The digital transformation is certainly underway.
Technology is changing and companies of all sizes are embracing it. Small businesses are deploying lightweight applications to grow revenue and gain share. Larger enterprises are replacing legacy systems with more efficient solutions from cloud-native vendors. And even massive and notoriously slow-moving industries like health care, banking, and insurance are keen to innovate more quickly and become more efficient in today’s digital world.
All of this is great news for investors. More efficient companies are more profitable and are able to hand out those rising profits to their shareholders.
But where do the greatest opportunities in the digital transformation lie? Should investors look to the smaller, pure-play companies who are enabling bigger-trend movements such as data-centric AI or DevOps? Or is there a greater opportunity to invest in larger companies who are capitalizing on these movements to re-align their existing businesses? And are all of the things taking place in the world — from the lingering impacts of COVID, supply chain disruptions, or fears of a global recession — having any impact on how these exciting new technologies are actually getting deployed?