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Tuesday 12 December 2017

Atos gets friendly with Gemalto

Atos logoAtos looks set to embark on another substantial acquisition, should its advances to Amsterdam-headquartered Gemalto be accepted. Atos delivered an offer to Gemalto – an all cash offer of €46 per share, valuing the company at c€4.3b – on 28th November, a 42% premium to its prior close. Atos has made clear its willingness to discuss the offer, stating that it is “friendly, compelling, and addresses the interests of all stakeholders”. It is expected that Gemalto will respond by this coming Friday (15th December).

Gemalto logoGemalto does not feature heavily in TechMarketView’s research. While it has global revenues of €3.1b (and 15K employees), according to Companies House, Gemalto UK had turnover of just shy of £100m in FY16 and c300 employees. And very little of that sits in our software and IT services space. In the UK, Gemalto is predominantly known as a card and chip manufacturer, for the personalisation and distribution of smart cards and magnetic stripe cards to the telecoms & banking industries (see Understanding the UK payments market). This footprint also took it, in 2012, into a six-year contract (with extension options) with the UK’s Driver & Vehicle Licensing Agency (DVLA) – see Gemalto beats IBM to driving license contract – for the supply of a range of official permits.

However, worldwide, Gemalto is about more than card manufacturing. Read more

Posted by Georgina O'Toole at '21:58' - Tagged: acquisition   payments   M&A   identity   cybersecurity  

Tuesday 12 December 2017

**NEW RESEARCH** Predictions 2018: Infrastructure Services

btb

Breaking the Boundaries is TechMarketView’s research theme for 2018. In Infrastructure Services this means embracing newer technologies to push the limit of what has been possible to date. It also means rethinking the workforce to ensure new technologies can be fully exploited by the right experts, who are also capable of working in very different ways - DevOps being an obvious case in point.

For all the talk of digital transformation, however, the most important issue for many buyers will continue to be the cost of maintaining the systems they already have. The added layer of complexity is that these systems don’t just have to be able to do what they have always done; they will also become the foundations upon which the business is digitised. There will therefore be no let up in the pressure CIOs put on suppliers to deliver services for less, which is setting the tone for wider discussions: digitisation has got to be affordable.

2018 promises to be an interesting period with many opportunities for suppliers. Below we outline some of the developments we expect to see as the year unfolds.

The skills challenge will deepen, weakening some suppliers
We see suppliers that are not able to address the volume of opportunities in the pipeline because they simply do not have the people to deliver the services. Furthermore, we believe this issue will get worse in 2018 for some service providers as recognised specialists gravitate - and stick - to certain brands.

Risk that buyers become desensitised to co-innovation
Many suppliers now have digital transformation ‘labs’ where they can demonstrate their offerings and work on defining strategies and solutions – together with their clients. However, ‘veteran’ buyers may feel they have been here before, for example when there was a big push to put innovation into outsourcing contracts several years back.

Demand for sub-sector expertise will heighten
In 2018 we expect to see an evolution of demands from buyers. Increasingly they will want to see evidence of expertise and solutions within industries to the sub-sector level (this does not, however, mean they don’t understand the advantages of cross-pollinating ideas between sectors as well).

Automation of Infrastructure Services will step up a gear
Supplier openness to funding – and their desire to invest at speed and scale – means we will see many more end user organisations gain access to, and benefit from, automation technologies in 2018.

From help desk to customer service: AI makes it mark
Do we think 2018 will see the emergence of the perfect service desk? No – we are a way off that. However, as suppliers refine their technological approaches we expect to see incremental improvements that will help nibble away at what is a complex and widespread issue.

Infrastructure Services Predictions 2018 provides a deeper dive into these topics and the report is now available for download by eligible subscribers. If you’re not a current subscriber please contact Deb Seth for details of how to take one out.

