Digital Transformation (DT or DX) is the use of new, fast and frequently changing digital technology to solve problems often utilising cloud computing, reducing reliance on user owned hardware but increasing reliance on subscription based cloud services. Some of these digital solutions enhance capabilities of traditional software products (e.g. Microsoft Office compared to Office 365) whilst others are entirely cloud based (e.g. Google Docs).
As the companies providing the services are guaranteed of regular (usually monthly) recurring revenue from subscriptions, they are able to finance ongoing development with reduced risk (historically most software companies derived the majority of their revenue from users upgrading, and had to invest upfront in developing sufficient new features and benefits to encourage users to upgrade), and delivering more frequent updates often using forms of agile software development internally.