“Thanks to strong demand for enterprise software, global corporate spending on software and services is projected to increase by 6.2% in 2018, the highest annual growth rate forecasted since 2007,” according to SSgA.

Increased corporate dependency on Internet solutions and cloud-based services are also catalysts that bolster the long-term thesis for XSW.

“As the Internet becomes faster and more reliable, businesses and consumers continue to move toward cloud-based software solutions, projected to become a $200 billion market by 2021, nearly double the revenue estimated for 2017,” according to SSgA. “This secular trend may aid the evolution of the industry and provide the second leg of industry growth in coming years.”

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