,000

$0

$4,851

6.1% 2014

$5,135

$5,379

$5,608

6.6% 2015

7.2% 2016 EE--Ccommerce

8.0% 2017

$5,814

8.8% 2018

Sales ($ Billions)

$6,000 $5,000 $4,000 $3,000 $2,000 $1,000

$0

$4,227

10.6% 2014

China - Total Retail Sales

$4,639

$4,789

$5,629

12.9% 2015

15.5%

2016 EE--Ccoommeerrce

19.6% 2017

$5,539

23.6% 2018

Source: Bloomberg, data as of 3/31/2019. For informational purposes only. Not meant to represent the Fund. Past performance does not guarantee future results.

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E-commerce Adoption: U.S. vs. China

O'SHARES STRATEGY SERIES

april 2019

U.S. Digital Advertising: Soon To Beat All Traditional Forms

? Digital Ads Forecasted to Surpass Traditional Media: Digital ads in the U.S. are estimated to surpass TV, radio and print combined in 2019.

? Growing Share of the U.S. Ad Market: Digital ads are estimated to grow nearly 60% to $172 billion by 2021, representing 62% of the total U.S. ad market compared to 49% in 2018.

? "Big 4" in Digital Ads: Google, Facebook, Amazon and Microsoft made up an estimated 70% of the market in 2018. Digital Ads to Surpass All Traditional Forms

Ad Spend ($ Billions)

$200 $160 $120

$80 $40

$0

$115 $109

$129 $109

2018

2019e Traditional Ad Spend

$151 $107

2020e Digital Ad Spend

$172 $104

2021e

4 Companies Lead Digital Ads Est. Market Share - 2018

29%

38%

4% 7%

22%

Google Facebook Amazon Microsoft Other

Source: Recode and , data as of Feb. 2019. The above includes discussion about the estimated growth of a certain sector, is for informational purposes only and does not represent the Fund. It is impossible to predict future growth and actual results may vary.

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U.S. Digital Advertising: Soon To Beat All Traditional Forms

O'SHARES STRATEGY SERIES

march 2019

Strong E-commerce Sales Growth: U.S. vs. China

? E-commerce Sales: E-commerce sales in the U.S. totaled $513 billion in 2018, while China recorded more than 2x that value at $1.3 trillion.

? Growth Trend: E-commerce sales in the U.S. has grown more than 70% over the last 4 years vs. China at ~190%.

U.S. E-commerce Sales: Over 70% Growth

Sales ($ Billions)

$600 $500 $400 $300 $200 $100

$0

$297

72%

$339

$388

$449

2014

2015

2016

2017

China E-commerce Sales: Over 190% Growth

$513 2018

Sales ($ Billions)

$1,400 $1,200 $1,000

$800 $600 $400 $200

$0

$449 2014

191%

$598

$743

$1,103

$1,309

2015

2016

2017

2018

Source: Bloomberg, data as of 2/28/2019. For informational purposes only. Not meant to represent the Fund.

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Strong E-commerce Sales Growth: U.S. vs. China

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