The fundamentals for cloud software continue to be excellent. Morgan Stanley released their quarterly CIO survey today. Highlights below:

1. Growth expectations for CIO's budgets are rebounding faster than expected, with the largest growth coming from Software budgets

2. Expectations of software spending growth in 2021 saw material upward revisions from 2.6% in their Q4 survey to 4.8% in the current survey

3. The top 3 items on CIOs priority list are digital transformations, cloud computing, and data / analytics (all software focused)

4. "Data consolidating in the cloud" is listed as a key focus area. 64% of CIOs expect to begin a data consolidation effort into a cloud based data warehouse or lake over the next 3 years, vs only 20% reporting a cloud-based consolidation initiative in place today

5. Security Software and Digital Transformation were described as the most defensible IT projects, and least likely to get replaced

The roaring 20's are here...but for cloud software spending!! Screenshot from the report below. Never been more excited to be investing in cloud software businesses at their earliest stages