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Current predictions show the cloud computing industry growing at a rapid pace in the coming years. Much of this growth stems from novel approaches to cloud technology, such ashybrid clouds, multi-clouds, and edge computing. These developing technologies now affect several sectors and have led to the growth of several under-the-radar cloud computing stocks.

Traditional cloud computing applications include e-commerce, healthcare, and entertainment, but with the technology advancing, several custom applications are developing. As such, newer cloud computing companies are flourishing in their respective niches, producing potentially lucrative stocks to keep an eye on.

However, as a general disclaimer, the stocks mentioned in this article are currently on the growth path. Their market capitalization and overall maturity are low relative to the cloud computing ventures of tech giants like Microsoft and Amazon. With this in mind, here are three companies exploring new frontiers in cloud computing that could lead to some serious growth.

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By specializing in cloud hosting and Infrastructure-as-a-Service (IaaS),DigitalOcean Holdings (NYSE:DOCN) has carved out a niche among developers and startups. The company currently offers several technical derivations of cloud computing such as virtual machines and custom-managedKubernetes services for containerized applications.

One particular service the company offers that helps it stand out is itsApp Platform, monetized as a platform-as-a-service. This service allows developers to build and deploy applications without having to manage any server-side integration. DigitalOcean further sweetens the deal for small businesses and independent developers by offering hourly billing to allow customers to pay for services as they need them.

Furthermore, with AI making software development more and more accessible to smaller companies, demand for DigitalOceans streamlined services could increase. I believe DUOTs niche and targeted products give it a significant runway for growth, should the stars align for it.

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Another of the under-the-radar cloud computing stocks to watch isDuos Technologies Group (NASDAQ:DUOT). Though not as new as other stocks on this list, the company tailors its cloud solutions to the rail industry. By committing to designingproprietary AI and technologies around inspecting railcars, DUOT has been able to continue growing alongside global rail projects.

However, this growth is not without its costs, leading the company to operate at a loss last year. DUOTs technology has become the industry standard for railway safety and inspection. Thus, the company was entrusted withscanning over 8.5 million railcars in 2023.

Investors should be diligent when considering a cloud computing stock like DUOT. Its future profitability remains tied to the regulation of rail safety standards across the US and beyond. As such, should the government standardize DUOTs services as mandatory for all railcars in the US, the companys growth could explode.

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Last but not least, one of the niche cloud computing stocks to consideris Fastly (NYSE:FSLY), which hedges its bets on edge computing. Dubbed theEdge Cloud Platform, Fastly has built a global server network that is strategically positioned closer to users than traditional data centers.

With this proximity, the company offers customers reduced latency since data travels shorter distances, resulting in faster loading and responsiveness. As such, the companys primary customers are providers of entertainment, e-commerce, and fintech. Fastlys edge computing can process robust data at high speeds, allowing for everything from financial calculations to high-definition streaming.

Though the company has not consistently reported net income yet, the potential is strong.

FY23 saw a 56.6% increase in net profit margin which brought the company closer to profitability. If Fastly can grow revenue in 2024 past the tipping point, its valuation could see a significant increase.

On the date of publication, Viktor Zarev 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.comPublishing Guidelines.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.

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3 Under-the-Radar Cloud Computing Stocks With a Massive Growth Runway - InvestorPlace