Posted by Kate Hanaghan at '20:58'

Tuesday 12 December 2017

**NEW RESEARCH**: Enterprise Software & Application Services Supplier Prospects 2018

logoAccelerating the pace of digital adoption at scale must be the priority to re-ignite sluggish Enterprise Software & Application Services market growth.

Click here to download the Enterprise Software & Application Services Supplier Prospects 2018 report for insight into how the top suppliers in the UK tech market are tackling this challenge.

While there have been encouraging signs that the newer digital enabling technologies are maturing and moving into ‘operations’ mode, buyers remain nervous and skeptical about the business value achievable which is a real give away that the tipping point has not yet been reached. The question then, is ‘what action can suppliers take?’.

That's the market context for the latest research from the ESASViews stream. The ESAS Supplier Prospects 2018 report provides insight and analysis into the challenges facing suppliers over the coming year, what they need to do to be successful and highlights ways to win in the longer term. The report also includes profiles of the top 10 ESAS suppliers to the UK market. 

If you are an existing ESASViews subscriber you’ll know you can access the report by clicking the link above. If you’d like to discuss an extension to your existing subscription or would like details of how to subscribe to TechMarketView, please email Deb Seth.

Posted by Angela Eager at '17:57' - Tagged: software   trends   rankings   ApplicationServices  

Tuesday 12 December 2017

**NEW RESEARCH** Predictions 2018 - Enterprise Software

imageThe TechMarketView 2018 research theme of Breaking the Boundaries reflects the need for drastic change by enterprise software suppliers if they are to meet the needs of their customers who want straightforward ways to derive the insight needed to move their businesses forward. However, many customers are trapped within the confines of traditional applications where functional silos, hierarchical architectures and hard coded approaches to processes reinforce rigid business operating models.

Breaking customers out of this restrictive architecture and patterns of behaviour (while retaining much of the value of existing investments) is the task facing software suppliers. That task is made more difficult because although enterprises intuitively understand the need to invest to take their place in the data and event driven digital business world, many struggle to find a pathway, quantify the value of large scale digital investments and imagine new possibilities.

We see the following factors driving enterprise software activity during 2018:

Machine intelligence makeover to boost mainstream adoption.  Machine intelligence already needs a makeover if it is to generate substantial revenue through mainstream adoption because its presentation to market has been technically focussed and lacking sufficient proof points about the business benefits achievable when properly understood and implemented. We anticipate a maturity leap in 2018 and beyond as software suppliers apply themselves to the usability and business use cases of machine intelligence via intelligent applications.

Intelligent features will progress towards intelligent applications. Currently, we have intelligent features rather than intelligent applications (IAs). Chatbots and digital assistants are a long way from complete IAs but they are important in breaking open machine intelligence revenue streams, providing a non-threatening entry point into IA and machine intelligence for enterprises and individuals, while hinting at what could be achieved. What is particularly significant is that they will start to demonstrate how machine intelligence can augment individuals’ activities, showing how people and bots can operate as co-workers, while also serving as ‘land and expand’ opportunities for software suppliers.

Increased focus on distributing and monitising algorithms. Algorithms underpin intelligent applications, providing the capability to unlock the value from data. Understanding and deploying them is one thing, monetising them is another. Suppliers also have the opportunity to think about new value propositions and strategies around the creation and distribution of algorithms and other services and related delivery models such as Machine Learning-as-a-Service.

Commitment to convergence, collaboration and trusted chains. Operating successfully in the digital world requires organisations to look outside their four walls and take part in a highly networked, converging and collaborative ecosystem where is it critical to trust and be trusted. It also means exploring different types of collaboration such as swarm AI and hive minds.

Bringing on a new class of ‘super professionals’. Future skill requirements are one of the ‘known unknowns’ of digital transformation so fostering continual learning among employee bases to keep up to date with rapidly moving developments will be imperative. Organisations need ‘super professionals’ – individuals adept in the art of change who have the ability to repeatedly adapt to the evolving unknown in terms of skills and job functions. These super professionals need to be identified and nurtured now.

