I think the ASX has some excellent technology shares that could deliver substantial growth over the coming decade.
And while many tech shares have been volatile this year, I believe there are opportunities for investors willing to look beyond the short term.
Three companies stand out to me because of their strong market positions and potential to become much larger businesses. Here's why I'd happily buy them.
SiteMinder Ltd (ASX: SDR)
SiteMinder is one of my favourite smaller ASX tech shares. Its software helps hotels manage bookings, room availability, and pricing across different sales channels.
I like that the company has two opportunities to grow. The first is attracting more hotels onto its platform. SiteMinder already works with more than 56,000 hotels worldwide, but I believe there's plenty of room to expand that customer base.
The second is earning more from those existing relationships. For example, hotels can adopt additional tools to improve room pricing and increase bookings, allowing SiteMinder to generate more revenue from each customer.
And I believe the financial benefits could be substantial. At its recent annual general meeting, management reaffirmed its ambition to grow annual recurring revenue (ARR) at a compound annual rate in the mid-20s through FY30.
It also expects adjusted EBITDA margins to reach the mid-20s by then, compared with 10.6% in FY26.
If SiteMinder achieves those targets, I believe its earnings could increase considerably faster than revenue.
Competition, execution risks, and potential artificial intelligence (AI) disruption are worth considering, but I like the long-term opportunity.
Xero Ltd (ASX: XRO)
Another ASX tech share I'd buy is Xero, which I believe has enormous opportunities to expand internationally.
Its accounting software is already used by almost five million customers, but I think there's plenty of room for growth, especially in the United States.
And its acquisition of payments platform Melio could help accelerate that expansion.
By combining accounting and payments, Xero can help customers manage more of their financial operations through one platform.
I think this strengthens its competitive position while creating opportunities to generate additional revenue from existing customers.
And the company's financial performance has been encouraging. In FY26, Xero increased revenue by 31% to NZ$2.75 billion, including the contribution from Melio. Even excluding the acquisition, revenue grew 21%.
I believe Xero can continue attracting customers while increasing the amount they spend on its services.
The valuation remains demanding, and Melio needs to deliver, but I think Xero could become a significantly more profitable business over the next decade.
TechnologyOne Ltd (ASX: TNE)
My final pick is TechnologyOne, which has an outstanding history of growing its software business.
The company provides technology to councils, universities, government departments, and other organisations that depend on its systems to manage essential operations.
TechnologyOne has been growing strongly for well over a decade, and I believe this trend can continue thanks to its SaaS+ model, which is changing how customers adopt its software.
This model has seen TechnologyOne replace traditional one-off consulting revenue with recurring subscription income, positioning it for growth.
In the first half of FY26, TechnologyOne increased ARR by 17% to $598 million. It is now targeting more than $1 billion by FY30.
I am confident it can get there, but with FY26 results due on 17 November, I'll be watching for further evidence that TechnologyOne is delivering on its ambitious targets.
Foolish takeaway
I believe SiteMinder, Xero, and TechnologyOne have excellent opportunities to become much larger businesses over the coming decade.
What I like is that all three ASX tech shares can grow by attracting new customers while generating more revenue from the relationships they've already built.
In light of this, I'd be happy to buy and hold them for many years.
The post Why these are 3 of my favourite ASX tech shares to buy appeared first on The Motley Fool Australia.
Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder and Xero. The Motley Fool Australia has positions in and has recommended SiteMinder and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026