Coronavirus caused an explosion Adoption of remote work software, As companies have acquired the necessary tools to continue their normal operations. Collaborative and workflow solutions such as Zoom (ZM)Microsoft teams (MSFT), Slack (now owned by (CRM)), And DocuSign (DOCU) In the midst of this great demand, he is rich in money.

As hybrid workplaces become more and more popular, we anticipate the development of a set of remote-assisted technology in the coming years. Within our coverage, we expect the strongest to be strong and the biggest beneficiaries so far to be the biggest winners in the next two years.

Looking forward, we anticipate not only optimism about the ongoing use of remote work software, but also the acceleration of digital transformation. Finally, we will look at the cost of digital transformation at a combined annual growth rate of 16% between 2020 and 2025, generating $ 1.8 trillion in five years.

Each leading technology company describes digital transformation in a different way, but we describe it as simply using software to update business processes. We believe that the critical concept involves both the technology component and the business process or operation element.

Software costs 6 ways to accelerate digital transformation

We hope that the next few years will be exciting for software providers and their investors, as the cost of software is changing in different vectors and will benefit from this evolution. Digital transformation has been a good global trend for the software industry, but COVID-19 has accelerated this trend recently and perhaps in the medium term.

We expect digital-transformation costs to improve over the next six years.

  1. As the efforts of modernization and digital-transformation continue and even accelerate, the demand will probably drag on in the next two years.
  2. Overall, stable IT budgets will see overall growth in 2021, although IT spending growth will typically last longer.
  3. Software costs increase with IT budget mix. This trend is not necessarily new, but we expect it to continue over the next five years. We also expect the software to grow significantly from GDP over time because it solves critical business problems, generates high revenue and is highly profitable for investment.
  4. In some cases, the cost of the software is pushed to functional enterprise environments, which can hide real IT costs. We hope that this will help ease the pressure on IT budgets that may arise in our second and third points above. A business unit can use the preferred software platform and charge for it. In this case, the additional cost may increase the price of the goods sold for that unit. In other words, not all IT costs are included in the IT budget.
  5. The explosion in remote-adapters translates into retention and expansion for customers who implement those solutions. For example, we have seen good monitoring of Zoom and DocuSign customers during the depth of the Corona virus-locked locks.
  6. He immediately addressed issues related to hereditary systems, and the CVD-19 epidemic eventually led to the acceleration of digital-transformation efforts.

This digital transformation touches on the five main pillars listed below.


The use of cloud computing allows a company to reduce or reuse the number of IT heads as it moves its infrastructure to more advanced technology building blocks. This decision will reduce IT costs by lowering the cost of hardware and lower continuous maintenance requirements, which will allow IT head counting or redistribution of staff. It also brings improved IT performance in many aspects, the most important of which is increased flexibility, faster performance and performance and better security.’s (AMZN) Amazon Web Services is widely regarded as a leader in the cloud. We see Microsoft Azur as another legal competitor, with Alphabet (GOOGL) Google Cloud Forum Far Third. However, over time, it seems that Google or another competitor will be able to make a real competitive point by expanding its capabilities and expanding its footprint. We think the market is very big and can accommodate three big competitors and maybe a few small competitors.

Workflow and automation

The most widely used software platforms feature code or low-code behavior to create basic and repetitive tasks automatically – and automation helps users work efficiently, allowing enterprise customers to “do a lot less.” This can be seen as an improvement in staff competency or cost savings – – if the company is hiring head counters elsewhere or less – strict cost savings or easy flexibility, which is what we see as a driving force in modern strategic IT. Decisions.

We offer Salesforce as a leader in Home Sales Power Automation or SFA. SFA Advanced Customer-Relationship-Management Software automatically adopts new features and repetitive tasks, freeing users to focus on their priorities, selling and generating revenue.

Customer experience

Customer experience is well defined with some obvious important competitors such as Salesforce; It is also rapidly evolving with the emergence of new tools, and encourages the preservation of existing sources of revenue and the sale of existing infrastructure. We remind investors that retaining a software provider, rather than recruiting a new customer, emphasizes the importance of customer retention in customer experience.

There is also a component that improves customer experience, which we see as a result of customer demand. In consumer-facing businesses, this is on the rise online and mobile, and not only basic e-commerce but also customer service includes text messaging, voice calling, Facebook or chatting in the way the customer chooses.

We see customer relationship management, marketing, e-commerce and customer service as an integral and fundamental extension of each other, so we integrate them all into our discussion. That said, we expect customer experience software to generate over $ 100 billion in annual revenue in a few years.

Artificial Intelligence and Analysis

Data is the lifeblood of the modern enterprise, and decisions are based on data measured by an ever-increasing set of key performance indicators. Using more sophisticated tools, companies are better at answering questions about their jobs and customers. Artificial intelligence, or AI, and analytics tools can help you make predictions about which products to show users on e-commerce websites, as well as recommend solutions to customer service situations.

They are not just for powerful platforms. Most of the companies on our cover – from big cap to small cap – have some kind of AI, machine learning or analysis available to their users. We think AI and analytics can be integrated into other areas such as automation, SaaS modernization, or cloud computing.

According to our estimates, the AI ​​and analytics software market is expected to reach $ 50 billion by 2020, and by $ 20 billion by 2025.

SaaS modernization

Software buyers not only want software-like service delivery, they also want the bottom line to be modernized, using a more intuitive user interface, clean and simple source code, and a better application programming interface or APIs. . At this last point, we would like to emphasize that we have heard for a long time that software buyers need flexibility and seller locks. APIs allow applications to communicate seamlessly and simplify functionality from other providers. Today, we see software providers making extensive use of flexibility to provide customers, which ultimately creates better connections and improves customer retention.

A.D. SaaS has increased its market share from 0% of software supply in 1999 to 22% in 2020 – and we do not see any situation where SAS will not stay in this direction and will eventually become the majority of software. As SaaS is popular, we believe that users and providers will continue to be strengthened around SaaS delivery until all software is in use.