Enterprise Software Predictions 2018 provides a deeper dive into these topics and the report is now available for download by eligible subscribers. If you’re not a current subscriber please contact Deb Seth for details of how to take one out.

Posted by Angela Eager at '09:57' - Tagged: software   predictions   machineintelligence  

Tuesday 12 December 2017

**NEW RESEARCH** Predictions 2018 – Application Services

imageBreaking the Boundaries is TechMarketView’s research theme for 2018 and goes to the core of what we will be seeing in Application Services (AS) during 2018.

Longer-term, survival and success for today’s Application Services (AS) providers will demand radical changes to current business models, service portfolios and mixes, skills strategies, delivery models, supply chains, pricing and contractual constructs and beyond. Driven by both rapidly developing technological possibilities and ever heightening customer expectations, traditional service tower boundaries are breaking quickly and convergence is accelerating fast in this domain.

In 2018, we expect to see the following major factors at play:

Self-cannibalisation accelerates as the full impact of resistance is felt. With competitive renewals now regularly resulting in 40% price cuts, vendors will increasingly choose to get ahead and seek to both best ameliorate the short-term pain while positioning to maximise for longer term returns. Observing Steve Jobs’ maxim of “If you don't cannibalize yourself, someone else will," will become mainstream practice.

 Convergence and hyper-specialisation are the new the watchwords. The AS paradigm is shifting to one of mass micro manufacturing – hyper-specialisation based approaches capable of offering bespoke customisation of platform based services at (or below) ‘apps store’ prices. This in turn is both challenging fundamentally the de facto delivery model that forms the core of most established AS suppliers and breaking down the boundaries between traditionally adjacent service towers.

Commercial ‘creativity’ comes to the fore. Suppliers will increasingly leverage their balance sheets and those of their ecosystem partners to offer buyers substantial co-investment incentives and bring forward anticipated longer-term benefits. Attitudes towards risk will also embolden, with outcomes of enterprise-wide digital transformation programmes underwritten in efforts to both loosen customer purse strings and land elusive bigger deals.

AS suppliers break into BPS. The new world of Business Process Services (BPS) is developing apace. It is also becoming a key battleground between AS suppliers seeking additional sources of revenue through product extension and established BPO players looking to reinvent themselves for the Business 4.0 age.

Acquisitions regain their mojo. Having fallen back significantly this year from record breaking levels of acquisitive activity in 2016, AS suppliers will be back out in the market and shopping with gusto as we head through 2018 and beyond as they seek alternative sources of improved top-line performance and to build out the capabilities now demanded for success.

More detail on these predictions can be found in Application Services Predictions 2018. Readers who don’t have a subscription can contact Deb Seth for details.

Posted by Duncan Aitchison at '09:08' - Tagged: predictions   ApplicationServices  

Tuesday 12 December 2017

NOMINATIONS OPEN – GREAT BRITISH SCALEUP EVENT MARCH 2018

logoWe are delighted to announce the third TechMarketView Great British Scaleup Event will be held in London on Tuesday 6th and Wednesday 7th March 2018.

The Great British Scaleup programme is already helping UK tech SMEs achieve a step-change in growth, through a closed-door, 90-minute workshop session with TechMarketView analysts and executive advisors from ScaleUp Group, the team of successful tech entrepreneurs that have been responsible for accelerating growth and achieving over £4b in successful exits at many well-known tech companies.

logoThe workshop will assess your company’s potential and scalability using the ScaleUp Growth Index®, a proprietary scorecard which identifies areas of your business that might be an inhibitor to achieving extraordinary growth. Unlike traditional company scorecards which measure past financial performance, the ScaleUp Growth Index® assesses your company’s future scale-up potential. The ScaleUp Growth Index® gets you better prepared to undertake the next stage of your scale-up journey. You can use the Index to compare yourself with peers and track your progress as you implement your plans.

logoIn addition, every applicant will be entitled to an optional initial infrastructure assessment at no charge and with no obligation by managed cloud and infrastructure services firm Cogeco Peer 1, the Enterprise Cloud & Infrastructure Services Technology Partner for the Great British Scaleup programme.

