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The Cloud was always going to be transformative for American businesses, but over the last two years, companies have kicked the process of moving information onto the Cloud into high gear.
It's called a "digital transformation," and it's a procedure these companies consider absolutely vital for staying competitive. This isn't just my considered opinion - we can find the proof in a metric that's easily overlooked...
How much they're willing to pay the employees in charge of Cloud migration.
A recent survey by the executive recruiting firm Robert Half shows that salaries for chief information officers (CIOs), who are often in charge of such digital transformations, will rise to an average of $260,250 next year.
This news also comes on the heels of a report by Gartner that global enterprise IT spending is expected to hit $4.2 trillion by the end of this year. That's up 8.6% from 2020.
CIOs and their IT department from one end of the country to the other will be turning to one company in particular to get that massive migration job done...
This firm nearly doubled its quarterly earnings recently, and I think the stock price is going to follow quickly...
Digital Transformations Done Right
The concept of a "digital transformation" can encompass a lot. From moving systems to the Cloud to using digital twins, and even adopting artificial intelligence (AI) to analyze business data - all of these aspects are part of transforming a business for the Digital Age.
But making just one of these changes doesn't make a business digital. A full "digital transformation" means integrating technology into every aspect of a business.
At every step, the company should be using digital tools to help employees work smarter and make better decisions, to automate boring, repetitive tasks, and analyze data.
Only once it does all of these things has a company reaped the full rewards of going digital, and can say that it has digitally transformed.
This kind of bottom-up transformation of how a company does business isn't easy. That's why CIOs are being rewarded with such high salaries.
But no matter how much you pay them, even the smartest CIO can't do it all by themselves. They'll need help from a company like the one I want to tell you about today to really bring their business into the digital age.
Even Alphabet Inc. (NASDAQ: GOOG), the parent company of Google, whose name is almost synonymous with the Internet itself, is paying this company for help in digitally transforming its own business.
That company is Luxembourg-based Globant S.A. (NYSE: GLOB), a one-stop shop for any business looking to move their operations to the Cloud, adopt machine learning or AI, and optimize their business using digital technology.
Companies Are Tapping Globant's AI Advantage
Globant evaluates each one of its clients on where they could integrate digital technology into their operations and how much better they could run after doing so.
This top-to-bottom evaluation might include setting up digital twins of a client's factories to allow it to better monitor and predict which robots will need maintenance and when.
Or maybe Globant will show a client how creating an AI to collect the company's data and provide business projections and advice that could improve operations and save money.
In fact, Globant's CEO, Martín Migoya, has put AI at the forefront of how Globant helps companies digitally transform.
And it's paid off big time. When COVID-19 first hit, Globant was getting up to 10 cancellations a day, as companies were cutting their contracts with the firm to save money. But once it became clear that, amid supply chain chaos, lockdowns, and the move to online retail, companies had to become digital or go under, that changed.
Now, Globant is doing better than ever. It's no wonder. After all, with offices and stores closing and millions of people moving to work from home, companies had to figure out how to turn office-based procedures into online ones.
That's exactly the kind of digital transformation that Globant helps companies make.
"Work Smarter, Not Harder"
The same is true for a better and smarter web presence, bolstered by AI analytics of sales, marketing, and supply patterns, that became crucial over the last year.
And of course, the ongoing shipping apocalypse has required ever more inventive ways of finding new production and logistics partners, and predicting bottlenecks.
It's all made Globant hugely successful. For the June quarter, the company reported 96% earnings increase. Wall Street analysts now expect the firm to close the year with an impressive earnings growth of 54%.
And to see the firm's share price double wouldn't be unprecedented either. It already doubled between October of 2018 and June 2019. Subscribers to my Nova-X Report newsletter even had the chance to claim those gains for themselves. (Make sure you don't miss the next research recommendation - click here to learn how.)
And even if we decide to be conservative and cut Globant's growth rate in half, we'd see Globant's earnings double again in just 2.6 years - but the stock will likely do that much faster.
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About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.