Vendor Analysis
published on Aug 16, 2017
Report Overview:
This NelsonHall vendor assessment analyzes Atos' offerings and capabilities in SAP HANA and S/4HANA services.
Who is this Report for:
NelsonHall’s SAP HANA and S/4HANA Services vendor assessment for Atos is a comprehensive assessment of Atos’ SAP HANA and S/4HANA services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for SAP HANA and S/4HANA services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the SAP services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Atos’ SAP HANA and S/4HANA 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.
Following the 2011 acquisition of Siemens IT Solutions and Services (SIS), Atos became one of the top ten global IT services providers and the largest European IT service provider. Its systems integration unit was strengthened to ~22k employees with the addition of Siemens SIS.
In 2014, Atos merged its consulting, application management and system integration units into a single division, Consulting & System Integration (C&SI).
On June 30, 2015, Atos completed its acquisition of the IT outsourcing business of Xerox Corp for $966m, with the transfer of 9.5k employees. Xerox ITO, which had 2014 revenues of ~$1.5bn and an operating margin of 7.7%, now forms part of Atos' Managed Services unit. In terms of revenues, 93% came from the U.S., which is now Atos’ largest single market.
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).
These four digital transformation offerings span Atos' global divisions and are intended to fuel a ~3% CAAGR through 2019.
As a key focus area, Atos is aligning capabilities across consulting, systems integration, managed services, and hardware to offer end to end HANA services. Atos is positioning its SAP HANA offerings to enable clients to migrate to HANA, either on-premise or hosted in public or private cloud, and to expand their analytical capabilities.
Atos has ~12k SAP specialists, ~2k of which have HANA skills and ~500 of which have S/4HANA functional skills. It had originally targeted to retrain all 12k with HANA or S/4HANA skills by the end of 2017, however Atos is adjusting its training requirements for functional resources to reflect slower growth in market demand.
Atos has operations across 35 countries with delivery center locations in nine countries supporting its SAP services. The India, Bulgaria, Thailand, and Poland locations are considered global delivery centers (GDC). The Poland GDC provides nearshore support to address European regulatory requirements, while India is the main offshore location, with Atos' centers based in Pune, Delhi, Kolkata, Mumbai, Bangalore, and Chennai.