There are 4 workshop slots available on each day. To nominate yourself or a company you know, just fill in the Nomination Form on the TechMarketView website here by Wednesday 31st January 2018. There is no charge to participate, nor any obligation to follow through on the outcomes.

If you have any queries about the Great British Scaleup programme, please drop an email to gbs@techmarketview.com.

Posted by HotViews Editor at '06:00'

Monday 11 December 2017

TechMarketView research theme 2018: Breaking the Boundaries

Breaking the Boundaries graphicEvery year TechMarketView chooses a theme that we believe sets the tone for the key trends that will determine the shape of the UK tech market and the fortunes of its players for the year and beyond.

In 2016, we were all ‘Surfing the Waves of Disruption’ as competition—especially from new market entrants—forced the pace of digitalisation in traditional business enterprises, including the technology industry itself. Then in 2017, we were ‘Unlocking the Intelligence’; this theme acknowledged the complexity of true digitisation, involving the need to extract value from vast swathes of data created by both legacy and ‘change the business applications’.

In 2018, TechMarketView’s research focus remains on digital transformation, as we watch the story further evolve. Our theme – Breaking the Boundaries – emphasises that, as organisations progress with their digital transformation agendas, they can no longer be insular. They must look beyond their organisational boundaries in ways that they never have before. To fully embrace the possibilities presented by digitalisation, enterprises and government organisations – and the ICT suppliers supporting them - must throw off the shackles limiting progression. They must look beyond their own four walls when it comes to skills & resources, to data, to technology, and to innovation.

With digital skills & resources scarce, creative ways to pull in digital talent must be considered. As well as traditional routes such as partnering (which need to become more innovative), that might also include the use of public freelance marketplaces or crowdsourcing. Such an approach will also allow the flexibility and agility to respond to rapidly changing digital requirements.

In a digital world, organisations are increasingly harnessing the power of data for competitive advantage. So, drawing on data from external sources – particularly if it is difficult for others to access – that can be exploited to advance organisational aims, is highly valuable. Those sources might be public, but they might also come from forming innovative – even exclusive - partnerships with data owners.

Gone are the days when all technology assets sat within internal datacentres. As organisations increasingly adopt as-a-service models, there is an increasing reliance on technology in the cloud. The internet-of-things adds another dimension. Now, the source of more and more data is the raft of sensors sitting on everything from shipping containers to street lights. As organisations adapt their modus operandi to take advantage of the data collected, they become increasingly reliant on third party technology sitting in far harsher, and less secure, environments than a server room. The supplier ecosystem within which ICT suppliers reside will become increasingly complex – with more potential points of failure.

And when it comes to organisations ensuring that their use of technology is advancing at an appropriate pace, innovation can also come from ‘outside’. For suppliers and end user organisations alike, drawing on ideas from academia, hackathons, or innovation hubs to keep ahead of the competition is increasingly common and will grow in popularity.

Crucially, to cope with these changes, our view is that traditional organisations – both end users and technology firms - must push their own boundaries culturally, and adopt an entirely different mindset. ‘Breaking the Boundaries has wide implications and the theme will be picked up in each of our research streams throughout the year ahead.

Over the next few days, TechMarketView’s Research Directors will be publishing the 2018 Predictions for their research focus areas: Enterprise Software, Infrastructure Services, Application Services, Business Process Services and in the verticals, Public Sector and Financial Services. They will each explain how our 2018 - Breaking the Boundaries - research theme applies to their area of the market. Today, we start with insight from our BusinessProcessViews Research Director, Marc Hardwick: see Predictions 2018: Business Process Services.

Posted by Georgina O'Toole at '09:00' - Tagged: predictions  

Monday 11 December 2017

Save the date: TechMarketView Evening 2018!

