NCNO - Macquarie cites themes and picks for coming decade amid 'paradigm shift' in cloud software

"The way business is done changed in 2020 and we do not believe it is going back," Macquarie Research says in a new report pointing to sweeping change affecting the next 10 years of cloud software and platforms. The paradigm shift necessitated by the COVID-19 pandemic means that businesses "must be cloud-first to support durable and sustainable workforce changes"; the firm says cloud spending has been strong, and it expects that to accelerate in 2021 and beyond as leaders expand their presence while laggards speed up spending to catch up. Public cloud spending should reach about $585B by 2024, it says, with $305B of estimated new spending vs. 2020. Macquarie looked into valuations to "sanity-check" the large multiples seen in tech. "We find a ~59% premium for Rule of 40 execution, and we detail a reasonable DCF for a hypothetical software company" to illustrate how a 30x multiple of enterprise

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Macquarie cites themes and picks for coming decade amid 'paradigm shift' in cloud software