Aug 28, 2014, by Rachael Stormonth
When you look at the financial performance of the four largest Indian oriented IT service providers (IOSPs) over the last four years, it becomes evident that there is a direct correlation between the level of topline growth they achieve and their expenditure on sales and marketing (S&M)…with EBIT margins benefiting from the strong topline growth.
Let’s look at a few data points[...]
May 26, 2014, by Dominique Raviart
Atos is to acquire France-headquartered technology vendor Bull for €620m in an all cash transaction. Atos offers €4.9 per Bull share, a premium of 22% over May 23’s closure price of €4.01. The offer is conditional on Atos receiving 50% and 1 shares. The largest shareholders of Bull, Crescendo Industries and Pothar Investments, which own a 24.2% stake in Bull, ha[...]
Apr 03, 2014, by Rachael Stormonth
NelsonHall recently attended an Atos analyst summit which provided a follow-up to the 2014-6 three-year plan first outlined last November (see our blog “Atos Unveils 2016 Financial Objectives”). As a reminder, the financial targets for IT services are:
2014-2016 CAGR of 5% with half of this growth to come from acquisition
A 100 to 200 bps improvement in adjusted operating margi[...]
Jan 21, 2014, by Dominique Raviart
Capgemini Group together with its subsidiary Sogeti has launched a new offering, Global Engineering Services (GES), a product engineering/R&D services offering. The new offering focuses on four main services: mechanical engineering, embedded systems, PLM software-related services and technical documentation.
Capgemini's capabilities in PES/R&D services were consoderably e[...]
Dec 16, 2013, by Rachael Stormonth
NelsonHall recently attended an event hosted by Capgemini Brazil. We were keen to find out about developments in the three and a half years since Capgemini acquired a 61% stake in CPM Braxis, at the time something of a scoop. The acquired capability provided Capgemini with a significant presence in the attractive domestic market of Brazil. But it was dilutive on margins, and management expected th[...]
Dec 06, 2013, by Dominique Raviart
Amazon Web Services has launched Amazon WorkSpaces, a public cloud-hosted standard virtual desktop offering. The offering mirrors the IaaS Amazon EC2 offerings of Amazon Web Services, with shared IT infrastructures, multi-tenancy, fast provisioning and opex models.
Amazon Workspaces features include:
A choice of different CPUs, memory, storage
Storage is attached to each virtu[...]
Nov 26, 2013, by Rachael Stormonth
HP Enterprise Services (ES) has announced fiscal Q4 2013 results, for the period ending October 31, 2013:
Revenues were $5,759m, down 9.3% y/y, and down 1% sequentially
EBIT was $255m, a margin of 4.4% down 223 bps y/y.
Fiscal Q4 2013 revenue (and y/y and sequential revenue growth) by service type was:
Infrastructure technology outsourcing $3,563m (-9%, -3%)
Application and bu[...]
Nov 15, 2013, by Dominique Raviart
Atos has unveiled its Ambitions 2016 plan in whch it has detailed how two of its key service lines (Managed Services and Systems Integration) will evolve over the next three years.
Managed Services
Managed Services (MS) is planning to grow at a 5% 2013-2016 CAGR with a slight organic growth. The unit has stabilized (organic growth 2011: +1.7% ; 2012; +2.4%;[...]
Nov 15, 2013, by Dominique Raviart
Atos has unveiled its financial objectives for its Worldline unit. The company is to float Worldline by mid-2014, while keeping a majority stake in the company. Proceeds from the IPO are to finance organic growth and especially acquisitions.
Financial objectives for the 2013-2017 period include:
Revenue growth of 5% to 7% (2013-2017 CAGR) all organic (2012 revenues €1,066m, +5%; 2013[...]
Oct 31, 2013, by Rachael Stormonth
Accenture has announced its intention to acquire PCO Innovation, a consulting and systems integration group specializing in PLM software.
PCO Innovation offers PLM strategy and process consultancy, application architecture, system implementation, data migration and application management. It specializes in PLM platforms including Dssault Systèmes, PTC and Siemens PLM.
Today’s an[...]
Oct 28, 2013, by NelsonHall Analyst
NelsonHall recently had a briefing with Axelos, the Capita and Cabinet Office JV that has been set up to commercialize the Government’s Best Practice Methodologies portfolio.
Axelos was incorporated in July 2013, 51% owned by Capita, 49% by the Cabinet Office but governed by a separate board from the parent organizations. The company will be fully operational from January 1, 2014. Axelos [...]
Sep 16, 2013, by Rachael Stormonth
We recently met with CSC's Gary Budzinski, EVP and GM of its Global Infrastructure Services (GIS) business.
A year into the ‘Fix the Foundation’ stage of CSC’s multi-year turnaround program, GIS has been aggressively pursuing the corporate drive to rationalize the offerings portfolio (shifting from a historical tendency for services to be client-cu[...]