TMVE imagesWe are delighted to announce that the 2018 Evening with TechMarketView will take place on Thursday 13th September 2018.

This will be our sixth annual TechMarketView Presentation and Dinner and in line with our 2018 theme we will of course be ‘Breaking the Boundaries’.

It promises to be another enjoyable evening of analyst insight and quality networking over drinks and dinner. The venue will once again be the magnificent Royal Institute of British Architects (RIBA) in Portland Place, London.

So, mark your calendars now and email tx2 Events to express interest in the event and receive notification when tickets go on sale.

If your organisation would be interested in sponsorship opportunities at the 2018 event please contact Tola Sargeant for further details of the various packages available.

We look forward to seeing you at RIBA in September 2018! 

Posted by HotViews Editor at '08:48'

Friday 08 December 2017

* NEW RESEARCH * New high for UK-Irish tech funding

chartThe steady increase in venture capital funding of UK and Irish technology companies continued in Q3 to set a new record, according to the latest data from corporate finance firm, Ascendant. During Q3, £1.69b was invested in 217 deals of more than £0.5m by 268 investors at an average deal size of £7.8m. This represents a 34% yoy increase in the number of deals and a 130% yoy increase in the total quarterly value.

The latest edition of IndustryViews Venture Capital includes nearly 30 pages summarising significant venture funding in UK tech companies during the quarter.

Subscribers to the TechMarketView Foundation Service can download our latest quarterly review of UK software and IT services M&A in the just released report, IndustryViews Venture Capital Q3 2017.

For further information, please contact our Client Services team at info@techmarketview.com.

Posted by HotViews Editor at '07:40' - Tagged: funding  

Wednesday 06 December 2017

*OUT NOW* UK Public Sector Market Trends & Forecasts to 2020

3Bs Bodies Brexit BudgetDid you miss it? Last week, TechMarketView’s PublicSectorViews team published its annual review of the key trends impacting the UK public sector software and IT services market. The report gives our detailed analysis of how those trends will impact each of the subsectors – central government, local government, health, education, police and defence – through to the end of the decade.

We highlight a push-pull scenario. On the one hand, public sector organisations know they must control budgets in the short-term, as well as dealing with all sorts of uncertainty (accentuated by Brexit). On the other hand, they are conscious of the need to invest to attain increased efficiency and productivity for the longer-term. The impact will vary between subsectors, between service lines, and between suppliers. And with diversity of performance a continuing feature, the ‘winners’ in the market will be those that judge the market correctly, make sure they are in the right place at the right time, and offer the right mix of products and services for a sector’s needs.

UK Public Sector SITS Market Trends & Forecasts to 2020 is available for download by PublicSectorViews subscription clients now. If you are not sure if your organisation has a subscription or you would like to sign up, please contact dseth@techmarketview.com to find out more.

Posted by Georgina O'Toole at '22:36' - Tagged: health   public+sector   centralgovernment   localgovernment   market+trends   defence   education   police   forecasts   police   police   police   police  

Wednesday 06 December 2017

**NEW RESEARCH** Business Process Services Supplier Prospects 2018

For the most comprehensive understanding of the UK’s Business Process Services supplier landscape for next year and beyond, read BPS Supplier Prospects 2018.teaser

The report looks at the leading players in the UK BPS market, and assesses what they will need to do to be successful from 2018 onwards. We also provide our view on the likely hurdles that will prevent suppliers reaching their potential in the short and mid-term.

The BPS market is going through a period of unprecedented change and all the major suppliers are having to adapt to the conditions. New greenfield and ‘big-ticket’ opportunities are in short supply at a time when intelligent automation is shaking up existing business models. Buyers are looking for partners who can deliver greater flexibility and demonstrate faster results.

If you are either a BPS provider looking to understand how the competition is gearing up for 2018, or a buyer of business services looking to evaluate potential suppliers, then this is the report for you.

If you would like to access the report (which is authored by Research Director, Marc Hardwick) and are not currently a subscriber to our Business Process Services research, please contact Deb Seth.

