Vendor Analysis
published on May 18, 2018
Report Overview:
This NelsonHall vendor assessment analyzes Atos' offerings and capabilities in Cloud Advisory, Assessment, and Migration Services.
Who is this Report for:
NelsonHall’s Cloud Advisory, Assessment and Migration Services Vendor Assessment for Atos is a comprehensive assessment of Atos’ cloud advisory, assessment and migration services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for cloud consulting services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in cloud consulting services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Atos’ cloud advisory, assessment and migration service offerings, capabilities and market and financial strength, including:
- Analysis of the company’s offerings and key service components
- Revenue estimates
- Identification of the company’s strategy, emphasis and new
- developments
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Atos was formed in 1997 as the result of a merger between two French IT services firms, Axime and Sligos, with a focus on infrastructure management services. It is headquartered in Bezons, a northwestern suburb of Paris, France.
Expanding on its infrastructure scale, Atos has increasingly shifted its focus toward cloud services since the acquisition of SIS. An initial joint venture and then a series of acquisitions has expanded Atos’ cloud practice:
- In 2012, Atos entered into a joint venture with EMC and VMware to create a cloud hosting and services entity named Canopy
- In August 2014, Atos completed the acquisition of Bull, expanding the firm’s private managed cloud, cyber-security, big data, and data center capabilities
- In June 2015, Atos completed the acquisition of Xerox ITO, expanding its North American cloud operations through the absorption of Xerox’s virtual machine and storage business, which operated out of North America data centers
- In February 2015, Atos took sole ownership of Canopy, by acquiring the shares owned by EMC and VMware. As Canopy became a subsidiary of Atos, EMC and VMware became shareholders of Atos itself. All Atos offerings in the scope of cloud computing continue to go to market under the Canopy name.
In Q4 2016, Atos introduced a three-year strategy focused on digital transformation, primarily through a focus on building out a digital transformation factory, which has four key digital transformation offerings:
Atos Canopy Orchestrated hybrid cloud
- SAP HANA by Atos
- Atos Digital workplace
- Atos Codex (analytics, cognitive and IoT).
In 2017, these four offerings represented ~€2.9bn of revenues, 23% of total Atos revenues. Atos has publicly stated its goal of having these offerings represent 40% of its revenues 2019.
In 2016 and 2017, Atos completed two acquisitions to expand its orchestrated hybrid cloud capabilities, primarily by adding to its ServiceNow capabilities. These acquisitions were:
- Engage ESM in December 2016
- ImaKumo in October 2017.
Atos has ~3.3k cloud specialists. It estimates that ~1.7k of these are primarily focused on cloud consulting, advisory, and migration services.
The cloud advisory and migration team is split between being onsite with clients and based in Atos' global delivery network. Approximately 700 of these employees are located at close proximity to Atos clients, while the remaining ~1k comprise the cloudification factory that is part of Atos' Cloud COE.
Atos' cloudification factory is based in delivery centers in India (Mumbai, Bangalore and Pune), Poland and Romania. Atos also maintains cloud skills in Morocco, Malaysia, Mexico, U.S. and Philippines delivery centers.