Are these the next tech stars of the ASX?

Although Australia’s tech sector pales in comparison to those in the U.S. and China, it certainly is no slouch.

In fact, at the small end of the market I believe there are a number of high quality tech shares with enormous potential.

Two which I think investors ought to get better acquainted with today are listed below. Here’s why I like them:

The Data Exchange Network Limited (ASX: DXN)

This data centre company aims to capitalise on the growing demand for data centre services brought about by the incredible rise of cloud computing. As well as opening two data centres of its own in Melbourne and Sydney, Data Exchange Network builds modular data centres on behalf of its customers. These can be built anywhere in the world and, according to the AFR, are increasingly popular among resources companies such as Rio Tinto Limited (ASX: RIO). I think Data Exchange Network could have a very bright future ahead of it and has all the hallmarks of being the next Nextdc Ltd (ASX: NXT). It may be early days (its shares will hit the ASX boards tomorrow morning at 20 cents per share) and a reasonably high risk investment, but I believe the risk/reward from a long-term investment is compelling.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a recently-listed workforce management company that aims to deliver innovative solutions to the management of contracted workforces in Australia and New Zealand. It provides contracted workforce and human resources (HR) outsourcing services to enhance the HR function of its clients. I was very impressed with its recent half-year result which saw the company report half-year revenue of $106.7 million and profit after tax of $1.9 million. This was a massive 467% and 420% increase, respectively, on the prior corresponding period and puts it in a position to outperform its prospectus forecast.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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