What are B2B companies and why are they included in this collection?

Business-to-business (B2B) companies provide products and services to other businesses rather than directly to consumers. They're included in this collection because they often feature steady revenue streams, high customer retention, and provide essential services that businesses need to operate. This can make them more resilient during economic uncertainty compared to consumer-focused companies.

What does "recurring revenue model" mean?

A recurring revenue model is where customers pay on a regular, predictable schedule (often monthly or annually) for continued access to a product or service, rather than making one-time purchases. Think subscriptions rather than single transactions. Companies with this model, like many software-as-a-service (SaaS) businesses included in this collection, benefit from more predictable cash flows and typically higher customer lifetime value.

Why are payment processing networks considered "mission-critical"?

Payment processing networks (like Visa and Mastercard) are considered mission-critical because they enable the electronic transactions that modern commerce depends on. Without these networks, businesses couldn't process credit card payments or digital transactions. Their infrastructure is deeply embedded in the global financial system, making them essential to daily business operations worldwide.

What is enterprise software and how is it different from regular consumer software?

Enterprise software refers to applications designed specifically for large organizations rather than individual users. Unlike consumer software, enterprise software typically handles complex business processes and large volumes of data, offers advanced security features, supports multiple user roles, and is designed to integrate with other business systems. Companies like Microsoft, Oracle, and SAP in this collection are major enterprise software providers.

What is digital transformation and why does it benefit these companies?

Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how companies operate and deliver value to customers. It includes moving from paper to digital processes, adopting cloud services, implementing data analytics, and automating workflows. The companies in this collection provide the essential tools and infrastructure that enable this transformation, positioning them to benefit as more businesses modernize their operations.

17 handpicked stocks

Company Toolbox

Invest in the businesses that power other businesses. These carefully selected companies provide the essential tools, platforms, and services that enterprises can't live without. With recurring revenue models and high customer retention, they form the backbone of our digital economy.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 17