Posted by HotViews Editor at '20:00' - Tagged: RPA  

Tuesday 05 December 2017

*NEW RESEARCH* Castleton Technology: The post integration journey

Castleton Software Suite diagramFollowing the announcement of Castleton Technology’s H1 results earlier in November (see Castleton H1 revenue up 11%) and the more recent acquisition of Kinetic Information Systems Pty (see Castleton buys and builds down under), we took the opportunity to catch up with the company’s CEO, Dean Dickinson, and CFO, Haywood Chapman.

The H1 results were strong but there is much more to come from the provider of software and managed services to the public and not-for-profit sectors (predominantly the social housing sector).

PublicSectorViews' subscribers can learn more about Castleton's current business, its future investmnet focus and its prospects in the latest resaerch note from TechMarketView's PublicSectorViews team - Castleton Technology: The post integration journey. If you are not yet a PublicSectorViews subscriber, or would like to find out if your organisation has access to the research, please contact Deb Seth

Posted by Georgina O'Toole at '16:32' - Tagged: public+sector   localgovernment   software   managedservices   housing  

Friday 01 December 2017

*NEW RESEARCH*: Enabling digital: services shift execution & intelligent PSA

imageThere’s no shortage of discussion around the ‘why’ of digital enablement but given the limited revenue suppliers are generating from all things digital there is definitely a question about the ‘how’. At TechMarketView we hear time and again that one of the inhibitors of digital change is converting digital strategy into digital execution.

The latest report from the ESASViews research stream, ‘Enabling digital: services shift execution and intelligent PSA’ examines the role of professional services automation in the 'how' of digital change. If you are a subscriber you can download the report here; if not Deborah Seth will happily provide you with subscription details.

Why is PSA software important? As more and more companies pivot towards services provision to improve customer engagement and open up growth potential via new business models as part of their digital change plans, they need the tools to help run those services-oriented operations. This means the addressable market for PSA is expanding beyond pure services organisations like technology and management consultancies, embracing the growing number of ‘services second’ companies. And as automation ought to go hand in hand with intelligence, PSA software is starting to embed machine intelligence capabilities, providing tangible business uses for these techniques.

The report provides insight into the high growth, expanding PSA market, how some of the notable PSA providers - Kimble ApplicationsUnit4FinancialForceNetSuite – are tackling it alongside dark horses like Atlassian, and how PSA has a role in delivering services-oriened digital change.

Posted by Angela Eager at '13:15' - Tagged: software   machinelearning   digitaltransformation   machineintelligence  

Friday 01 December 2017

*New Research* UK public sector SITS market trends & forecasts 2017

Report coverDuring the summer, we gave subscribers to TechMarketView’s PublicSectorViews service sight of our UK public sector SITS market forecasts through to 2020. As always, we included a full breakdown of the numbers by vertical subsector (central government, local government, education, health, police and defence) and by SITS activity (infrastructure services, application services, business process services and software).

Yesterday, we published our up-to-date, in-depth, analysis of the drivers and trends in each of those sectors. Importantly, we also give our view on how those trends are impacting the market. And how suppliers can best position themselves to take advantage of related opportunities.

So, from approaches to encouraging accelerated take up of emerging technologies, to trends in contract disaggregation, to the race for digital skills, you’ll find it all in UK public sector SITS Market Trends & Forecasts 2017… that’s if you are a PublicSectorViews subscriber, of course! You can also download a spreadsheet with all the market forecasts included.

If you would like to find out if your organisation has a subscription or talk about getting access, please contact Deb Seth to find out more. Deb would also be happy to discuss TechMarketView ‘Engagements’ – hearing from the analysts in person, gives you the opportunity to pick their brains and talk about how the trends in the market will affect your organisation in the year(s) ahead.

Posted by Georgina O'Toole at '09:34' - Tagged: health   public+sector   centralgovernment   localgovernment   defence   education   police   police   police   police   police