Digital transformation (DX) is a somewhat nebulous term that refers to the ongoing need to keep pace with technology. Organizations are constantly under pressure to operate more efficiently, work more productively, and provide a better customer experience. That often means replacing outdated infrastructure and systems, and those changes are expensive. Global DX spending will reach $2.8 trillion per year by 2025, up from $1.8 trillion in 2022, according to Statista.
Companies like Snowflake ( SNOW -6.75% ) and Zscaler ( ZS -5.35% ) are well-positioned to benefit from that DX tailwind, and both stocks could make you richer by retirement, whether that's in five years or a few decades. Here's why.
1. Snowflake: Big data analytics
DX has made the corporate IT ecosystem more complex. Businesses generate a tremendous amount of data each day, but in many cases, the proliferation of software and connected devices has resulted in a tangled mess of information. Data is frequently stored across disparate systems, both on-premise and in the cloud, making it difficult to use that data productively. That's where Snowflake can make a difference.
The Snowflake Data Cloud helps clients manage and make sense of siloed data sets. Businesses have traditionally relied on a variety of point solutions, such as data engineering tools for ingestion, data lakes for storage, and data warehouses for analytics, but Snowflake provides all of that functionality from a single platform. The Data Cloud also supports the secure sharing of data and simplifies the development of data-driven applications. Better yet, Snowflake is infrastructure-neutral, meaning it's designed to work across all three major public clouds, giving it an edge over Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud.
2. Zscaler: Cybersecurity
Cyberattacks are occurring more frequently. A recent study from Zscaler indicates that corporate and cloud infrastructures are more vulnerable than ever, and DX is the culprit. The rise of the mobile workforce, the adoption of cloud computing, and the sheer number of connected devices have made corporate networks more susceptible to hackers. Fortunately, Zscaler can help.
Its cloud platform (the Zero Trust Exchange) accelerates and protects corporate networks and applications, whether those resources exist on-site or in the cloud. Zscaler also provides tools for digital experience monitoring, helping IT teams keep their infrastructure in working order. Better yet, with over 150 global data centers, the Zero Trust Exchange is the world's largest security cloud, which theoretically means better performance and more effective threat detection for clients. On that note, research company Gartner has recognized Zscaler as an industry leader for the last 11 years.
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Courtesy Grizler.com
