Faced with pandemic-fueled disruption, many organizations cut spending on information technology last year to keep their businesses afloat. However, as 2021 gets under way and the effects of COVID-19 and related economic lockdowns ease, IT spending is coming back — and cloud computing is accounting for an increasing share of IT budgets. All indications are that another decade of torrid growth lies ahead for this increasingly important industry.
With that in mind, I think Anaplan (NYSE: PLAN), Medallia (NYSE: MDLA), and salesforce.com (NYSE: CRM) would make timely stock purchases right now.
Of the some $3.75 trillion tech researcher Gartner (NYSE: IT) expects to be spent worldwide on IT in 2021 (a 4% rally from 2020), enterprise software could be a key area of growth. Software is an intangible asset, and is easy to switch off when an organization is trying to control how much cash is leaving its coffers. But as projects get fired back up again in the wake of 2020, software will be just as easy to turn back on and deploy again. Gartner thinks enterprise software will outpace IT spending growth overall, with a more-than-7% increase in the year ahead.