[from the 12/21/2015 edition of Smart Tech Investor]

The cloud software megatrend will power through 2016 in full force because organizations continue to realize the multiple benefits of migrating to the cloud from legacy on-premise solutions.

Software accessed from the cloud is not only easier to install, manage and operate, it’s also less expensive and more efficient in the long run. The lower total cost of ownership is often the deciding factor, especially when pricey annual maintenance fees charged by on-premise software vendors are added into the mix. The best-positioned cloud-software providers have years of growth runway ahead of them.

I am adding Workday (WDAY), one of the main beneficiaries of the cloud software megatrend, to the Next Wave Portfolio with a buy limit of $85 and a stop loss of $65. The company is a leading provider of cloud-based software used for human capital management (HCM) and financial management (FM). It sells mainly to very large organizations.