Quick Bite | Transformative structural trend in software

In April 2020, Microsoft CEO Satya Nadella famously said, “We have seen two years’ worth of digital transformation in two months.” He was right. As the world went into lockdown, companies quickly facilitated remote working systems, stores built online sales systems, and fancy restaurants joined food delivery apps. In 2020, video meeting minutes on Zoom rose 31-fold to an annualised 3.2 trillion minutes and the gross value of sales on Shopify’s ecommerce platform rose 96% year on year to USD120 billion.

Three years on, as economies around the world have reopened, and “normal” starts to return, companies have taken stock of their varied digital initiatives, and to an extent software growth has slowed, but only following an incredible growth spurt.

Source: Robeco

According to technology market analysis firm IDC, Software as a Service (SaaS) revenues expanded at a compound annual growth rate of 27% over the last five years. IDC expects this growth to decelerate to “only” 20% over the next four years.

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