5 actions to play the main trends of the software industry in 2022
The software industry is expected to benefit from a few major secular trends that will likely continue to drive growth in 2022, a Rosenblatt Securities analyst said in a recent note.
These age-old trends are likely to remain in place for at least several years until the majority of the company’s IT infrastructure, including applications and data storage, has been modernized and re-platformed to the cloud, according to the analyst. Blair abernethy.
3 major trends benefiting the software industry
Accelerate digital transformation: The digital transformation that has been accelerated by the COVID-19 pandemic will continue to accelerate, the analyst said. This includes developments such as further automation of IT processes and the use of robotic process automation to fill system gaps, cloud-based data storage and data engineering workflows, digital collaboration capabilities between companies and their extended supply chains, next-generation e-commerce capabilities, IoT and wider application and distribution of analytics, he added.
Switching to cloud architecture: Companies are rapidly rewriting and developing next-generation cloud native applications that can take full advantage of large-scale containers, microservices, functions and serverless technologies, the analyst said.
This is continued to enable applications to take full advantage of large-scale containers, microservices, functions and serverless technologies, he added.
“Data warehouses are re-platforms to the cloud to reduce costs, accelerate access, scale, share and build next-generation data-driven applications,” the analyst wrote. in the note.
AI proliferation: AI / ML will continue to evolve rapidly, automate and further integrate into enterprise computing, said Abernethy.
AI is likely to be a key long-term driver of the software applications value proposition and innovation, he added.
Related Link: 3 Software Choices Ready to Accelerate Growth in 2022
Rosenblatt’s Top Software Picks for 2022:
Altair Engineering Inc. (NASDAQ: ALTR): Altair is expected to benefit from the convergence of engineering simulation, data analysis / AI and high performance computing, said Abernethy.
The analyst has a buy rating and a price target of $ 85 for Altair.
Alteryx, Inc. (NYSE: AYX) is a long-time leader in data analytics and is set to significantly expand its product offering to the cloud in 2022 and expand its AI / ML solution, the analyst said. .
Abernethy has a buy rating and a target price of $ 100 for Alteryx.
Autodesk, Inc. (NASDAQ: ADSK): Autodesk is at the forefront and well positioned for the digitalization of the global ACS industry, leveraging its comprehensive offering of BIM, Design, Construction Cloud and Digital products Twin, said Abernethy.
The analyst has a buy rating and a target price of $ 340 for Autodesk stocks.
Elastic SA (NYSE: ESTC): Elastic, the analyst noted, is benefiting from digital transformations and the shifting of corporate IT workloads to the cloud, which is driving demand for its core research business, Abernethy added.
The analyst has a buy rating and a target price of $ 185 for Elastic stocks.
Splunk Inc. (NASDAQ: SPLK): Splunk is a long-standing surveillance software leader with a rapidly growing cloud business, and is orienting its customers towards its next-generation cloud-based observability and security solutions, Rosenblatt said .
“We expect Splunk to hire a new CEO in 1H22 and effectively complete the transformation of its business model by the end of 2022, which should lead to faster growth in revenue and cash flow,” the company said.
Rosenblatt has a buy rating and a target price of $ 185 for Splunk shares.